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3 ways the CDK cyberattack is affecting car buyers
The ransomware attack on CDK Global is not only hampering car dealerships nationwide — it’s also complicating life for car buyers.
Some 15,000 dealers rely on CDK’s dealer management software to run their business, including handling various aspects of buying or leasing a vehicle, such as adding dealer incentives and generating a discount for trade-ins. But last week’s cyberattacks are disrupting the sales process, experts told CBS MoneyWatch, while also throwing a wrench into what is a major financial decision for consumers.
Here are three ways the CDK incident is impacting car buyers.
Delays in buying a vehicle
Car dealerships use CDK’s software to track what vehicles are on their lots, conduct credit checks, generate interest rates for auto loans and complete sales contracts, among other functions. But the attack on the platform has forced dealership staff to perform those tasks by hand, greatly slowing the process of buying or leasing a car, Jessica Caldwell, head of insights at Edmunds, told CBS MoneyWatch.
“If you’re bringing a check to the dealership or cash, then you’ll be OK,” she said. “Otherwise, you have to bring your patience because it’s a real headache.”
One way car shoppers can expedite the buying process is to call ahead to a dealership and specify what vehicle you’re looking for, enabling staffers to see if it’s in stock, said Jennifer Newman, editor-in-chief of Cars.com. Shopping around for an auto loan, perhaps with a bank or credit union, can also speed things up.
“Having a pre-approved loan on hand will allow you to keep the car deal moving forward should that be an issue for the dealership,” she said. “However, keep in mind that often the best rate may come from an automaker, which is only available through the dealership.”
Prepare to visit the DMV
Once someone makes a purchase at a dealership, the CDK system automatically registers the vehicle at the local Department of Motor Vehicles (DMV). Agents at the DMV then generate the official registration paperwork, including the new license plate.
But that process is also taking longer following the hack, the experts said. With CDK platform down, Caldwell said she has heard that some dealers and customers have resorted to trooping down to their local DMW to register a new purchase in person. That means longer lines at the DMV, Caldwell said.
To be sure, such hitches should be resolved quickly once the CDK software is fully functioning again. But that could take several more days — the company told dealerships on Tuesday that all dealers won’t be back online before June 30.
Longer waits for vehicle service
With CDK down, it’s taking dealer repair shops longer to service vehicles, experts said. That’s because dealerships use CDK’s software both to schedule service appointments and to keep track of what car parts the shop has available to complete repairs.
For now, some dealer service staff are using spreadsheets and other online tools to keep things moving, but that’s a band-aid, Caldwell said.
“If you’re a major car dealership repair shop, you’re doing many fixes per day,” she said. “If you’re having to record inventory in parts by hand, that’s going to take away time you’re spending serving customers.”
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How a unique Topeka program is welcoming immigrants and helping them thrive
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How a unique Topeka program is welcoming immigrants and helping them thrive
Topeka, Kansas — When Angelica Chernytska and her mother Larysa left war-torn Ukraine earlier this year, they never expected Topeka, Kansas, would quickly feel like home.
“I was overwhelmed, that is how I can describe my feelings,” Angelica told CBS News.
That’s because the people of this Midwestern city have created a modern-day welcome wagon.
“It’s very rewarding to see the children thrive in school, not afraid of sirens,” said Yana Ross, president of the nonprofit group Top City Promise.
Ross, who immigrated from Ukraine herself, started the volunteer group to help new immigrants, mostly Ukrainians so far, with almost all expenses for three months, including a place to live.
Larysa said she “was overwhelmed” to walk into a fully furnished apartment the day after she arrived in Topeka.
What is unique is how the group has partnered with the community to ensure the immigrants have more than just a roof over their heads. A Latter-day Saints church welcomes the newcomers to pick up free food, while a Catholic church stores donations that furnish the homes.
Topeka Public Schools has gone as far as hiring a director of cultural innovation, Dr. Pilar Mejía, who helps ease the transition for children.
“We need to strengthen our community from the ground up, and it starts with the children, and so we need to make sure that everybody feels like they’re important,” Mejía said. “They are seen, they are welcomed.”
Topeka Public Schools now has an international flair. In the district of almost 13,000, Ukrainian and Spanish are the most common languages after English. More than 200 refugees have benefitted from the program and the helping hand extends to all nationalities.
Lisbeth Amador came from Nicaragua with her husband and 6-year-old daughter Sury. The couple have jobs, a car and a good school for Sury.
“I love it,” Amador says of her family’s new home. “…It’s different, my life here.”
The cost of welcoming a family can range anywhere from $300 to $10,000 depending on needs. Top City Promise relies on fundraising and the big hearts of the people who call Topeka home.
“Community is what makes Topeka different, because of the desire of the Topeka community to help, to help them to be successful,” Ross said.