Three Ways CDK Drive Maximizes Cash Flow and Profits

The Chuck Nash Auto Group in San Marcos, Texas, is known for doing things a little differently. After all, not only has the group been family owned and operated for more than 40 years, but it also offers three sales and service locations, a collision center, auto insurance and a fleet department.

There are a couple of secrets to Chuck Nash’s success. First, the group is known to avoid pressure sales and instead believes that if its people treat their customers as family, lifelong relationships follow.

Second, the dealership knows how to use data to maximize cash flow and enhance profits. Its partner? CDK Global and its Drive Dealer Management System (DMS). Donna Bost, who as comptroller watches every incoming and outgoing penny, says that she sees three main ways in which CDK Drive helps the dealership manage differently — and better.

1. The Power of Flexible Reports

CDK Drive allows dealerships to take any standard report and customize it to meet individual needs. “So not only do we have the information in the moment that it’s needed, but we also have it in the format and detail that we want,” Bost explains.

She says that they especially like the end-of-the-month reports. “I can go to the sales managers’ reports and see the finalized deals in accounting. Then I can compare them with the manual reports as well as the sales versus accounting reports and sales adjustments, and see exactly what differences exist — if any,” she says, adding that they can review numbers for front gross, back gross and each product.

The reports help F&I numbers match too. “If our DMS didn’t provide a sales versus accounting report, the sales managers would have to prove their numbers all over again. If there are differences, we know exactly what they are,” notes Bost.

The auto group also uses trend reports for expenses by department, comparing the current month with the previous month and this year’s numbers to last year’s. That way, it’s clear if expenses are over or under and easy to see where and explain why.

2. The Power of Managing Contracts in Transit (CIT)

As is true with any dealership, managing cash flow is top of mind. Every week, the managers meet and review every deal that hasn’t yet been funded and what’s holding it up.

“We have three locations, so even though we’re the same company, we have CIT reports for each location,” she explains. “With Drive, we’re able to track every dollar and ensure that our deals are getting funded accurately and timely. We’re also able to hold our F&I and sales managers accountable,” Bost says.

And the numbers aren’t projections of any kind. The group uses finalized deals only — the real picture — which also reflects in real time any monies received from the customer or lender.

And the numbers aren’t projections of any kind. The group uses finalized deals only — the real picture — which also reflects in real time any monies received from the customer or lender.

3. The Power of Increasing Service Volume

The Chuck Nash Auto Group uses two applications that integrate seamlessly with CDK Drive: ServicePricing, which provides accurate manufacturer parts and vehicle data, and CDK Service, which enables instant integration and improved processes for the service advisor, Parts department, technician and, ultimately, the customer. CDK Service also enables service history follow-up with the customer on any declined work or work that’s needed later. “It’s not just about profit; it’s equally important that the customer is taken care of properly and is completely satisfied with our dealership,” says Bost.

Adding to the overall customer experience, service advisors meet customers in the lane and perform walkaround inspections using a tablet in the same amount of time that it takes most systems to pull up the customer’s information. Advisors also use a streamlined process of selling additional work and can easily create ROs and schedule service appointments.

And when clients miss those appointments, Customer Relationship Management (CRM) staff members at Chuck Nash step in to help recoup that potentially lost profit.

The Service Daily Log in CDK Drive provides the necessary and actionable information because it shows the day’s pending service appointments as well as any that are missed. “And that’s what CRM employees need to know in order to make that critical call to reschedule that appointment right away,” says Bost.

Running a business this efficiently and profitably requires refined processes and the right kind of information served up in the right way. “CDK Drive allows us to make better decisions because we know what’s going on in real time. We know with confidence that our dealership is performing at its best,” she concludes.

"CDK Drive allows us to make better decisions because we know what’s going on in real time. We know with confidence that our dealership is performing at its best.”

— Donna Bost
Comptroller, Chuck Nash Auto Group

Make sure that your DMS helps you manage your business better.

­If your DMS isn’t delivering the data you need, customized the way you need it, how can you make the most informed decisions for your dealership? Ensure you’re not missing any of these other important functions.