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Dealers aren't just “experimenting” with AI anymore. In 2025 and beyond, AI is operational. We're talking AI employees—not just widgets or tools. From AI phone receptionists to SMS agents, follow-up bots, and internal task management, dealers are offloading repetitive tasks to AI so their teams can focus on closing, building trust, and delivering actual value. By 2026, if you’re not using AI to streamline comms and manage data, you’re already behind.
Pro tip: AI isn't replacing humans—it’s replacing friction.
Interest rates are still high, inflation is stabilizing, and credit access is tight. Consumers are more cautious, especially with bigger purchases. But no, we’re not heading for a crash. It’s more like a long, slow grind—meaning you need smarter strategies to keep volume up without blowing margins.
Supply is up. Way up compared to the chaos of 2022-2023. That means more incentives, discounting, and pressure on gross. Welcome to the buyer’s market. This shift isn’t temporary—it’s the new base.
Expect modest declines to continue into 2026 as OEMs sweeten deals and increase support. Margins are getting squeezed—time to double down on ops and retention to protect profit.
Dealer profitability peaked, and now it’s correcting. Margins are compressing, labor and parts costs are rising, and that "we can sell anything" energy is fading fast. The winners now are the most efficient operators.
Yes, EVs passed the 1M mark in 2024. But in 2025, a lot are just sitting on lots. Customers still need education—especially in secondary markets. Selling EVs now means more content, better funnels, and clearer ROI messaging.
Evergreen content about cost savings, charging, and maintenance is your inbound engine.
2025 is the year dealers finally wake up to CDPs (Customer Data Platforms). If you're still not tracking your customers beyond the CRM, you're not selling efficiently. A great CDP helps you know who’s ready, what to say, and when to reach out. Car sales is timing—data helps you nail it.
Used-vehicle sales are stable and CPO programs are still outperforming the broader market. Nothing revolutionary here, just slow and steady movement. Focus on sourcing quality inventory and working those equity mining plays.
Please, stop spending $600 to $1,000 on acquiring a lead while your current customer database is untouched. Renewal processes and in-house mining should be a priority. If you're not building loyalty loops into your sales process, you're leaving easy money on the table.
2025 isn’t about mass blasting. It's about mass personalization. With zero and first-party data, you can trigger specific, timely outreach that feels 1:1—even when it’s automated. Think smart SMS, emails, voicemails, ads—whatever channel makes sense for that buyer.
Buyers are financially squeezed. Offering creative, flexible finance options and transparent monthly payment messaging is where we’re seeing lift. If your BDC or showroom teams aren’t leading with payment-first strategies, you're missing the mark. Expect this to stay critical through 2026.
Whether online or in-person, the customer experience has to be seamless. From booking a test drive to final delivery, your experience is your brand now. Friction kills deals. Speed, trust, and transparency close them.
Everything above connects back to one thing: your systems. The cheat code is using automation, AI, and smart data to do more with less—without burning your team out. It’s not just possible anymore—it’s expected.
If you're doing all that, congrats—you’re not just surviving 2025 and 2026, you’re building a dealership that can actually thrive in this new market.
Did I miss anything? Let’s talk.
Director, Business Development
Today, Puzzle Auto exists to push that even further. We've helped over 800,000 car shoppers connect with dealers, and my focus is on business development—constantly exploring new strategies, tools, and partnerships that help our dealer network drive revenue and stay ahead.
