CDK Global

As car shoppers and dealers adjust to the electric vehicle phenomenon, they’re looking for answers to questions about the inevitable road to an all-electric future. Commercial charging stations are popping up at banks, parking garages and along highways to meet the increasing number of EVs on the road but despite the progress questions remain.

Some roadblocks, whether the range or the not-so-affordable price tags, have impacted recent consumer demand and seemingly endless headlines.

So, who exactly is the owner already behind the EV wheel?

Despite swirling economic head winds, fixed operations remains a bright spot for franchised dealers. It’s the steady stalwart relied upon as a profit center during the variables that impact sales. And franchised service centers have distinct advantages that independent shops can’t beat.

In a recent survey, CDK asked over 2,000 service shoppers where they turn most often for vehicle repairs and maintenance. Nearly half, 43%, picked a dealership as their first choice.

The camaraderie and partnership that comes with being at NADA were in full effect at this year’s show in Las Vegas.

The excitement about what’s to come was felt at the CDK booth, where hundreds of visitors stopped by to learn about new capabilities and solutions that provide more efficient and connected buying and selling experiences. Before the doors closed, Jason Swiech, CDK’s lead product marketer for F&I, shared his thoughts on the show and what made it so unique.

This is your 12th NADA Show with CDK. What felt different about this year?

After three years of dramatic post-pandemic market swings, buyers in 2024 are poised to take back the wheel with plenty of inventory choices, slightly lower prices and a jump in automaker incentives. This buyer’s market has many hailing the return of normalcy.

Still, analysts predict slow growth for the industry in general, with many forecasting around 16 million new vehicle sales. That’s over a million fewer sales prior to the pandemic.

The automotive industry has returned to somewhat of a pre-pandemic state at the end of 2023, but car buyers are still shopping with pandemic-style expectations. CDK surveyed nearly 1,200 car buyers and approximately 350 dealers to gauge the pain points and improvements at dealerships across the country over the last year.

Winning over a shopper is difficult for any type of retailer. Securing someone’s business looking to service their car however, might be the hardest of all.

There is little debate of the value the F&I function provides a car dealership. However, as the industry consider who is best to discuss and sell F&I products to buyers CDK Global wanted to get a better understanding of how consumers feel about the process today.

CDK Global surveyed over 1,200 car buyers for the F&I at the Dealership white paper to find out just what they think of one of the most important profit centers a dealership has.

The time it takes between when a customer walks through a dealership’s doors to driving off the lot is crucial to customer satisfaction. A CDK Global survey of shoppers indicated that the expectation is two hours or less in the dealership. Anything beyond that begins to degrade the experience.

Customers are increasingly vocal about subpar service and they’re taking it online. According to the latest National Customer Rage Survey from Arizona State University’s W.P. Carey School of Business, about 32% of dissatisfied customers shared their unhappiness on social media. That’s more than twice the number reported in 2020.

CDK Global endeavors to connect dealers with the automotive industry at large and our in-depth and revealing research covers everything from Modern Retail and F&I to service and shopper behavior. Below, find the top white papers and e-books CDK published in 2023 on automotive retail issues that are top of mind for car dealers everywhere.

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