If you had any doubt about the power of the test drive, a recent study* by CDK should put it to rest.
CDK surveyed over a thousand new car buyers on a number of topics but one that was crystal clear: just how important the test drive was to not only their purchase decision but to what dealer they purchased from.
There’s no question that a car’s price, and very often its monthly payment, often determines the car people buy. But even as car prices seem higher than they’ve ever been, many buyers are happy to hit the top of their budget.
In a recent study*, CDK wanted to find out just how budget-conscious shoppers truly were. And while 93% of shoppers said they indeed had a set budget, 57% admitted the car they finally purchased was at the top end of their acceptable range.
Simply put: Car shoppers were willing to splurge on a vehicle that best met their needs and desires.
In a recent study focused on the car buyer journey*, CDK uncovered that dealership Sales staff are extremely good at delivering two things that are critical to closing sales: test drives and assessing what a customer truly needs.
While many car shoppers come into the showroom with a general idea of the kind of vehicle they think they want, they often want their purchase considerations confirmed by expert dealership personnel. And, it turns out, car dealerships are delivering: 94% of customers reported that dealership staff spent time assessing their vehicle needs.
A surprisingly large number of U.S. auto dealers say their Sales staff aren't enthusiastic about selling EVs, according to the recent CDK Dealers Face the EV Transition white paper. A total of 250 dealership leaders in regions across all 50 states took part, and a startling 49% said their Sales teams weren’t excited at all about selling EVs. The differences between regions were also clear.
From supply chain disruptions and volatile interest rates to staffing woes and inflation, 2023 was a year rife with perpetual heartburn for most of the automotive industry. CDK reached out to dealers for their take on the year that was while they were right in the thick of sales and service in 2024.
Electric vehicles make up a small percentage of the auto market today, and their adoption has had its ups and downs. But their appeal continues to grow as new models with lower price points, greater range and a variety of body styles roll off factory floors. And, those drivers who already made the leap won’t be going back to gas anytime soon.
Whether you consider summer starting on Memorial Day, the last day of school, or the official start on June 20, it starts at dealerships much sooner. Millions of families are planning their vacations, and according to experts at The Vacationer, nearly 80% of people say they’re planning a road trip this summer. Memorial Day road travel was the busiest in 20 years according to AAA.
The automotive retail industry is known for long-held stereotypes about its workers and roles. To say it’s a misunderstood industry is an understatement at best. Nearly 2 million people were employed in the motor vehicle industry over the last 18 years, contributing to this multitrillion-dollar sector’s success, and dealerships are a big part of it.
The all-American pastime of the summer road trip is alive and well. The Transportation Department reported travel rose to over 3 trillion miles in 2023, setting a new yearly record and topping pre-pandemic levels for the first time. All predictions point to 2024 beating that already sky-high number.
As the electric vehicle revolution propels forward, dealers across the country are coming to terms with learning, selling and servicing a new class of vehicles that many consumers have never driven and show little interest in.
CDK has covered the state of the EV landscape from the EV shopper, the ownership experience and the impact on dealership service in three studies over the past year.
