Today, it was announced that CDK has purchased Auto/Mate. I expect this action to create a major disruption in the dealer management system (DMS) industry.
First, there is now one less option for dealerships to choose. Second, this purchase isn’t an effort to combine two smaller players in hopes of making a bigger impact in the marketplace. Rather, it’s a scenario in which one of the big 2 DMS providers eliminates another legitimate option.
History shows that this kind of acquisition often has a negative impact on all buyers, both customers and non-customers alike, because as supply shrinks, prices tend to rise and quality tends to fall. Buyers get less flexibility and innovation often slows.
Why? To get the ROI (return on investment) needed to offset the acquisition costs, the company will focus on consolidation of platforms, which causes changes in functionality, workflows, etc. A consolidation of people is also common, often resulting in adverse impacts on customer support and account management. With the focus on offsetting the cost of the purchase, expect investments into the product and services to be greatly curtailed.
Yes, expect disruption. And consider your options.
At Autosoft, we remain committed to dealerships and the DMS industry. We are always seeking ways to improve our DMS and our industry.
- We’re currently rolling out a new platform that we believe will become the benchmark for the industry.
- Our customer service levels are unsurpassed and set higher standards for everyone else.
- We provide flexibility for you to choose the partners YOU want to do business with.
- And we provide it all at an affordable price.
So, if concerns have already entered your mind, give us a call. We’ll help you understand how Autosoft will save you time, lower your costs, and increase your profits. It’s why we’ve been named Highest Rated DMS three years in a row by DrivingSales.