In Seekonk, Massachusetts, a CDK Global system outage has caused significant disruption for Mazda dealership general sales manager Ryan Callahan. Speaking to CNN, Callahan expressed his concerns about the long-term financial impact of the outage, stating that it could take months, if not years, to correct.
Across North America, nearly 15,000 car dealerships are struggling to provide services to customers due to the CDK shutdown. This has left car buyers with limited options and reduced leverage in negotiating deals, according to Tom McParland, owner of Automatic Consulting, a national car buying service.
In Massachusetts, Midway Automotive owner Michael Deveney shared how his dealership had to send customers to local RMV offices to register cars in person after the shutdown. This process became increasingly difficult as the RMV started turning away walk-ins due to overwhelming demand.
Similarly, Katelyn Salvato, a title clerk for Pride Motor Group in Lynn, Massachusetts, has been unable to register vehicles since last Tuesday. Salvato shared with CNN that she had to manually submit registrations to the Massachusetts RMV, facing strict drop-off hours and restrictions on dealership employee transactions.
At dealerships like Capital City Buick GMC in Vermont and a Porsche dealership in Los Angeles, employees have resorted to using pen and paper to process purchases. Scott Campbell, a salesman at Capital City Buick GMC, estimated that wait times have doubled or tripled as a result.
Some customers, like Don Aycock in Florida and Robbie Jacob in San Diego, have experienced delays in purchasing a car or getting service due to the CDK shutdown. Aycock had to make multiple trips to the dealership to sign paperwork, while Jacob was unable to get his car’s broken air conditioning fixed.
As CDK Global works to restore its systems, its competitors such as Cox Automotive and Tekion are on high alert. Cox Automotive temporarily halted integration with CDK systems as a precaution, while Tekion reported an increase in inquiries from dealerships following the outage.
For dealerships, switching from one software system to another is not a simple task. It requires training employees and navigating contractual obligations, making it a lengthy process. The impact of the CDK outage on car dealerships and customers continues to be felt as they navigate the challenges of operating without essential software services.
