Fresh off Digital Dealer, Car Dealership Guy Founder and CEO Yossi J. Levi is thinking about where the industry is headed and how quickly it's getting there.
Here are his nine predictions for where the industry will be in the next 24 months. Under each one, we break down how it could play out and what it means for dealers. Hint: AI will play a dramatic role.
1) China begins its first pilot of U.S. auto retail
This is not a full-scale invasion. Instead, one or two Chinese automakers will enter through a controlled pilot, likely using U.S. manufacturing/joint venture structures and existing dealer distribution to test demand.
2) AI eliminates 50%+ of dealership BDC jobs
Improving AI models and their agents handle the repetitive work, such as responding to leads, following up, scheduling appointments, and reactivating customers.
This is a case where the BDC doesn’t disappear, but it gets dramatically more streamlined.
3) A 20-person dealership sells 200 cars a month
AI automation will likely compress headcount across sales, BDC, marketing, accounting, and admin by 2029.
And with that, revenue per employee becomes one of the most important metrics in retail.
4) Dealer software stacks shrink from 30 vendors to 10
Dealers are tired of paying for dozens of disconnected solutions. We’ve covered consolidation and the creation of better platforms that collapse multiple tools into a smaller core stack that runs more efficiently.
The guess is that this will be the norm by 2029.
5) Agent-to-agent car buying becomes the standard
This means your AI agent tells the dealer’s AI agent what you want, negotiates the details, handles financing/trade information, and brings you in only when necessary.
From there, websites and listings become less important as machines increasingly transact with machines.
6) A 10-person automotive startup reaches a $1B valuation
AI completely changes the relationship between headcount and enterprise value, which means a tiny team can build, sell, support, and scale software that previously required hundreds of employees.
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7) Dealers begin opting out of OEM co-op programs en masse
The reimbursement stops being worth the restrictions. More dealers choose control over their websites, vendors, marketing, and technology over OEM money.
8) Technician productivity doubles without technicians working more hours
AI diagnostic tools, better scheduling, automated inspections, smarter parts workflows, and robotics are improving shop efficiency. The same technician produces dramatically more labor hours per day, and in turn, more gross profit for the shop.
9) The first major dealership runs nearly 24/7
AI agents make overnight sales, service scheduling, financing, customer support, and back-office work possible with minimal staffing. The dealership effectively stops “closing,” even if the showroom does.
Twenty-four months may be generous for some of these, as LLMs improve daily and automate workflow for dealers to meet consumers where they are.
Where did we hit the mark? What are your predictions for the next two years? Share your thoughts at [email protected].
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