Artificial intelligence is reshaping how consumers research and purchase vehicles, with younger car shoppers relying heavily on AI tools to guide model selection, financing, and timing.
Salesforce data shows that 79% of Generation Z shoppers want AI agents to recommend the most suitable car, while CDK Global reports that 51% of Gen Z prefer using AI assistants to book service appointments.
This shift gives buyers more information than ever, but it is also creating new complications for dealerships.
AI now behaves more like a personal consultant than a traditional search engine. It weighs vehicle configurations, towing needs, interior space, and budget constraints to suggest models that shoppers may not have previously considered.
Customers are arriving at dealerships armed with AI-generated insights on financing terms, market conditions, negotiation tactics, and optimal buying windows.
Yet the technology often introduces overconfidence and misinformation. Errors are common, including references to discontinued trims, pricing from other regions, or features that are not available.
The conversational nature of AI can make false or outdated data sound authoritative, and even reputable source restrictions cannot fully prevent inaccuracies. Free AI tools, in particular, often lack access to current market data.
AI can also set unrealistic expectations during negotiations. Some buyers attempt strategies that worked in previous market conditions, such as trading in leases for profit during supply shortages, even though those scenarios no longer apply.
The tools may further complicate transactions by suggesting vehicles or dealerships outside a buyer’s local market, presenting prices that do not reflect shipping, regional incentives, or local taxes.
Dealerships now face the challenge of adapting to this shift. AI-informed buyers will continue to grow, especially as Generation Z becomes a larger share of the market.
Sales teams must increasingly focus on helping customers distinguish accurate, market-specific information from misleading AI recommendations.
Instead of explaining basic vehicle options, dealers are spending more time validating AI-generated insights and guiding buyers toward decisions grounded in the realities of their local market.
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