If you are planning to drop by car showrooms this weekend, it may require an enhanced level of patience. An online breach has disrupted the software utilized by roughly 15,000 auto dealerships across the country, resulting in a deceleration in numerous vehicle transactions.
Not all auto dealerships are experiencing the impact, and many of those impacted by the breach are still in operation. However, their activities have been impeded, with several reverting to manual processes while awaiting a resolution to the intrusion.
An Array of Software Providers; Solely One Affected
Presently, car dealerships function with the aid of Dealership Management Systems (DMS) software, which are computer programs designed to facilitate inventory management, credit handling, payment processing, and the compiling of sales agreements.
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Multiple companies offer DMS solutions. The breach has impacted just one primary provider: CDK Global, headquartered in Illinois. Dealerships leveraging software from competing providers remain unscathed.
As per CNN, CDK has notified its clienteles that the system may be non-functional for a few days.
While the corporation has maintained silence regarding the issue’s nature, Security Week illustrates, “Given the severe disruption caused by the breach, it is probable that ransomware is involved.” An IBM study from the prior year discovered that the typical duration of a ransomware incursion was 3.84 days.
Several Affected Dealerships Maintaining Operations
Typically, weekends are pivotal sales periods for auto dealers. Individuals in the United States who labor during weekdays usually engage in vehicle shopping on Saturdays and Sundays. Consequently, few dealerships are inclined to shutter their operations over the weekend.
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Rather, many dealerships are embracing traditional methodologies.
Expressing to CNN, Brian Benstock, general manager of Paragon Acura in New York, stated, “My sales team has the capacity to draft a purchase agreement manually.”
Craig Schreiber, who co-owns multiple dealerships near Buffalo, New York, remarked to USA Today, “Due to our prior preparations, including the utilization of handwritten, traditional documents across all our departments, we are able to adopt antiquated practices.”
Actions You Can Take
Given that some dealerships are currently operating at a slower pace, potential buyers should be ready.
Here are our suggestions:
- Reach Out in Advance. There is no disclosed roster of CDK customers. Without contacting them beforehand, it is impossible to ascertain if a dealership in your plan might be impacted. If you intend to distribute your visits over multiple days, it might be beneficial to explore unaffected dealerships this weekend and defer test-driving vehicles at affected sites until post-resolution of the breach.
- Set Aside Additional Time Than Usual. If a dealership you aim to visit is affected, be prepared for any transaction to require more time than normal. Most dealerships can still verify credit, receive payments, and formulate agreements. However, they will be obligated to employ slower-than-usual processes.
- Contemplate Visiting on a Weekday Instead. Weekends are the most bustling period for auto dealers. Should you return during weekdays, you will contend with lesser competition from other shoppers, and dealers will potentially allocate more time to you.
Cox Automotive, the parent entity of Kelley Blue Book and Autotrader, also possesses CDK competitor Dealertrack.
