Asbury Connects All Stores to Tekion System
The dealer group finished linking its nationwide store network to Tekion's cloud-based dealer management platform, with used-car volume the next target.
Updated on Nov. 2, 2026 in Buying/Selling
Asbury Automotive Group completed connecting every active store to Tekion's cloud-based dealer management system in the third quarter, linking the last 47 of its 158 stores. The company plans to pursue greater used-car sales volume from off-lease vehicles in 2027.
Why it matters
The move away from legacy dealer software reflects broader efficiency pressure across the auto retail industry, and it sets up a larger wave of lease returns that will flow into used-car lots. For buyers and sellers, the shift signals how dealerships may approach used-vehicle pricing and inventory in the coming years.
Asbury linked 47 of its 158 stores to Tekion in the third quarter, at a cost of $6 million in implementation expenses and $1 million for running dual systems. Industry lease maturities are projected to reach 3.1 million units in 2027, a 29.3% increase over 2026.
The players
Asbury Automotive Group
Asbury Automotive Group is a publicly traded automotive retailer that operates a large network of franchised dealerships across the United States.
Tekion
Tekion is a technology company that provides cloud-based dealer management and retail software to automotive dealerships.
CDK Global
CDK Global is a provider of dealer management system software whose summer 2024 outage prompted many dealers to reconsider their systems.
The details
Asbury began a limited pilot of Tekion's cloud system in January 2024 while still using CDK Global, then phased out CDK after a major CDK outage in summer 2024 caused by a cybersecurity incident. Stores that have passed a six-month break-in period posted higher-than-average fixed operations gross profit and better-than-average reductions in SG&A as a percentage of gross profit.
Timeline
January 2024: Asbury began a limited pilot of the Tekion cloud system.
Summer 2024: A CDK outage prompted a full phase-out of CDK services.
September 30, 2025: The EV leasing tax credit was phased out.
October 27, 2026: Asbury announced the Tekion milestone on its Q3 earnings call.
Q2 2027: Full operational benefits from Tekion are expected to arrive.
Roadmap
Asbury's full conversion to the Tekion Automotive Retail Cloud follows the move by large dealer groups away from legacy DMS providers after CDK's 2024 outage disrupted operations. The shift comes as industry lease maturities climb sharply, with projected 2027 volumes rising 29.3% over 2026.
Shoppers may see more used-vehicle inventory from off-lease returns as lease maturities climb toward 3.1 million units in 2027. Buyers comparing used cars should expect dealer pricing to be shaped by how efficiently their stores now operate on newer software.
The takeaway
Dealers adopting cloud-based systems are gaining efficiency, and that efficiency may translate into more competitive used-car pricing for buyers. Shoppers considering a used vehicle in 2027 may find more off-lease options as lease volumes rise.
What happens next
Asbury's Tekion operational benefits are expected to fully arrive in Q2 2027, when the company also expects to capture more used-car volume from off-lease vehicles.
Further reading
For more on how dealers are selling used vehicles, see Buying/Selling coverage across the United States.
Source note: This article includes information reported by Ward's Communications Online.
