DMS Outage Could Ding June Sales
One forecast expects big effect while another sees deliveries up.

CDK Global said this week that it doesn’t expect its software systems to be back up for all dealers before June 30.
Pexels/Erik McIean
The CDK dealer management system shutdown is being blamed in one forecast for a down June vehicle sales volume, while another prediction doesn’t expect that level of impact.
A joint J.D. Power-GlobalData forecast sees June deliveries down up to 7% year-over-year, with the retail portion down as much as 8%.
It characterizes the DMS outage, which has resulted in some dealers resorting to handwritten sale document processing, as “significant.”
“Because of the disruption to dealer software systems, June sales will not be reflective of actual consumer demand for new vehicles. Instead, a significant number of sales that would have occurred in June are now likely to occur in July,” said J.D. Power’s Data and Analytics Division President Thomas King in a press release on the forecast, which the companies qualified because of the uncertainty over exactly when CDK’s systems will be restored and how dealers will compensate in the meantime.
J.D. Power said most delayed June sales will likely be finalized next month and expressed confidence that dealers will adapt as they did during the pandemic to “rapidly identifying ways to deliver vehicles to buyers.”
The forecast put combined retail and nonretail sales to be between 1.2 million and 1.3 million, down about 3% to 7%, for a seasonally adjusted annualized rate of 14.7 million to 15.4 million. It said the retail portion is down an estimated 3% to 8% to about 1.1 million for the month.
Meanwhile, the S&P Global Mobility forecast puts June sales up by a modest 1% despite the shutdown, which it acknowledges “could hamper some of the progress realized earlier in the month” along with a Toyota-Lexus stop-sale.
“June auto sales are expected to sustain the recent progress in the market” due to expanding inventory and incentives, said Principal Analyst Chris Hopson.
CDK said this week that it doesn’t expect its software systems to be back up for all dealers before June 30.
“Should you need to make alternate plans for your month-end financial close process, you should do so,” said spokesperson Lisa Finney.
LEARN MORE: 2024 Vehicle Sales Still on Their Way Up
Originally posted on Auto Dealer Today
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →