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CDK launches new DMS along with new pricing model

CDK Global Inc. is rising a new dealership government complement with a downturn-sensitive pricing indication as it tries to interest to smaller retailers and branch patron defections, a DMS hulk said Thursday.

Instead of a prosaic monthly charge, a new DMS, called Drive Flex, comes with a price that varies any month depending on a series of vehicles sole by a dealership, a volume of correct orders created by a use dialect and a series of worker users on a system.

It’s a “pay-by-the-drink” plan, CDK CEO Brian MacDonald pronounced in an interview.

If sales tumble since a altogether marketplace tanks, a dealership’s code runs into headwinds or even if that month is always a diseased one, a monthly price will dump in tandem.

“With this non-static pricing model, we are putting ourselves in a position to advantage when dealers are carrying a good month and also to float a downturn with them,” MacDonald said. “We’re aligning ourselves with a dealer’s success.”

Drive Flex represents CDK’s latest step in a augmenting efforts to residence dual weaknesses that rivals have exploited: difficult billings and a notice that it is overpriced, generally for smaller dealership groups. The pierce comes as a DMS marketplace prevalence of giants CDK, of Hoffman Estates, Ill., and Reynolds and Reynolds, of Dayton, Ohio, is being challenged by systems from Cox Automotive, Dominion Dealer Resources and others.

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While Drive Flex is tailored quite to smaller dealerships with one or dual rooftops and labelled competitively for that segment, it is a full DMS with all a record a dealership currently needs, CDK executives said.

“It’s a full functioning DMS that runs a store out of a box,” pronounced Ron Frey, CDK arch plan officer.

He noted, though, that CDK had found that some smaller dealership groups didn’t need all of a functions that incomparable groups employed in CDK’s other DMS offerings. So for a smaller impending clients of Drive Flex, “we found a change for them” while providing all of a core functions many used during a dealership, he said.

That is only one approach that Drive Flex reflects CDK’s new “We’re Listening” campaign, Frey said. “This is what a marketplace is seeking for: some-more variations in pricing.”

Because a complement was designed around a dealership-user experience, he added, a time compulsory for doing and training when a complement is commissioned will be “remarkably different.”

For example, MacDonald told Automotive News, a complement was built so as to condense a time indispensable for information emigration from a before DMS to a newly commissioned Drive Flex complement from “weeks [with progressing systems] to hours.”


With Thursday’s announcement, CDK will recover Drive Flex to an already-selected organisation of dealerships to commander a complement by June. CDK will denote it during a NADA gathering in Las Vegas Mar 22-25, and start holding orders after NADA. The tangible rollout to buyers will come after June.

Drive Flex is a cloud-based DMS with new interfaces and enterprise-level security, CDK Chief Technology Officer Rajiv Amar said.

For many of a DMS offerings on a market, “the usability is severe — you’ve got to go to 5 opposite screens to do an action,” Amar said. “We pronounced workflow unequivocally matters. Make it probable on a singular screen.”

The complement also offers “modern focus programming interfaces that capacitate easy formation to other program offerings, to put a play in control for destiny expansion and innovations,” CDK pronounced in a statement.

Drive Flex has no ties to Auto/Mate, a DMS provider that is generally clever among one- to two-rooftop dealership groups. CDK is in a routine of appropriation Auto/Mate, in partial to improved offer that niche. The understanding is still going by regulatory approvals.

Separate from a Auto/Mate move, “we’ve been innovating this, meaningful there’s a need for creation in DMS,” MacDonald said.

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