- Feb 16, 2015
- 8
- 2
- Awards
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- First Name
- Eric
I’m interested in hearing how other dealerships are handling CarEdge.com’s AI buying service, particularly around identifying who is conducting the negotiation, manufacturer policies and the use of dealer responses in public ratings.
My understanding is that CarEdge’s service goes beyond referring a customer or presenting dealer-established pricing. It contacts dealerships, negotiates pricing and makes counteroffers on a consumer’s behalf.
Here is its live activity page: https://caredge.com/live.
We support consumers shopping around and getting help with their purchases. However, this approach raises several questions that I think deserve discussion:
1. Is this a broker or buyer-representative relationship?
When a consumer pays a company to negotiate a vehicle purchase, how should dealerships classify that company’s role? Has anyone received guidance from their manufacturer or state dealer association on handling these transactions?
2. Who is actually communicating with the dealership?
If an inquiry appears to come directly from a consumer but is being handled by an AI service or third-party representative, that distinction matters. Protected contact information alone doesn’t establish misrepresentation, but dealers should be able to understand who they are communicating with and whom that party represents.
Are dealers being clearly informed when CarEdge is involved? What are you requiring to verify the buyer’s identity and the service’s authorization to negotiate on their behalf?
3. Have manufacturers provided any direction?
Has Honda, Mazda, Kia or another manufacturer issued guidance on AI buying services or paid third-party negotiators? I’m particularly interested in any requirements involving customer verification, incentive eligibility, sales reporting and sharing customer or transaction information.
4. How fairly are dealer responses reflected in public ratings?
My understanding is that CarEdge uses information collected through these negotiations to help produce its Dealer Transparency Index.
How does that process account for an incomplete preliminary quote, an individual employee’s mistake, a later correction or an AI system misunderstanding a response? Can dealers review and dispute the information used to evaluate them?
There are also differences in state fees and terminology. Here in Delaware, for example, the state motor vehicle document fee should not be confused with a dealership documentation or processing fee. A rating system needs to distinguish those charges accurately.
5. Could these ratings influence AI recommendations?
If AI search and recommendation platforms use these ratings to recommend dealerships, an inaccurate assessment could affect a store beyond CarEdge’s own website. Do dealers have a practical way to correct the underlying information before it spreads?
My concern is transparency on all sides: consumers should receive clear pricing, dealers should know who is representing the buyer, and public ratings should reflect the full exchange and accurate information.
Has anyone here dealt directly with CarEdge’s AI service, reviewed how their dealership was rated, or received guidance from a manufacturer or dealer association? I’d appreciate hearing what worked, what problems you encountered and how your team handles these inquiries.
My understanding is that CarEdge’s service goes beyond referring a customer or presenting dealer-established pricing. It contacts dealerships, negotiates pricing and makes counteroffers on a consumer’s behalf.
Here is its live activity page: https://caredge.com/live.
We support consumers shopping around and getting help with their purchases. However, this approach raises several questions that I think deserve discussion:
1. Is this a broker or buyer-representative relationship?
When a consumer pays a company to negotiate a vehicle purchase, how should dealerships classify that company’s role? Has anyone received guidance from their manufacturer or state dealer association on handling these transactions?
2. Who is actually communicating with the dealership?
If an inquiry appears to come directly from a consumer but is being handled by an AI service or third-party representative, that distinction matters. Protected contact information alone doesn’t establish misrepresentation, but dealers should be able to understand who they are communicating with and whom that party represents.
Are dealers being clearly informed when CarEdge is involved? What are you requiring to verify the buyer’s identity and the service’s authorization to negotiate on their behalf?
3. Have manufacturers provided any direction?
Has Honda, Mazda, Kia or another manufacturer issued guidance on AI buying services or paid third-party negotiators? I’m particularly interested in any requirements involving customer verification, incentive eligibility, sales reporting and sharing customer or transaction information.
4. How fairly are dealer responses reflected in public ratings?
My understanding is that CarEdge uses information collected through these negotiations to help produce its Dealer Transparency Index.
How does that process account for an incomplete preliminary quote, an individual employee’s mistake, a later correction or an AI system misunderstanding a response? Can dealers review and dispute the information used to evaluate them?
There are also differences in state fees and terminology. Here in Delaware, for example, the state motor vehicle document fee should not be confused with a dealership documentation or processing fee. A rating system needs to distinguish those charges accurately.
5. Could these ratings influence AI recommendations?
If AI search and recommendation platforms use these ratings to recommend dealerships, an inaccurate assessment could affect a store beyond CarEdge’s own website. Do dealers have a practical way to correct the underlying information before it spreads?
My concern is transparency on all sides: consumers should receive clear pricing, dealers should know who is representing the buyer, and public ratings should reflect the full exchange and accurate information.
Has anyone here dealt directly with CarEdge’s AI service, reviewed how their dealership was rated, or received guidance from a manufacturer or dealer association? I’d appreciate hearing what worked, what problems you encountered and how your team handles these inquiries.
