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Watch our latest 30 minute webinar hosted by Matt Warpinski and Tiffani Stefanescu, Directors of Performance Management at Xtime, as they share actionable insights and best practices on how your dealership can address some of the most common misconceptions of fixed operations so that you and your team can improve service performance and drive revenue growth.

Learn about how overcoming these misconceptions can positively impact customer perceptions, help you sell more services by using perceived value vs. cost, and remove client mistrust to increase retention. This recorded session, which includes Q&A, will help you stay ahead with Xtime’s cutting-edge solutions.

The automotive retail industry is buzzing with talk of AI, but most dealers are still trying to figure out where they stand, and more importantly, where consumers and car shoppers stand when it comes to using AI. But even in just over the few past few years, AI adoption has exponentially increased. And now is your time to get ready for what’s coming quickly down the road.  

The latest Cox Automotive study¹ reveals that dealers who use AI intentionally are seeing real improvements in profitability, efficiency, and customer satisfaction—and there are practical ways for others to do the same.  

Let’s look at the key findings and highlight the actions you and your team should be taking as you strategize for 2026.  

Why AI Matters – What Dealers Stand to Gain 

AI isn’t just another tool – it’s a way for dealers to:

• Respond to leads faster, so fewer opportunities slip away. 
• Make smarter pricing and inventory decisions, maximizing every car on the lot. 
• Connect with shoppers in a personal way, reaching buyers with the right message at the right time. 
• Streamline daily tasks, freeing up staff to focus on selling and service. 
• See real growth – dealers using AI are 50% more likely to report stronger sales and profits. 

Whether the goal is to fix everyday headaches or find new ways to grow, AI delivers results that matter – today and for the future. 

Clearing Up the Concerns 

It’s normal to have questions about bringing AI into the dealership. The study highlights a few key points that help clear up the most common concerns: 

• Getting started is easier than expected. Over 80% of dealers who’ve adopted AI say the transition was smoother than anticipated. 
• AI supports staff, not replaces them. Automation takes care of repetitive tasks, so people can focus on what they do best – serving customers and closing deals. 
• No need to be a tech expert. Dealers found that starting small and building on early wins works, no matter the team’s experience level. 

AI isn’t here to take over – it’s here to help dealers work smarter and deliver a better experience for customers. The real risk? Sitting on the sidelines while competitors race ahead. 

The Data-Driven Advantage 

Dealers who go all-in on AI are 50% more likely to report stronger sales, smoother operations, and higher profits than those who just dabble. And if complexity is a concern, remember – 81% say getting started was easier than expected. 

Level Up: How Dealers Can Make AI Work 

Ready to take action? Here’s a few things to consider as you’re reviewing and building your AI plan with your team for next year:  

1. Pinpoint your bottlenecks. Where is time lost or opportunities missed? 
2. Set clear goals and KPIs. Define what success looks like and track progress. 
3. Build buy-in across your team. Share the plan, appoint champions, and celebrate early wins. 
4. Pilot, learn, and scale. Start small, gather feedback, and refine your approach. 
5. Make AI part of your everyday life. Encourage use in daily workflows and keep training a priority.  
6. Clean your data. AI relies on clean, connected, up-to-date information that is easily ‘crawlable’ – gain visibility by optimizing your data. 

Easy Ways to Get Started Now 

No need to overcomplicate or fear AI. There are easy ways to get moving now so that you’re not left behind: 

• Automate lead follow-up and appointment scheduling. 
• Personalize communications with predictive insights. 
• Use AI-powered pricing tools to maximize every vehicle’s ROI. 
• Review performance regularly and adjust your strategy. 

For the Road Forward 

AI isn’t about replacing people or fearing something that’s coming at us 100mph – it’s about preparing for the exponential growth in use that is inevitable. It’s time to adopt, strategize, and help your team work smarter, not harder.  

Whether you’re just starting out or already using AI to optimize your efficiencies, and ultimately, profitability, the key is to take action. The longer dealers wait, the more they risk falling behind competitors who are already seeing results. 

With AI-driven search and car buying tools, Autotrader can help you experience more sales. We’re here to partner with you as we all navigate the new world of AI together.  

Download the full eBook, “A Dealer’s Guide to Driving Outcomes with AI,” for practical tips, real-world examples, and a step-by-step roadmap to level up your dealership. 

Want to hear more about AI in automotive from Cox Automotive experts?

Register for our Dealer Partner exclusive Automotive News webinar

1: How This Study Was Conducted 

This report is based on a June 2025 survey of 516 decision makers and influencers at franchise dealerships. Additional insights were gathered through surveys and interviews with dealership leaders actively involved in AI adoption. Unless otherwise cited, all data presented in this eBook is sourced from the 2025 Cox Automotive AI Readiness Study. 

Your service customers want to take control of their experiences. This eBook discusses how dealerships can win customers by providing them with flexibility, support, education and transparency. Discover actionable strategies that will help customers feel more empowered in the service drive in ways that drive conversion, more dollars per RO, and overall service revenue. 

What You’ll Learn:  

• Empowering Buyers with Flexibility: Discover how to give customers confidence with the ability to schedule appointments and see personalized service recommendations online and also check in online when they arrive. 

• Building Trust: Learn how you can speed up ASR approvals by sharing photos and videos of recommended repairs, clearly showing the value of your team’s expertise. 

• Increasing Transparency: See how tailored pricing menus, real-time status updates and real-time communications personalize the service experience and keep customers engaged. 

Download your copy now to learn more about the drivers of customer satisfaction during the financing process. 

How do you win beyond the offer without racing to the highest upfront number? In this quick-hitting 13‑minute For the Road Forward episode, host Jade Terreberry sits down with Micah Tindor to unpack why shifting consumer behavior demands that dealers adopt a long‑tail acquisition strategy—and how pairing that approach with Kelley Blue Book® Instant Cash Offer (KBB ICO) helps dealers win more trades, source the right vehicles, and build durable lifetime value.

Every car shopping journey has its highs and lows. On the positive side, it’s fun to do test drives and it’s exhilarating to drive off the lot in a new vehicle. But a lot happens in between those two highlights – and that’s where almost a quarter of car buyers consider bailing out altogether. According to Cox Automotive’s 2025 Drivers of Car Shopping Satisfaction Study, 24% of car buyers consider dropping out during their buying journey. 

Where do the negative feelings come in? Time spent sitting idle at the dealership continues to be the thing shoppers find most unpleasant. But according to those shoppers who considered abandoning their purchase, the other low points take place during negotiation and financing, including receiving a trade-in offer, figuring out what vehicle and options they can afford, and applying for credit. 

To keep more buyers moving forward and get them to the finish line, we can look to the four key drivers of shopper satisfaction: Control, Support, Education, and Transparency. Here is how those factors play into the F&I process for dealers and their customers. 

1. Give Buyers a Sense of Control 

Shoppers want flexibility and choice. Make sure you have the tools in place so they can get started online, complete their purchase the way that’s most convenient for them, and move at their own pace throughout their shopping journey.  

• Give shoppers the ability to apply for financing online to give them a head start no matter how and where they finalize their deal. 
• Take a collaborative approach with customers to guide them through the finance process with as little friction as possible. 
• Use the information that shoppers have provided to personalize the financing process and present the aftermarket products that make the most sense for them. 

2. Support Buyers by Making Every Interaction Count 

Informed buyers expect your staff to be helpful and knowledgeable. Make sure your team is equipped to deliver expert, personalized service at every step. 

• Ensure that your systems are integrated so that customer and deal information are consistent no matter how the customer began their shopping journey. 
• Be transparent about how the financing process works to set expectations up front. 
• Keep buyers engaged and informed throughout the buying process using automated updates as appropriate. 

3. Education: Knowledge is Power 

Deals can stall out when a buyer feels uncertainty. Make sure every step of the finance process is clear and informative so buyers feel confident in their decisions. 

• Present all disclosures in a timely manner and explain compliance steps in terms of the customer’s safety and protection. 
• Clearly explain finance terms, fees, and aftermarket options. 
• Build trust by continually educating buyers throughout the process and setting their expectations at each phase of the deal. 

4. Transparency Builds Trust and Boosts Satisfaction 

Trust drives loyalty. Keep pricing consistent and transactions error-free, while communicating openly at every stage. 

• Offer transparent, accurate trade-in appraisals to help car shoppers better understand their budget for the purchase. 
• Whether online or in-store, be sure to present aftermarket options consistently to every car buyer. 
• Use digital contracting with built-in functionality that checks data and catches errors. This helps you avoid re-contracting and speed up financing approvals and funding. 

By putting these solutions and processes in place, your dealership can help encourage more car buyers to complete their deals and drive off the lot happy. To learn more about how Dealertrack F&I solutions promote control, support, education, and transparency, take a self-guided demo. 

This Automotive News webinar led by Micah Tindor from Cox Automotive, focusing on current trade-in market trends, Q4 projections, and strategies for proactive used inventory acquisition. The session covers challenges like slowing sales pace, rising negative equity, affordability issues, and the impact of tariffs and EV tax credits. You will learn how to optimize acquisition channels, leverage data-driven solutions, and use Kelley Blue Book tools to navigate a changing automotive market.

By Micah Tindor, Assistant Vice President, Consumer Vehicle Disposal, Cox Automotive 

As dealers head into the final stretch of the year, the automotive market is anything but predictable. Inventory swings, affordability pressures, and shifting consumer behaviors are creating a complex environment—one that demands smarter, more agile strategies. In this blog, I’ll share insights from our recent Auto News webinar on how dealers can navigate these challenges, capitalize on seasonal opportunities, and build scalable systems that drive long-term success. Whether you’re managing trade-in complexities or rethinking your acquisition strategy, the tools and tactics we’ll explore can help you stay ahead of the curve.

Navigating Today’s Trade-In Market: Trends and Challenges 

Inventory pressures and trade-in challenges aren’t going away anytime soon. Trade-ins are more essential than ever, and dealers need to pay close attention to three key areas: EV values, affordability, and the growing number of consumers who are “underwater” on their loans. 

On the EV front, the removal of the EV tax credit for used vehicles means dealers must be sharp and careful when valuing EVs.  

Affordable inventory is tighter than ever. In September, the average transaction price (ATP) hit $50,080—the highest ever¹. Meanwhile, APRs remain high—over 13% for used vehicles and 9% for new—making it harder for consumers to find lower-cost vehicles². 

Many consumers who paid above MSRP during the pandemic are now underwater on their loans. Currently, 26.6% of consumers are in this position, up from 24.1% at the end of last year³.  

Seasonal Shifts: Opportunities and Risks in Q4

As we finish out Q4, dealers should be watching sales pace versus inventory levels. Through September, the used car sales rate slowed by 3.9%, and CPO sales dropped by 19.3%⁴. On the new car side, days supply has increased to 77 days—a normal seasonal trend, but one that requires close monitoring⁴. 

Dealers need to be aware of several factors impacting the market: 

• Tariffs are starting to show up, with OEMs unable to absorb the costs indefinitely. 
• The impact of EV tax credits going away. 
• The effect of the recent Fed rate cut, which hasn’t moved auto APRs. 

Every market is unique, so it’s critical for dealers to closely watch their own inventory levels and adjust acquisition plans to make the most of holiday and year-end buying trends. 

Building a Proactive Acquisition Strategy 

A proactive acquisition strategy starts with understanding your data—knowing which vehicles to target and their total ROI. There are seven acquisition channels at a dealership:  

• Auction
• Group transfer
• Off-lease
• Missed appraisal follow-up
• Trade
• Private seller
• Service lane

Dealers need to analyze their channel blend, gross ROI, and the effort required for each channel. The goal is to identify which acquisitions create a virtuous cycle of revenue generation and aggressively go after those vehicles. Dealers must know which channels to pursue, which cars deliver the most value, and then compensate their teams to drive success—creating a scalable acquisition system. Considering 5 of the 7 channels involve consumers, dealers also need to turn to solutions that help them acquire direct from consumer inventory more efficiently and effectively.

Turn to Scalable Solutions

Scalable solutions like Kelley Blue Book^® Instant Cash Offer empower dealers to source more vehicles directly from consumers, delivering superior look-to-book and cost-to-market outcomes compared to the competition.

Our new Offer Accelerator add-on allows dealers to increase their acquisition pipeline to align with their goals and objectives. Dealers can flex up during less stable inventory periods or in advance of campaigns—without a long-term commitment. 

Closing Thoughts

Smart strategies and scalable solutions are the keys to thriving amid inventory swings and seasonal shifts. To learn more about how Kelley Blue Book^® Instant Cash Offer and new tools like Offer Accelerator can help your dealership win in Q4 and beyond, request a demo today. 

SOURCE:

1. Kelley Blue Book 
2. Wards Auto 
3. Edmunds 
4. Cox Automotive data 

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