MenuMENU
SearchSEARCH

A Backup Plan

DMS outage revealed a gap that dealers may want to fill.

August 22, 2024
A Backup Plan

The CDK Global software outage pointed up the wisdom of switching to the electronic-contracting technology some dealers have avoided adopting.

Credit:

Pexels/Sora Shimazaki

2 min to read


The early-summer outage of CDK Global’s software systems turned out to be one of those events that presents a necessary contrast in hindsight.

Thousands of automotive dealers found themselves thrust back into the preinternet era that some had probably never even worked in. Though in some ways that might have felt like a breath of fresh air, in others it likely caused innumerable headaches.

My mom always said, “You don’t miss the water till the well runs dry,” whenever our power would go out due to a summer thunderstorm or a car hitting an electricity pole. We had a well whose pump depended on the power, and I remember what it was like to go without running water for a good chunk of a day or more. You’d turn on a faucet out of reflex, only to sigh disappointingly when nothing came out.

It must’ve been something like that for auto dealers those two weeks or more without access to their dealer management system or customer relationship management software. I can see them reaching for the portal before recalling they’d find an empty screen starting back at them.

Many resorted to pen and paper – I doubt any still have typewriters – to record sales, get signatures and fill out repair orders, because documentation is still necessary, in fact more so as the years go by due to regulation.

The contrast I mentioned earlier is simply what it’s like with and without the document-processing systems that the CDK systems shutdown took away for many dealers. Having them is obviously a lot more convenient and consistent than a paper trail that can get damaged or lost.

As compliance specialist Gil Van Over, one of our F&I and Showroom columnists, said, the outage pointed up the wisdom of switching to the electronic-contracting technology that many dealers have been using for a while now but that others have held off adopting.

Such tools can help dealers smooth out their day-to-day business, as well as steer through the inevitable shutdowns that will come, just like those summertime power outages of my childhood. It helped that Mom tended to keep a couple of jugs of water on hand, just in case.

Subscribe to Our Newsletter
No form configuration provided. Please set either Form ID or Form Script.

More Dealer Ops

Dealer Opsby Hannah MitchellAugust 26, 2025

Franchises, Throughput Down in First Half

A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.

Read More →
SalesAugust 25, 2025

How to Build a High-Performance Sales and F&I Team

Performance and profits start with people chosen and led the right way.

Read More →
Dealer Opsby Hannah MitchellAugust 19, 2025

Buy-Sells Up in Q2

Kerrigan metrics show there’s plenty of demand, though many sellers are waiting to pull the trigger.

Read More →
Ad Loading...
F&Iby StaffApril 2, 2025

DOWC Powers the Future of F&I for NESNA

Company is providing a fully integrated F&I administration model to Nissan Extended Services North America’s dealer network.

Read More →
Industryby StaffMarch 26, 2025

March New-Vehicle Sales Healthy

Despite incentive spending not keeping pace with deliveries volume, consumers make their purchases ahead of tariffs impact.

Read More →
Product & Technologyby StaffMarch 13, 2025

New DOWC Program Debuts

Hybrid solution combines benefits of reinsurance and dealer-owned warranty companies.

Read More →
Ad Loading...
Dealer OpsJanuary 15, 2025

Carryover Rate Important for Auto Retailers

Understanding how it plays into inventory risk management is an important consideration.

Read More →
Trainingby StaffJanuary 13, 2025

Dealer Survey Finds Anxieties

Kerrigan Advisors poll shows percentage of retailers expecting lower profits, valuations is on the rise.

Read More →
Industryby StaffDecember 23, 2024

Calif. Dealer Group Challenges Scout Direct Sales

Says VW unit’s plans to sell directly to consumers violate state law.

Read More →
Ad Loading...
IndustryNovember 27, 2024

Six Powerful Questions

Take the time to answer these and lay the groundwork for a successful year-end.

Read More →