Cox Automotive Study Reveals AI and Digital Retailing's Impact on Dealer Profits

Transforming the Automotive Retail Landscape



A new study by Cox Automotive, titled the Digitization of Automotive Retail Study, sheds light on significant trends shaping the future of vehicle retailing. This thorough investigation reveals a remarkable shift towards more efficient, connected, and AI-integrated processes within the industry. As consumer expectations evolve, the facts are startling: nearly 50% of franchise dealers now offer a complete online purchasing experience, a figure that has almost doubled in merely two years. This shift indicates a pivotal transition in the automotive retail sector, tying increased digital capabilities directly to profitability.

The Role of Digitalization



The research emphasizes that seven out of ten buyers find value in completing various steps of their purchasing journey online. This makes the experience faster and more efficient—a critical advantage in today's fast-paced world. However, a challenge remains; 83% of dealers acknowledge that customers often have to repeat steps in-store due to inconsistent data they encountered online. To solve this, a number of high-performing dealerships are increasingly relying on third-party collaborations and integrated AI tools to streamline the purchasing process.

Insights from Industry Leaders



Lori Wittman, President of Retail Solutions at Cox Automotive, shared insights on the current landscape: "Forcing car buyers down one purchase path is no longer seen as a best practice. Today’s most prosperous dealers are redefining the retail journey by creating smooth transitions between online platforms and physical stores, all driven by automation, clean data, and personalized interactions. This research reinforces our commitment to assist dealers in forging omnichannel, customer-first experiences that contemporary buyers demand. Opening all paths to purchase and ensuring their connectivity is essential, particularly given the rising costs we are all navigating through."

Key Findings:


Multiple Tools and Data Consistency: A staggering 62% of dealers utilize various retailing tools, creating obstacles in achieving data consistency and seamless integration.
Winning Dealers' Strategies: Successful dealers tend to offer more online options and are 53% more likely to employ AI in their processes, facilitating higher closure rates and profitability.
Future Equipment Needs: While 83% of consumers believe AI will influence future vehicle purchases, only 37% of dealers currently regard it as essential in their operations.

The Call for Omnichannel Experiences



The study champions Cox Automotive's omnichannel approach and reinforces the organization's strategy of developing a connected retail ecosystem. Modern, connected experiences are not just a trend; they are now an expectation among consumers, leading directly to increased profitability for those willing to adapt.

For additional insights, the full eBook covering the comprehensive study is available through the Cox Automotive website, titled
The Omnichannel Dealership*.

About Cox Automotive



Cox Automotive stands as the world’s largest provider of automotive services and technology. With a strong backing of first-party data sourced from 2.3 billion online interactions annually, Cox Automotive offers tailored solutions that cater to car shoppers, auto manufacturers, dealers, lenders, and fleet providers alike. The company boasts an impressive workforce of over 29,000 employees distributed across five continents, encompassing a portfolio of leading brands, including Autotrader®, Kelley Blue Book®, Manheim®, vAuto®, Dealertrack®, NextGear Capital™, CentralDispatch®, and FleetNet America®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned conglomerate based in Atlanta, generating an annual revenue of $23 billion. For more information, visit coxautoinc.com or engage with them via @CoxAutomotive on X, CoxAutoInc on Facebook, or Cox-Automotive-Inc on LinkedIn.

Topics Auto & Transportation)

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