A recent study by Startline Motor Finance has highlighted that 62% of car dealers have incorporated AI into their operations.  

The report details the specific uses of AI within car dealerships.  

The technology is being applied by 38% of dealers to guide customers in selecting appropriate vehicles, by 31% to manage the initial stages of customer interaction, and by 26% to help buyers determine suitable car finance options. 

Startline Motor Finance CEO Paul Burgess said: “The level of adoption we are seeing here is perhaps surprisingly high, given there are not yet that many specialist AI products for dealers available. 

“What is also fascinating is that the technology is almost exclusively being used in a customer-facing role, for lead handling, car choice and finance. These are tasks that have traditionally been seen as part of the core expertise of dealer staff.” 

Not all dealers, however, are convinced of the benefits of AI.  

The research found that 18% prefer their current business processes without the addition of AI, 16% remain sceptical about the technology’s advantages, and 6% consider AI to be in its developmental stages and not ready for widespread deployment. 

The effectiveness of AI in this sector has received mixed feedback. 

Among those who have integrated AI into their operations, 10% have reported positive outcomes while 8% have not found it to be beneficial. 

The findings are based on a survey conducted by APD Global Research, known for its expertise in market analysis and customer experience strategies. 

The latest research involved a sample of 300 consumers and 61 car dealers. 

Burgess added: “These are curious figures open to a wide degree of interpretation. The response rates are very low compared to the two-thirds of dealers who are using AI, perhaps suggesting that a large percentage have yet to make up their minds. 

“Also, both those feeling satisfied and unsatisfied with their experiences almost cancel each other out. This could indicate overall that AI isn’t yet delivering on dealer expectations, at least in this relatively early phase.” 

Recently, in the October edition of the Used Car Tracker, there was a sense of optimism among car dealers, with 61% reporting a successful year and a hopeful outlook for the fourth quarter of 2025. 

Furthermore, 60% of dealers have expressed greater confidence in their business prospects than in the past.