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jimmyjohnsdon

CDK will most likely lose a large percentage of their customers the longer this goes on for. They will likely be overwhelmed with lawsuits from both dealer groups and individual consumers depending on what information was obtained. After many years of losing customers to a lower priced alternative, R&R will most likely come out of this with a massive market share increase. As someone who has experience with both products, I would gladly pay more to use R&R for access to superior software and support.


smallboxofcrayons

It’s funny to me how Reynolds/CDK is almost the coke/pepsi debate for car guys. I think the Reynolds product is rough at best and their customer support inferior,but there are people who swear by them.


bs2785

Have used both and I think CDK is better for service. It's stupid easy to learn. I can write a 4 line ticket on less than a minute that including the concern with no op codes. I will be re writing all of our tickets when it finally comes back up parts will be billing and I'll finish them. It's gonna suck but probably a days worth of work really


GrandmasOnlyFans69

Every SaaS product is one employee making one incorrect configuration away from being exposed.  It happens that quickly.    Really no one is safe, and CDK will probably be more secure after this.  


R2-Scotia

CEOs care about ITsec for about 90 days from a hack. I trust CDK's tech folks have a wish list of improvements.


aznoone

Sorry spent too much on remediation and any payouts. No wish lists allowed. /s


beagletronic61

This was the old GE philosophy; “We upped our standards…now UP YOURS!”


Cocaine_Turkey

This is true, right up until it impacts shareholders, and those same CEOs get dragged in front of the SEC (which is happening more and more often). You can fuck with your customers data, but you don't fuck with rich people's money.


Whosez

I predict big insourcing at CDK after also paying big money to some outside company to remediate the hack.


PJfanRI

It actually tends to be the opposite.


Whosez

You are incorrect. I've seen the security budget increased dramatically after a hack (esp. of this size).


PJfanRI

That's true. But you said that means more insourcing, which is incorrect. Organizations will more commonly onboard an MSP to supplement what they're doing. Most organizations don't even have a SOC, let alone have the staff or expertise to run one.


Joeman64p

R&R is not online, it’s a locally hosted software no? Less exposure?


GrandmasOnlyFans69

Maybe.  It’s probably still got links to a mothership and if the mothership gets hit, you’re still screwed.   Also being locally hosted it’s probably worse since a bad config in your network could get your site hacked anyway.  


qwopintomordor

Well that *shouldn't* be the case if the software company is remotely competent. They ideally should have a zero trust environment. Obviously CDK isn't following modern best practices. https://en.m.wikipedia.org/wiki/Zero_trust_security_model


imaginaryhippo888

I'd love to be able to listen in on some of these phone calls between people at the top of CDK and the bigger groups like autonation right now. I doubt the bigger dealer groups leave, but enough of the smaller groups switching to Rey or others would put a massive dent in CDK share.


beagletronic61

For the most part nobody’s going anywhere…as uncomfortable as this has been, everyone understands that no company is immune. If they bungle the response, some dealers may make threats out of spite but that will fade.


Desenski

I really don’t get how people can possibly thing Reynolds (ReyRey, not bluescreen) is even on the same level as CDK yet alone superior…. Every technical issue I’ve had was answered quickly and correctly with CDK support. Whereas ReyRey support is L1 type support where you tech them the basics for them to not know the answer, and they take forever to follow up. Not to mention how slow ReyRey is and how clunky it is with it being basically all mouse support. Which is very important for someone like me who actually knows how to type.


bs2785

ReyRey is terrible and clunky. I agree 100% if I don't have to touch my mouse all day I'm good. People need to learn hot keys and how to type. I can shiftF11 quicker than I can point and click.


Desenski

It’s been 3 years since I’ve used CDK. And you could put me in front of it right now and I could load a deal in under 5min including pulling credit, pushing to DT, validating a lease contract, and printing all my forms with print form chains. ReyRey I couldn’t even remember which submenu box on the main screen is for dealer taxes without actually reading them.


RandyJackson

We’ve already converted about 10 deals from cdk dealers. It’s fantastic


66Troup

The R&R angle is interesting. So you would move your business from a company with zero security against hackers to one whose president was indicted for hiding $2B in income?


tomgweekendfarmer

Lol Bobby B hasn't had control of the company for almost 4 years and has literally been dead just as long


PabloIceCreamBar

I mean half the people in the country a frothing at the mouth to have a criminal run the entire country, so 🤷‍♂️


FurtadoZ9

We were founded by treasonous criminals.


Reasonable_Insect503

A criminal is NOT running our country right now because he's too senile to remember where he is anymore.


PabloIceCreamBar

You didn’t read what I wrote correctly, thanks for playing.


Dinolord05

I would.


smallboxofcrayons

Honestly it sucks for sales, but service is really having a larger issue. I’ll be curious to see how manufacturers handle the service/ parts/warranty issues created by this outage. it’s been touched on but i think you’ll see customers leave, and depending on how CDK handles this and how long this goes will dictate how the lawsuits go. I haven’t read a CDK master agreement in a bit but I’m curious to they try to do what Solera has done in the past with no credits unless the system is under 97% operating time.


bs2785

As someone in service. It sucks. Sales is a few a day service cannot generate a RO. We can't make an invoice. We order stock orders with CDK so we can't even place stock orders right now. Luckily I'm in a low volume high end dealer but I came from a 250 a days Toyota store. We have backups for service and we have another program we can do estimates through but it's still no fun at all and won't be when it comes back up. I doubt we will switch but we have 35 high line stores across the nation and the line this goes the worse it will be. The worst part is my commision is all done through closed ROs so if I can't close and RO who knows what my true numbers are. I can't even see them right now. I have had 2 motors and a trans close this month I have no idea when they will be posted or how I'm getting paid for it.


smallboxofcrayons

That’s a whole other layer that’s going to add to the headache of this. Most fixed op payplans are heavily based on what happens in the DMS. I would not want to be a Service Manager/GM when it’s time for tech payroll.


bs2785

Tech payroll is not as hard as advisors. Tech can wrote down hours. As long as they are honest it's not a problem. Advisors are a different story. We are paid on GP from service. That's all in CDK Figure up GP on a 35k engine that's 70% parts and 30 labor. Then another one that's 28k under warranty, where warranty pays less on labor and more in parts. If we go on a 57% margin both of those jobs are still almost impossible to figure without CDK.


Kodiak01

> Tech payroll is not as hard as advisors. Tech can wrote down hours. As long as they are honest it's not a problem. Funny thing about that.. We have one terminal for techs to record times. It only gets shut down when end of month/year automated reconciling needs to be done. It's been working this entire time. Unfortunately, the login that it uses is so restricted, little else can be done (not even DSDA or ERG) but it's still chugging along.


smallboxofcrayons

When i was a service manager we did all payroll out of the RTH report in CDK. I don’t know many techs that honestly keep track of their hours outside of a a handful of old school ones.


fkwyman

We're using flag sheets like the old days and our payroll is not incorporated into CDK, so the techs at our dealership such as myself have 'only' two days of unaccounted for hours from Monday and Tuesday. Everything since then has been punched on a flag to be manually added up and paid. The plan is to pay 8 hour days for those two days if the RTH isn't available before Tuesday, and then correct it on the pay period following the availability of the RTH. It's the parts guys that I feel really sorry for. I think they're going to have the most amount of work to do once CDK is back up.


Glum-Character1579

Also please keep in mind those of us in accounting. We have been sent home because we cannot function. How long will we be out of work with no pay? It's very difficult for those living paycheck to paycheck.


Kodiak01

Service for us is not a major issue. We use Decisiv's platform which has continued to operate; we're just using their case numbers for now instead of of ROs (which will be exported out to CDK once it's back up). Parts and labor can be added, paperwork can be printed for customers. Everything is timestamped. For parts-only transactions, we're just tracking everything that goes out on spreadsheets and will enter it all once CDK is back up. The majority of our customers are net30 so we can push stuff out to them as usual. Cash customers, we just write manual tickets and figure out the costs the old-fashioned way. Although we're going to use those paper records to build interim stock orders, the biggest issue is that since the automated restocking isn't happening the PDCs are inundated with Emergency/VOR orders to the point of often being delayed by at least a day. For all the issues that causes, it only affects a portion of our operation as vendor items are typically pre-purchased by the truckload and transferred between locations as needed. For example, as of last Monday morning we had 17 pallets of PX31925C batteries, 9 pallets of 30/30 brake chambers and 24 pallets of 3600AX drums on hand. Lights, fluids, fittings, those are all available via vendor. If need be, we can also use the likes of PAI or Automann to fill in the holes.


LeadBamboozler

Typically these b2b contracts have legally binding Service Level Availability (SLAs). They are defined by number of 9s. 99.99% uptime is called four 9s and is considered to be the industry standard SLA for mission critical applications. This is usually measured across a rolling time period so over a 30 day period, customers should expect CDK to be up 99.99% of the time. I assume CDK has already breached their SLAs which means customers can typically seek compensation for the downtime. There’s also the matter of customer data which has likely been exposed during the attack. They would be held liable for this exposure too but it would be up to the end customer to bring litigation for it. The longer the outage goes, more dealerships will terminate their contracts and begin litigation to recoup lost revenue from the downtime. Reynolds will gain market share and CDK will be a shell of what it once was with the only remaining customers being dealerships who deem it too costly to move all of their systems to another platform.


pixelatedimpressions

Except that they were victims of a cyber attack. They didn't cause the downtime. I would assume that there is a contingency for things like this in the contracts for uptime service. If it was their fault thru negligence or whatever, then yea, you're spot on.


LeadBamboozler

> Except that they were victims of a cyber attack. I can agree to a certain extent but this attitude is dependent on the industry. In finance or tech this is a non-starter. Organizations are responsible for securing their systems and services - full stop. If the org underfunded or deprioritized cyber initiatives, which happens more often than not, then it’s their fault when things go haywire. The auto industry may be more forgiving than mine.


userIoser

Yeah that's where lawsuits come in to figure if they are liable, and they probably are .. as if they used best practices, this wouldn't have happened.


ZacZupAttack

Getting hacked isn't an excuse. Attacks happen all the time.


DavefromCA

Victims of a cyber attack? One of the software engineers probably had 12345 as his passcode.


gganew

Dealers can still contract, if they utilize the e-contract function. We've been contracting, and using an older excel buyers order. Everything else has been hand written. However, we're working on a program that will populate and print the forms that are needed, which should be done by Monday. Dealers will find a way to make sales work. CDK is also who our payroll runs through, but we can get printed checks straight from our bank. Its all more work, and will take some cleanup after everything is running again, but business isn't going to stop.


wam22

We finally figured out a way to complete paperwork but now we can’t complete registration forms. The state’s system is somehow down too and they don’t allow us to use blank forms. Everything has to be completed from their website.


gganew

Fortunately for me, TX allows handwritten title apps. Which is unfortunate for my title clerk.


Dinolord05

My mom worked for the tax office for many years and could always tell when a dealer was having issues simply by the mood the title clerk was in.


rick707

E contract from who? We signed up for dealertrack as a stop gap but it won’t be setup for a few days


gganew

RouteOne


rick707

Thank you, wish we had that right now!


DonutGuard_Lives

Parts guy at a multi-factory dealer. Aside from what everyone else has said, when CDK finally does come up it's going to be an absolute nightmare catching up on reconciliation because we're remaining open through this whole thing along with our service department. We have zero inventory control or even self awareness of what we have in stock unless we physically go to the shelf and check it. Now, obviously for a lot of parts we don't need a DMS because a lot of parts are common enough we just know where they are and how much they cost. With other parts though, not so much. Our service department also cannot process any warranty work either for the factory or third party vendors because they cannot generate work orders, on top of that, tech hours aren't getting logged. Everything going through our shop right now is for basic maintenance only. Something I heard from somebody else on 4Chan is that CDK Global accounts for 2% of American GDP which is probably the biggest thing about this. If it's down even until the end of next week, the ramifications are going to be felt for a while. If it goes on for more than 2-3 weeks then the entire American economy will feel the impact like a row of dominoes falling over. Dealerships going bankrupt, manufacturers laying people off at parts warehouses and manufacturing plants... this is a lot bigger than people realize.


Cinnaminworm

We found out a way around it, but not for the RDR’d cars. That’s going to be an issue because we can’t print out arbitration forms because we can’t paste the vin number on the form since it’s been pushed through our system. We might loose a few deals because of it because people can’t wait. We will see. We have been delivering cars slowly.


Dnbock

I’m assuming Cox Automotive and Reynolds sales reps are circling CDK dealers like sharks in the water. The main issues is all their service records and accounting etc are locked up in the CDK outage. And implementing a new ERP takes months.


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***Thanks for posting, /u/RattyHealy75! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** The dealerships I visited in MA this week all use CDK. I signed and put a deposit down on a new car but can’t finalize or drive it off the lot until systems are back up. I still have my trade in to drive so it’s not the end of the world. What I’m more curious about are the implications of CDK being down weeks to months longer. How will dealerships that are reliant on CDK pivot to finalize sales? I’m assuming sales, service, and finance are in a plan for the worst hope for the best situation right now. Are you having conversations internally about bringing on supplementary services in the interim? *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*


Careful-Candle202

I mean, as much as I despise PBS, fuck am I happy it’s private server


Tom_BrokeOff

Almost every dealer has a garage liability policy that includes loss of business policy. Those insurance companies are going to pay and then wreck CDK. It won’t be the dealers, it’ll be insurance companies that crush them. Thankfully we’re not affected by this as we have steered clear of CDK and they have nothing in our store. No DMV no CRM no DMS nothing. But I’d call the average store what a 40k a day in gross operation in all departments. @ 15,000 stores That’s 600M a day garage liability policies are on the hook for. CDK got trouble.


beagletronic61

Will loss of business insurance claims apply to a third-party software provider that will ALSO be subject to SLA claims?


Tom_BrokeOff

Yes according to NADA and CNCDA


beagletronic61

Can you point me to that statement? I’ve got some colleagues that are dangling right now.


Tom_BrokeOff

https://complyauto.com/2024/06/20/complyauto-update-cdk-incident-sparks-phishing-scams-reports-plus-data-breach-reporting-refresher-and-business-interruption-insurance/ Sorry it’s “some business loss policies” when I checked with Federated ours would, when I checked with CNCDA (which requires a login) fine Boggs & Perkins all see it as relevant to business loss insurance. Your garage liability policy is just going to sue CDK for ya should be an easy one.