Why Small Dealers Can Win the AI Race

“The smaller the team, the faster the shift. That’s the real AI edge.” -Dealer at MRC 2025, Las Vegas

CURRENT EVENTS

Used Car Prices Edge Up for Second Month

Wholesale used vehicle prices rose 1.2% in early September, according to the latest Manheim data—marking two straight months of gains.

Supply is tight. Retail demand is stronger than expected. And dealers that recondition quickly are winning more upstream bids.

But here’s what’s different this time: small, independent dealers are adjusting faster than the big groups.

They’re raising prices in real time, using AI to appraise and price units before they hit the ground, while corporate stores wait on approvals and system-wide updates.

Takeaway:

Speed beats scale. And right now, it’s the independents getting paid.

AutoNation Pauses AI Phone Rollout

AutoNation temporarily suspended its AI-powered phone agent pilot after regulatory pushback around recording disclosures and consent.

That means another 60–90 day stall while legal teams reevaluate.

Meanwhile, smaller stores are deploying voice agents at the BDC level with clear disclosures and tighter feedback loops.

Takeaway:

The slower the organization, the harder it is to implement fast-evolving tools. Use your size as a weapon.

ChatGPT Enterprise Now Being Used by Dealer Groups

OpenAI confirmed that hundreds of Fortune 500 companies now use ChatGPT Enterprise—including several major dealer groups.

Most are using it for internal tasks: process documentation, scripting, onboarding flows.

The opportunity: Smaller stores are using the same tools directly in deal structuring, sales follow-ups, and reconditioning timelines.

Takeaway:

Don’t wait for corporate playbooks. The tools are available now. Use them faster and smarter.

EVENTS AND CONFERENCES

Modern Retail Conference Recap

MRC 2025 in Las Vegas focused less on future concepts and more on execution.

Most sessions centered on how dealers are actually using AI in day to day operations. The focus was on practical application, team adoption, and early results. The tone this year was less speculative and more grounded in real outcomes.

Highlights from the floor

AI in the F&I Office

Dealers shared how they are using AI to identify lender fit earlier in the process. Some are building workflows that help desk deals faster by flagging credit posture and lender preferences up front. Most are starting with basic use cases and refining from there.

Data Driven Merchandising

There was strong interest in inventory tools that combine market demand, shopper behavior, and pricing suggestions. Several dealers shared how they used this data to adjust promotions and move stale units without waiting on agency support.

Lead Response and Sales Enablement

BDC teams are using AI to improve lead response time and reduce manual work. Some dealers have built internal prompt libraries to help their teams respond more consistently and faster across channels.

Takeaway

Dealers are starting to move past the hype. The tools that are working solve specific problems and are being introduced gradually. The stores seeing results are the ones training their people and making adjustments in real time.

INDUSTRY UPDATES

Capital One Quietly Building Dealer AI Platform

Capital One is staffing up internally and partnering with AI startups to build floorplan intelligence, automated lending decisions, and direct integrations.

They’re not broadcasting it, but they are moving—deliberately and quietly.

This is what the big players do when they see market inefficiencies.

Takeaway:

The more centralized the system, the more vulnerable it is to disruption. If you can move faster than the bank, you win the retail race.

Have a story to share? A tool that’s working in your store?

Reply or DM. I’ll feature it next week.

— Adam