• Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.

When will AI become a Personal Car Shopping Assistant?

DJ, it appears you are new to the forum. Welcome! Appreciate you engaging. Mind telling us a little about yourself?
Hi Bill,

Nothing much to tell, I love old cars and grew up around a bunch of old school mechanics.

I'm a programmer, front end developer, and web designer, and on the side I'm a mechanic, body man, and car painter.

I believe with rising interest rates, mass layoffs, the rising cost of vehicles, the lowering of wages, tariffs, electric vehicles being shipped directly to the consumer, rising food prices, rising gas prices, 3rd party sites that don't carry any inventory, and consumers developing a total distrust of dealerships, that the dealerships are in trouble.

I think Elon conned the world, global warming is being used by the rich to get richer, and the divide between the rich and poor will enslave us all.

And I don't care what type of car you drive and you shouldn't care what type of car I drive however since the people pushing EV's want to use the government to force me into a type of car I feel like I need to defend driving what I want to drive, which is really unfair and sad.

I believe congress regularly passes laws that violate common sense!

I believe biometric Authentication, things like eye scans, facial recognition, fingerprints, and other things that are unique to each individual shouldn't be used to identify you because when the company gets hacked they get more than just your password.

I believe private equity firms will destroy any business they come into contact and are to blame for the CDK Global and CrowdStrike hacks.

I believe Musk, isn’t going to recommend eliminating tax loopholes which resulted in the government losing out on at least $1.8 trillion worth of tax revenue in 2023 alone, because most tax loopholes, like the carried interest loophole that reduces taxes for private equity and hedge fund managers disproportionately benefit the rich.

I also doubt Musk will recommend cutting the billions in government contracts and subsidies his corporations receive. Or our bloated military budget that's bigger than the next nine countries’ military budgets combined.

Half of that goes to private defense contractors like Musk's own SpaceX, and StarLink.

Many federal contractors, like Boeing and Raytheon, have histories of price-gouging, largely because they faced little or no competition.

And Musk, of course, won't recommend that Republicans halt their plans to extend Trump's tax cuts, which will add at least $5 trillion to the deficit, and predominantly benefit billionaires like him.

That's more than twice the amount DOGE wants to cut in “wasteful government spending”.

I believe AI is a hoax and anyone killing kids are evil.

And I believe that for dealerships to survive they have to play a new game!

However when companies don’t have competitors like Google, Amazon, YouTube, Facebook, and the like, and everyone around the world is using them, and their destroying business, and aren’t paying taxes...your in trouble.

I Believe Capitalism has been overthrown by barbarism.

And when everyone is forced to go through these platforms to sell their stuff and their getting 40% and didn’t create the content, product, information, or anything to do with the product. When companies like Amazon are making over 42 billion a year and pay zero taxes, you know you’ve got a problem.

The reason they have all the data is because we created it and gave it to them. I believe we need a system that is owned and controlled by the people and that is where the data should go and who should make the money from it and I believe dealerships are about to get eaten alive by it.

There is a certain type of disruption that takes place in absence of innovation. When an industry stagnates and fails to keep up with the needs of their clients, an opportunity is created for someone to completely change the game. That someone usually comes from outside of the industry being disrupted and it is exactly what we are seeing happening with the dealerships but they are asleep, rolling over, showing their bellies, and blaming the consumers.

I Believe The Web Design Industry as a Whole is a MESS!

The only thing worst than not having a website is having a website that is poorly coded, designed, and thought out.

An unfortunate trend has emerged within the industry. Where instead of focusing on producing high-quality code, it’s become about how quickly you can complete the project. This has lead to a decline in the overall coding standards. And a dependency on mass-produced frameworks.

The desire to appeal to as many people as possible has lead to mundane, plain, ordinary designs, where everyone looks the same, stifling creativity and innovation.

98% of websites are full of coding errors, 95% aren't ADA compliant which could get you sued, and the average website takes something like 17 seconds to load.

But no one cares and because of it dealerships will begin to disappear as they hire the very companies they should be competing against to build their websites.

Anyway...nice to meet you all!
 
Never owned a retail store have you?
Greg, you own a SaaS, Imagine you had an inventory loan from the bank and payroll and an ad budget... and you havent had a soul in your store in 4 hours. The stress is real.

Your overhead is your bedroom. Let go of the mouse and get out of the house and see the world.
My uncle owned a lawn mower dealership and I kind of grey up in it and just out of school I started a body shop with some friends.

And I can promise you my overhead is a lot more then my bedroom, I have a house, office, employees, and family to support.

When the debate is lost, slander becomes the tool of the losers.
- Socrates

My point was the game has changed and if dealerships don't learn how to play a new game they will go out of business, instead of attacking me and trying to insult me you might consider this being a topic worth debating, maybe we could both learn something. ;-)
 
instead of attacking me and trying to insult me you might consider this being a topic worth debating, maybe we could both learn something.
Sorry, my bad.

Forgive my cranky reply. I'm jaded. I spent 10 years in dealerships, followed by 10 years in automotive SaaS surrounded by product people with strong opinions about disrupting the auto industry. Namely, that car dealers needed to be disrupted because everyone "knows" car dealers are not nice people. Their beliefs were based on their experiences as buyers, not sellers.

What?? Our Websites SUCK -more- than buying the car?
1742318998072.png

See the chart. Our websites suck and that's why Dealers suck. It's why Digital Retailing failed.

Over and over I'd hear devs state "Dealers need to change" yet they never worked in a store, never immersed themselves in this giant beast called a dealership. Try it, you'd never be the same. You'd hear 1st hand how car shoppers are forced to ask car sales reps for answers and many of the sales reps are not product ppl. It's a formula for shoppers making sh*tty decision.

If you are committed to auto retail, find a dealer near you and offer a swap. You offer some consulting advice to them, and you get to observe their store trying to make payroll. Listen to the calls, read the emails, shadow the reps SHOPPERS HAVE QUESTIONS THE INTERNET COULD NOT ANSWER FOR THEM.

Solve this problem and now you've given the shopper far more power in the transaction.
 
Last edited:
My point was the game has changed and if dealerships don't learn how to play a new game they will go out of business
I don't think anyone here disagrees that times have changed. What specifically do you mean when you say dealerships need to learn how to play the new game? Are you referring to pricing, whether to negotiate or not, or something else?

With your own businesses or side jobs, have you ever reduced the overall quote of a design or coding proposal? Ever lowered the quote for an estimate you gave someone body or service work? If so, why? I would bet that some of your reasons are the same reasons dealership's still negotiate.
 
Sorry, my bad.

Forgive my cranky reply. I'm jaded. I spent 10 years in dealerships, followed by 10 years in automotive SaaS surrounded by product people with strong opinions about disrupting the auto industry. Namely, that car dealers needed to be disrupted because everyone "knows" car dealers are not nice people. Their beliefs were based on their experiences as buyers, not sellers.

What?? Our Websites SUCK -more- than buying the car?
View attachment 9419

See the chart. Our websites suck and that's why Dealers suck. It's why Digital Retailing failed.

Over and over I'd hear devs state "Dealers need to change" yet they never worked in a store, never immersed themselves in this giant beast called a dealership. Try it, you'd never be the same. You'd hear 1st hand how car shoppers are forced to ask car sales reps for answers and many of the sales reps are not product ppl. It's a formula for shoppers making sh*tty decision.

If you are committed to auto retail, find a dealer near you and offer a swap. You offer some consulting advice to them, and you get to observe their store trying to make payroll. Listen to the calls, read the emails, shadow the reps SHOPPERS HAVE QUESTIONS THE INTERNET COULD NOT ANSWER FOR THEM.

Solve this problem and now you've given the shopper far more power in the transaction.
My point was never to attack the dealerships but to try and better understand their thinking because in my humble opinion a bunch of billionaires are going to take over the entire industry and eat the dealerships for lunch in the same manor as they did the real estate agents.

New players have shown up in every country, dominating used car sales and the one thing they all have in common, is the majority do not have any inventory of their own.

This is a platform war and the ones with the best platforms, better marketing, and better performance are winning. And the average dealership website is full of code bloat, errors, bad practices, and takes nearly a minute to load.

As a matter of fact dealerships seem to have accepted their losses and hired their competition to build their sites.

In the future the playing field will look a lot different.

As everything moves online it becomes more competitive and disruptive as Carvana, Roadster, Shift, and Vroom launch price-competitive business models to compete against one another, they will simplify the buying and selling experience for consumers and the dealership will lose more income.

The shift to purchase cars online is already outpacing offline purchases.

As dealers begin to counter with the up-sale of parts-and-service contracts the nimbler high-tech players will introduce new business models and will cause more disruptions.

If the dealerships do nothing they will go out of business.

Dealerships will not be able to compete with the pricing transparency offered by online channels.

Dealerships have already lost the used car sales but they have laws in place that say it’s illegal for any car manufacturer to sell directly to the consumer or open up their own dealership. All dealerships have to be completely private and unrelated to the car manufacturer.

Tesla uses a loophole.

Dealerships have been lobbying against and have even taken Tesla to court on multiple occasions.

However if Tesla is willing to fight court case after court case to avoid using dealerships, something must be wrong with the current dealership model.

A lot of people feel dealerships should never have been given a monopoly on new car sales.

If dealerships make the most business sense for the manufacturer then the manufacturer should be able to choose that model. If selling direct to the consumer makes the most sense, then the manufacturer should be allowed to pursue that strategy.

This should not be something that the government is involved with!

Manufacturers want to fight the law because EVs require a lot less service and to compete with Tesla they need more control over their prices.

And sites like cars.com stand to replace the dealerships if those laws get changed. The very company that controls the dealerships ability to compete online, stands to gain the most if they can’t.

To survive the dealership needs to adopt drastically different business models and pursue new revenue streams.

Dealerships need to be able to compete online with sites like cars.com.

But they need a way to implement their own ideas and goals that go beyond just being a clone of the competition. Dealerships need a website that is able to handle some of the offline work to reduce operating costs via improved operating efficiency.

And while I'm not in the dealership and can't see all the problems the dealerships are dealing with I can see that the dealerships need to pivot and they need to pivot in a way that will allow them to compete with the online players.

My only intentions was to try and shine some light on the problem and bounce different ideas off the people who are going to have to fight this battle, I'm not the hero, guide, or even in the battle, all I'm trying to do is show you that you are in the battle and your time is running out.
 
Sorry, my bad.

Forgive my cranky reply. I'm jaded. I spent 10 years in dealerships, followed by 10 years in automotive SaaS surrounded by product people with strong opinions about disrupting the auto industry.

This is why we call him Uncle Joe and he even has his own emoji: :unclejoe:


:rofl:
 
  • Like
Reactions: joe.pistell
I don't think anyone here disagrees that times have changed. What specifically do you mean when you say dealerships need to learn how to play the new game? Are you referring to pricing, whether to negotiate or not, or something else?

With your own businesses or side jobs, have you ever reduced the overall quote of a design or coding proposal? Ever lowered the quote for an estimate you gave someone body or service work? If so, why? I would bet that some of your reasons are the same reasons dealership's still negotiate.
The Web Design Industry as a Whole is a MESS!

A 2020 report by accessiBe, analyzing over 10 million webpages, found that a large majority (98%) were not compliant with the Web Content Accessibility Guidelines (WCAG 2.1), which are the basis for ADA compliance.

And if a website is not ADA compliant you can get sued and fined so by focusing on this and by focusing on attorneys, W3C valid code, and .5 millisecond load times I hope to avoid the pricing wars.

However to make this work I would have to focus on clients with deep pockets like attorneys and put a lot of time and thought into educating them and if something peaked my interest or if I needed the money I would have no choice but to compete on price.

Of course another way to do this would be with a membership of some sort…

Imagine if you could create a membership site, charge $999.99 per month, and sell 1,000 packages.

You'd be making nearly a million dollars a month.

If you charge $100 per month, to make $1,000,000 per month, you would need to sell 10,000.

Consider the five reasons most people don't buy...

1.) no money

2.) no time

3.) no need

4.) no urgency

5.) no trust

So then the question becomes how does a dealership remove himself from the pricing war?

MAYBE:
  • Enhanced Customer Service: Building trust through knowledgeable staff, transparent practices, and attentive care can create loyalty that goes beyond price.
  • Unique Value Propositions: Offering exclusive financing options, extended warranties, or service packages can justify a premium price.
  • Digital and Omnichannel Strategies: A seamless online experience (including virtual tours, easy appointment scheduling, and real-time inventory updates) can differentiate a dealership, making the buying process smoother and more appealing.
  • Community and Brand Reputation: Being an active, trusted local presence with community engagement and positive reviews can help customers feel confident in their purchase.
But then the real question is how do you compete with the current online players to take back the used car business.

They can leverage their physical presence and local reputation to build trust and offer a personal touch that online-only platforms often lack.
  1. Omnichannel Experience
    Blend the convenience of online shopping with in-person services. This means providing a robust, user-friendly website with high-quality virtual tours and transparent pricing, alongside the opportunity to test drive, inspect vehicles in person, and receive expert advice from knowledgeable staff.

  2. Superior Customer Service:
    Focus on delivering exceptional customer care. Personalized attention, tailored financing options, and after-sales services (like warranties and maintenance packages) can help differentiate the dealership from faceless online transactions.

  3. Local Advantage & Community Engagement:
    Many buyers value the ability to speak directly with experts and enjoy the convenience of local service.

  4. Digital Transformation & Technology Investment:
    Invest in modern digital tools and technologies to streamline the buying process. This might include integrating online inventory systems, appointment scheduling, digital financing options, and even home delivery or virtual consultations, which help bridge the gap between online and offline experiences.

  5. Value-Added Services:
    Offer services that online platforms cannot easily match, such as personalized vehicle customization, comprehensive trade-in evaluations, and bundled service packages that enhance the overall value proposition.

What problems do dealerships have with these online platforms?

1. Problem/Pain Points

Dealerships consistently highlight the following struggles with competing against online platforms like Autotrader, CarGurus, Cars.com, TrueCar, Carvana, Shift, and Vroom:
  • High Costs and Poor ROI: Many dealerships find the cost of leads from platforms like TrueCar and CarGurus exorbitant compared to the quality of those leads.
  • Price Transparency Issues: Online platforms often promote price comparisons that favor buyers but create challenges for dealers.
  • Customer Mistrust: Some platforms allow dealers to list vehicles with misleading prices.
  • Shift to Online Shopping: The rise of e-commerce platforms like Carvana has disrupted traditional dealership models. Customers increasingly prefer seamless online transactions, leaving dealerships struggling to adapt their sales processes
  • Lack of Control Over Customer Data: Dealers often feel restricted by tiered subscription models on platforms like CarGurus, where accessing customer contact details or insights requires paying higher fees.

2. What They've Tried That Didn't Work

  • Relying Solely on Internet Sales Departments: Many dealerships use internet sales as a lead-generation tool rather than enabling full online transactions. This approach frustrates customers who expect a seamless digital experience.
  • Discount-Based Pricing Strategies: Attempting to undercut competitors by lowering prices has backfired for some dealers, as it erodes profit margins without significantly improving lead quality or conversion rates.
  • Subscription-Based Advertising on Platforms: Paying for premium listings or leads on sites like Cars.com and CarGurus often results in low ROI due to poor lead quality or unresponsive customers.
  • Traditional Marketing Channels: Some dealers continue to rely heavily on outdated advertising methods (e.g., print ads or basic social media campaigns), which fail to capture the attention of modern, tech-savvy buyers.
  • Minimal Investment in Digital Tools: Dealers who underinvest in website functionality, online financing tools, or virtual showrooms struggle to compete with the advanced user experiences offered by online marketplaces.

3. What Their Dream Outcome Looks Like

  • Seamless Omnichannel Experience: A hybrid model combining the convenience of online shopping with the personalized service of physical dealerships. This includes robust websites offering transparent pricing, financing tools, and virtual test drives.
  • Affordable and High-Quality Leads: Platforms that provide cost-effective leads with high intent to purchase, ensuring better conversion rates and improved ROI on advertising spend.
  • Control Over Customer Relationships: Direct access to customer data without excessive fees or restrictions imposed by third-party platforms. This would allow dealerships to build stronger relationships and loyalty programs.
  • Level Playing Field in Pricing Transparency: A system where all listings include full transparency (fees, incentives, etc.), preventing deceptive practices that harm both consumers and honest dealerships.
  • Enhanced Digital Competency: Tools and training that enable dealerships to offer competitive digital experiences—such as online purchasing options, personalized communication, and data-driven marketing strategies—without requiring massive investments.

So then the question becomes how would you go about building this platform and how would it work, how would you build something that would blow the current competition away and allow you to take back the online used car sales?

Because if you can take back the used car sales competing against the current dealerships should be a walk in the park...

1. Problems/Pain Points


Consumers frequently express frustration with the following issues when using online car-buying platforms like Autotrader, CarGurus, Cars.com, TrueCar, Carvana, Shift, and Vroom:
  • Misrepresentation of Vehicle Condition: Buyers often find that vehicles are not in the condition advertised, with undisclosed mechanical issues or cosmetic damage only discovered after purchase or delivery
  • Inconsistent or Poor Customer Service: Many complain about receiving conflicting information from customer service representatives or long delays in resolving issues
  • Delivery Delays: Late deliveries are a recurring issue, leaving buyers without a car for extended periods despite having paid for it.

  • Hidden Costs and Pricing Discrepancies: Some users report "clickbait" pricing or unexpected fees that make the final cost much higher than initially advertised
  • Limited Transparency in Financing and Trade-In Values: Buyers struggle with unclear financing options and feel undervalued on trade-ins compared to in-person negotiations

2. What They've Tried That Didn't Work

  • Relying on Inspection Guarantees: Trusting seller-provided inspection reports often leads to disappointment when vehicles arrive with unreported issues.
  • Contacting Customer Support Repeatedly: Reaching out to customer service for clarity or resolution often results in inconsistent answers or no resolution at all.
  • Using Multiple Platforms Simultaneously: Searching across several platforms (e.g., TrueCar, Cars.com, CarMax) can become overwhelming and still fails to yield better results due to similar systemic issues across platforms.

  • Requesting Written Price Confirmations: Even with written confirmations, some buyers report bait-and-switch tactics at dealerships or upon delivery.

  • Attempting to Negotiate Online: Many buyers find that online platforms limit their ability to negotiate effectively, leaving them stuck with higher prices than they might achieve in person.

3. What Their Dream Outcome Looks Like

  • Transparent and Accurate Listings: Detailed, honest descriptions of vehicle condition with comprehensive inspection reports that match reality upon delivery.
  • Streamlined and Reliable Customer Support: Consistent communication from knowledgeable representatives who can resolve issues promptly without conflicting information.
  • Guaranteed Delivery Timelines: Clear and reliable delivery windows with updates throughout the process to avoid unnecessary delays.
  • Fair Pricing and Financing Options: Transparent pricing without hidden fees, competitive financing options, and fair trade-in valuations comparable to in-person offers.
  • Seamless End-to-End Process: A hassle-free experience from browsing to purchase, including easy access to test drives, return policies, and warranties that provide peace of mind.
What are your thoughts, how would you compete, how would you standout from the competition?
 


Write your reply...