Fragmented Technology Systems Frustrate Auto Dealers, Leading to Lost Time and Revenue

May 6, 2025

Today’s auto dealers face a myriad of frustrations, challenges, and obstacles, particularly tied to the lengthy transaction times for sales transactions with car shoppers. The efficiency of these transactions is paramount, especially in light of current tariffs that pose a significant threat to the bottom line. Dealers must ensure every possible efficiency in their business operations to remain competitive and profitable.  

Impact of Lengthy Transaction Times 

One of the primary frustrations for auto dealers is the impact of lengthy transaction times on customer satisfaction and overall business efficiency. According to a recent survey of auto dealership professionals, 30.4% of respondents indicated that the lack of integration between CRM and DMS systems has a significant impact on transaction speed, with transactions averaging about three hours. Additionally, 29.4% reported a severe impact, with transactions averaging more than three hours. These extended transaction times not only frustrate customers but also reduce the number of sales that can be completed in a given period, directly affecting the dealership’s revenue and profitability1. 

 Time Losses Due to Inefficiencies 

The inefficiencies in current systems also lead to substantial time losses. The survey reveals that 39.8% of respondents estimate losing 5-10 hours per week due to inefficiencies, while 10.7% report losing more than 10 hours per week. This lost time translates into lost opportunities for sales and customer engagement, further exacerbating the financial strain on dealerships. In an industry where margins are already thin, these inefficiencies can be detrimental to the overall health of the business. 

 Customer Reactions to Fragmented Systems 

Customer reactions to the use of multiple apps and systems during the sales process are another significant challenge. The survey indicates that 40.8% of customers are neutral, while 30.1% are dissatisfied, and 9.7% are very dissatisfied with the fragmented systems. This dissatisfaction can lead to a negative customer experience, reducing the likelihood of repeat business and damaging the dealership’s reputation. In an era where customer experience is a key differentiator, dealerships cannot afford to overlook the importance of streamlined, efficient systems. 

 Financial Impact of Disconnected Systems 

The financial impact of disconnected systems is also noteworthy. The survey shows that 40.8% of respondents estimate their dealership spends $5,000-$10,000 annually on printing costs, paper costs, and other expenses related to disconnected systems. Another 30.1% spend $10,000-$20,000 annually. These costs are not only a drain on resources but also highlight the inefficiencies that plague the current systems. By integrating CRM and DMS systems, dealerships can significantly reduce these expenses, freeing up resources to invest in other areas of the business. 

 Potential Time Savings from Integration 

Dealers are aware of the potential time savings from integrating their CRM and DMS systems, with 79.6% of respondents acknowledging the benefits. However, the challenge lies in implementing these integrations effectively. The survey results underscore the need for better data synchronization, improved user interfaces, faster transaction processing, and enhanced security features. Addressing these areas can lead to significant improvements in operational efficiency, customer satisfaction, and overall profitability. 

 Cybersecurity and Data Security Threats 

Beyond the immediate operational challenges, the lack of efficiencies in systems poses a serious threat to cybersecurity and data security. The survey reveals that 40.8% of respondents are very concerned about the security of customer data with their current CRM and DMS systems, while 10.7% are extremely concerned. This concern is well-founded, as fragmented systems can lead to data breaches, exposing sensitive customer information and potentially resulting in costly legal and reputational consequences. 

 Mitigating Security Risks 

To mitigate these risks, dealerships must implement robust security measures. The survey indicates that 40.8% of respondents have encryption (secure data in transit) in place, while 39.8% conduct regular audits, and 12.6% provide employee training. Secure access controls are also crucial, with 40.8% of respondents utilizing these measures. Despite these efforts, the survey shows that 60.2% of respondents are unsure if all customer data received is security compliant. This uncertainty underscores the need for comprehensive security protocols and regular assessments to ensure compliance and protect against cyber threats. 

 Business Impact of Security Breaches 

The business impact of a security breach or ransomware attack can be devastating. Not only do dealerships face the immediate costs of addressing the breach, but they also risk long-term damage to their reputation and customer trust. In an industry where trust is paramount, any compromise in data security can lead to significant financial losses and a decline in customer loyalty. Therefore, dealerships must prioritize cybersecurity as part of their overall strategy to enhance efficiency and protect their business. 

 The frustrations, challenges, and obstacles tied to lengthy transaction times for sales transactions with car shoppers are multifaceted and have far-reaching implications for auto dealers. Ensuring every possible efficiency in business operations is crucial, especially in light of current tariffs that threaten the bottom line. The survey results highlight the need for integrated CRM and DMS systems to reduce transaction times, improve customer satisfaction, and enhance operational efficiency. Additionally, addressing cybersecurity and data security threats is essential to protect sensitive customer information and safeguard the dealership’s reputation and profitability. By prioritizing these areas, auto dealers can navigate the complexities of today’s market and position themselves for long-term success.