Don’t Fear the Future of AI in Automotive

Article from VADA Partner ACV Auctions

October 17, 2023

From our cars to our houses, technology continues to advance the way we live our lives in a major way. Some aspects of this evolution are exciting. Other parts seem frightening. But progress is always at the center. With that in mind, where does Artificial Intelligence fall in your wheelhouse for used car operations? Keep reading to hear VADA partner ACV's take on how AI will impact your dealership.

AI in automotive is real and it’s here to improve the way you do business every single day. How? From merchandising to inspections, these technology solutions enhance your efficiency, increase your grosses, and improve your ability to offer a better customer experience. If you want to refine how you do business, then it’s time to lean into technology...especially AI.

Keep in mind that AI is not a tool to run things for you, but rather it is a solution to partner with you to make your job easier and drive positive outcomes.

First, AI offers significant opportunities to streamline administrative processes. Anything from routine paperwork to invoicing and even appointment scheduling can be automated through AI. This doesn’t replace staff. Rather, it frees them up to offer more value-added services that can dramatically upgrade the customer experience while improving your brand’s reputation.

Next, advanced technologies can really elevate your inventory management processes. Here, AI helps analyze data and drive reports that optimize stocking. You gain insights into which vehicles you should go after while streamlining opportunities to obtain them.

On top of that, you can take historical data and analyze seasonality to make educated decisions based on trends and actual sales data. Your lot will be filled with the right cars priced competitively. AI helps you sell faster and hold more gross on every transaction. That’s how you change the game.

Finally, and this may have the greatest impact on your dealership, is AI’s ability to elevate the vehicle inspection process. Computer vision driven by AI image recognition can assess vehicle conditions by analyzing images and videos.

This increases accuracy on inspections for everything from windshields to dents. You’ll save money and gain a more accurate understanding of a vehicle's history and future repair needs. Couple this portion of AI technology with predictive maintenance that suggests repairs based on historical data and you’ll see a reduction of unexpected breakdowns on your inventory while shrinking recon and repair costs on trade-ins.

Simply put, incorporating AI into used car operations can streamline processes, provide a competitive edge, and ultimately heighten the customer experience. AI shouldn’t be feared. ‘

When utilized correctly, it is a tool that can unlock your dealership’s true potential. Find a partner who can help you integrate these solutions while guiding you on how to leverage future developments. Technology will always be your friend in automotive retail.