Welcome to another edition of the Car Dealership Guy Podcast Recap newsletter—the key lessons from top operators, founders, and execs shaping the future of auto retail.
Today’s guest is Kim Saylor, Senior Director of Product Marketing at CDK Global.
She breaks down why younger customers choose service providers based on online reviews, how AI is reducing wait times in service, and why mobile service is becoming a premium convenience that buyers will pay for.
Gen Z customers are proving to be highly loyal to dealerships.
Despite assumptions that younger buyers switch providers frequently, CDK's study found that 90% of Gen Z customers return to the dealership where they purchased their vehicle for service.
"If they have good service, they're over 80% more likely to buy their next car with you, where if they're not happy with service, they're only... in the 30s, low 30s."
Keeping Gen Z satisfied in service directly translates to future vehicle sales.
Gen Z wants mobile communication, not phone calls.
Younger customers prefer texting and mobile approvals over traditional phone conversations, which means dealerships must adapt their communication channels to meet these expectations.
"I have two Gen Z's at home. They're never going to call me, so I need to make sure that I'm texting them. I'm communicating with them through a mobile channel."
Meeting Gen Z where they are—on mobile devices—is essential to maintaining their loyalty.
Online reviews heavily influence where younger customers take their vehicles.
While only 35% of overall customers said reviews impact their service choice, over 75% of Gen Z and millennials rely on them when selecting a provider.
"They're reading reviews on everything….It's critical for dealers to look at their online reviews to make sure that they are hitting the Gen Z's and the younger shoppers that they want coming into their dealership."
Dealers must actively manage their online reputation to attract and retain younger customers.
Mobile service is commanding premium pricing from customers.
CDK's study revealed that 40% of customers would pay more for mobile service, with 48% willing to pay up to 10% above standard rates for the convenience.
"[We order] DoorDash food all the time, and we know we're going to pay more to have the food brought to us. It's the same type of thing. It's the experience that I want. [Mobile car service] might be the experience I need because I can't get to your dealership."
The convenience factor of mobile service justifies higher prices in customers' minds.
Presented by:
1. OPENLANE - The world’s best online dealer marketplace for used cars, bringing you exclusive inventory, simple transactions, and better outcomes. Learn more @ openlane.com/cdg
2. vAuto - As the industry’s premier provider of end-to-end inventory management solutions, vAuto gives every dealer—from a single point store to the largest groups—the data, insights, and tools they need to maximize returns from the new and used vehicle inventory investments. Known for its game-changing inventory management innovations, vAuto provides AI-powered predictive data science to help dealers see their future and consistently make the right, ROI-minded decisions with every vehicle they appraise, acquire, price, and retail. Visit @ vauto.com for more details.
3. CDK Global - Dealers—big news. CDK just leveled up their CRM in a massive way. We’re talking next-gen AI baked right into your daily workflow: Automatically following up with internet leads, surfacing buyer insights, and giving you instant AI-generated summaries of every customer interaction—no more digging through notes. And CRM Video is here. Record, send, and track personalized videos to customers—all inside the CRM. Check out the AI-enhanced CDK CRM: Visit @ cdkglobal.com/l/146251/2025-11-24/3fy2v4
Mobile service expands the customer pipeline beyond physical location.
Mobile service allows dealerships to serve customers who purchased vehicles from them but live too far away to return for regular maintenance.
"They drove to a Toyota store on the north side of Cincinnati to buy their car. They're willing to drive that [far] to buy their car, but they're not willing to drive it to continue servicing it when there [are] four other Toyota stores closer."
Mobile service recaptures lost service customers and expands the dealership's effective service area.
Nine-minute hold times are driving customers away from dealerships.
The average hold time for service appointments has increased to 9.3 minutes, with 29% of customers encountering issues like transfers or no answers when calling.
"These customers calling into the service department are your leads for the service department. So don't you want to know about everyone that's calling in? And, you know, if they hang up, still having that information about them."
AI solutions can eliminate hold times entirely and capture every service lead.
AI schedules 14% of appointments outside business hours.
CDK's AI tool, Ava, is booking appointments after hours when no human staff is available, capturing opportunities that would otherwise be lost.
"14% of the appointments that it's scheduling are happening after hours. So when there's no one there to take that phone call [is] when the customer's thinking about the need to call and schedule an appointment."
AI ensures dealerships never miss a service appointment opportunity, regardless of time.
Customers are doing everything possible to extend vehicle life.
A record 31% of customers said they're doing everything they can to keep their car running, reflecting economic pressures and the rising cost of new vehicles.
"The average age of a vehicle [on U.S. roads] is over 12 years. That's average.”
This trend creates significant opportunity for dealerships to invest in service capabilities for aging vehicles.
Recalls bring customers in, and 40% buy additional services.
Recalls represent a major opportunity for dealers to make first impressions and generate additional revenue, with 40% of recall visits resulting in added work.
"I bought a car in ‘24. The first time I took it to the dealership was for a recall before I even needed maintenance. So it's in some cases the first opportunity for the dealer to... make an impression on the customer."
However, many Gen Z customers avoid recalls because they fear unexpected costs, creating an education opportunity.
Fixed operations keep dealerships profitable during sales downturns.
When variable operations face challenges, fixed ops becomes the critical profit center that keeps dealerships running.
"Anytime there's a downturn in sales then the focus goes to fixed operations... it's the fixed ops department that's keeping the lights on a lot of times at the dealership."
Every dealer should focus on maximizing their fixed operations, even when sales are strong.
