How CDK Contracts For CDK Laser Printers?

Dealers often ask me how CDK contracts for laser printers. Unlike other providers for Dealership Management Systems (DMS), CDK Global from Hoffman Estate near Chicago mandates company-owned laser printers in the US and Canada. All CDK dealers are printing on “sealed” CDK laser printers.

CDK Laser Printers and Archiving System

Laser printing with CDK is not just paper management, but it’s part of the system’s archiving. Every RO, every check, every parts order that runs through a CDK laser printer is automatically filed as an image in the archiving system. Most other DMS systems archive documents as text files which in some cases prove to be insufficient for (OEM) auditing purposes.

CDK has introduced multiple laser printing options over the years. Since the product bundles and names have changed, the different CDK laser alternatives can be confusing. Here are the most current choices and what differentiates them. They only work exclusively. Generally, you cannot mix them for the same store. All lasers have to be on the same delivery model.

1. CDK Document Cloud Lasers:

This is the newest CDK laser printer delivery model. We can assume this model will remain for both the CDK Drive and the newer Drive Flex DMS.

Don’t get confused with the prefix “Document Cloud“, because it also refers to other CDK product bundles. Those can include the new archiving licenses, the CDK Digital Contracting for F&I (CDK Document Cloud Plus), and the CDK document Express Scanning (CDK Document Cloud Professional).

Rented Doc Cloud Lasers

Document Cloud lasers are mainly sold as rented equipment. That allows for smaller upfront charges (only shipping and installation), but higher monthly service fees. The recurring fee covers the printer maintenance and the print consumables, i.e. paper, black/white toner, and shipping fees for paper and toner.

2. CDK Laser Two-Pack:

The CDK Laser Two-Pack model is only available as a rented option. If dealers contract for CDK Laser Two-Pack, they do not own their CDK lasers.

Laser Two-Pack is not available for new sales. However, dealers can maintain them if already existing and in case the economics for an upgrade to Doc Cloud Lasers don’t work out during renegotiations.

Laser Two-Pack Print Volume Tiers

Laser Two-Packs are available in different volume tiers. The higher the number in the description behind “Two-Pack” (varying from 1000 to 5500), the more printouts dealers produce per month. Thereby the higher the monthly support/rental fee. Dealers that have 5500 or more printouts per month for the respective laser (therefore named 5500 after “Laser Two-Pack”), could print unlimited paper (however without receiving unlimited supplies). There is no higher volume tier than 5500.

Unlike the variable click-charge model (see option 3. below), the Laser Two-Pack option comes with a monthly flat-rated service fee. This monthly will not change unless dealers acquire more CDK lasers, or start printing more (in later case CDK could bump dealers up to the next higher volume tier with higher monthly service fee).

The Laser Two-Pack fee covers both the laser maintenance fee and the consumables (paper and toner). The shipping cost for the paper and toner cartridges is not included in the monthly flat rate.

3. CDK Laser Click Charges:

The Click Charge model is similar to the Laser-Two pack as it is only available as a rented laser approach. You cannot purchase a CDK laser and have it on Click Charge or Laser Two-Pack. The Click Charge option comes with paper/toner supply (but without the shipping costs for paper/toner).

Variable Fee Per Printout

The difference to the flat rated monthly fee of a Laser Two-Pack approach is the variable Click Charge ranging mostly from 5.5 – 6.9 cents per black/white copy printed per laser.

As the nature of a per-click-fee dictates, dealers pay monthly changing fees depending on the amount of paper printed (and the click charges negotiated). The more dealers print, the more they have to pay.

On top of the monthly Click Charge, dealers are responsible for a flat laser “License Fee”. Since the Click Charge covers the consumables, the License Fee covers the maintenance.

This model is not sold anymore. But, dealers can maintain it if it’s existing and if the economics for the Doc Cloud Laser upgrade don’t work out.

4. CDK Laser Font-Software:

Besides the described rented CDK laser models, dealers could also purchase laser printers from CDK in the past. In this case, dealers paid higher upfront charges due to the actual laser gear.

The monthly fees however can be significantly smaller than options 1-3 above. There is still a “Font-Software” charge for the maintenance, but there is no rental fee.

With Or Without Print Supplies

The font software license was available as a “Purchase 2” model that allows for receiving paper/toner from CDK. It was also available without supplies. In that case, dealers replenish their own paper but may have to buy toner cartridges from CDK for a fixed rate (potentially higher than $165 per cartridge). The costs for color laser toner are higher than for Black/White toner.

All recurring charges on CDK lasers are non-cancelable.

Review Non-Laser Printers

The above CDK laser printer choices do not apply to forms, impact, or slave printers like Okidata models. Dealers can only purchase them from CDK (no rental). The monthly maintenance fee, however, is cancellable, if not desired. In case of a printer breakdown, CDK could provide assistance on a Time and Material base. Dealers could also use a printer supplier like ACE Solutions or mydealerdirect.com to source reconditioned or refurbished CDK laser printers.