Dealers struggle with phone leads, car buyers are smarter than ever, dealerships leverage AI agents

Prefer to listen to this newsletter? Click here for the audio version.

Hey, everyone. Let’s run a quick temp check on the car business…

For all the dealers out there—how's your month going?

Email us [email protected] and please tell us what region you're in and what type of cars you sell.

Your response may be included in a future CDG newsletter.

— CDG

First time reading the Car Dealership Guy Newsletter? Subscribe here.

Welcome to The Weekly, your go-to roundup of the top five auto industry headlines of the week. Let’s dive in.

1. Inflation heats up to 3% for the first time in 7 months

January’s Consumer Price Index (CPI) rose 3% year-over-year, up from a three-and-a-half-year low of 2.4% in September. And some of the biggest price hikes are hitting car owners hard.

Zooming in: Auto insurance jumped another 2% last month, bringing the annual increase to nearly 12%. Used car prices climbed 2.2% month-over-month in January, while gas prices ticked up 1.8% from December 2024.

And the political blame game is in full swing. The White House points to Biden-era policies, while some Trump critics argue his tariff threats are already inflating costs.

Meanwhile—Fed Chair Jerome Powell made one thing clear—interest rates aren’t moving until inflation gets closer to 2% … (Go deeper: 3 min. read)

But if we dig further into the data…

2. Auto loan availability is the strongest its been in nearly 2 years

The Dealertrack Credit Availability Index showed credit conditions improving 3% year-over-year, the highest since March 2023.

Yes, but for the first time in nearly a year, the average auto loan rate ticked up—making borrowing more expensive, even for those stretching payments over longer terms.

Yet—some buyers are finding more options. Subprime loan approvals reached their highest share since April 2024, and longer-term loans are creeping up, easing monthly payment pressure.

Although—not everything is moving in buyers’ favor—overall approval rates slipped, yield spreads widened, and negative equity loans surged—hinting at financial strain.

The takeaway? Credit is more accessible, but it’s also more expensive. However—if lenders remain too cautious, they risk stifling demand … (Go deeper: 3 min. read)

But despite rising auto loan rates, a new consumer survey suggests that most car buyers aren’t deterred…

3. Report: Car buyers are smarter, better prepared, and more satisfied

Car buyers are doing more research than ever—and they know exactly what they want before stepping into a dealership.

According to the latest CarGurus Consumer Insights Report, 80% of buyers want to complete more steps online, and nearly 90% conduct thorough research before making a purchase.

Basically—digital retailing tools are no longer a convenience—they’re expected.

Why it matters: Buyers want straightforward online-to-in-store experiences, and dealers who can’t offer digital financing, trade-in valuations, and upfront pricing risk losing customers to those who can.

The bottom line? Buyers are savvier than ever and transparency wins … (Go deeper: 2 min. read)

OPENLANE brings you exclusive inventory, simple transactions and better outcomes — all with lower fees.

OPENLANE is making the buying and selling experience for dealers easier than ever before. The all-new unified OPENLANE app allows dealers to transition between buying or selling seamlessly, all from a single, easy-to-navigate app.

OPENLANE brings transparency to digital wholesaling with best-in-class inspections, exterior damage detection powered by AI and simplified OBD2 code scan summaries. Plus, on OPENLANE, you always know who you’re buying from. Follow a seller and get notified when they list a new vehicle.

That’s wholesale on easy mode!

New to OPENLANE? Sign up now and new sellers receive a $2,500 sale fee credit.

Even as digital tools dominate, inbound and outbound calls remain one of the most powerful—but often mishandled—parts of the sales process…

4. The costly mistakes dealers are making with their phone leads

A new report from Car Wars reveals a hard truth—many dealerships are still struggling to handle call volume efficiently—leading to missed revenue opportunities.

The reason?

Connection rates remain a weak spot.

• A staggering 31.8% of unconnected calls resulted from customers hanging up while on hold, with an average wait time of just over three minutes.

• Meanwhile—32.3% of missed calls went to voicemail, and another 20.2% involved customers leaving messages with staff.

Big picture: Dealers are still losing business simply because they aren’t getting customers on the line … (Go deeper: 2 min. read)

But agentic AI is stepping in to solve bottlenecks…

5. AI agents are coming to dealerships—here’s what that means

Unlike traditional chatbots that follow rigid scripts, AI agents can analyze conversations, adapt to complex situations, and execute tasks like scheduling appointments and updating customers—all without human oversight.

That’s a game-changer for service departments, where high call volumes and staffing shortages often leave customers waiting.

Zooming out: According to Numa CEO Tasso Roumeliotis, 86% of service advisor calls go unanswered, frustrating customers who just want a status update. AI can bridge that gap by handling routine inquiries, freeing up staff to focus on high-value interactions.

With dealership profits normalizing post-pandemic—operators are under pressure to maximize efficiency. Whether they dive in or take a cautious approach, one thing is clear—this technology isn’t slowing down … (Go deeper: 4 min. read)

Three opportunities hitting the CDG Job Board right now:

• Van Horn Automotive Group: General Manager (Wisconsin).

• Rusty Drewing Automotive Group: BDC Manager (Missouri).

• CarNow: Account Manager (remote).

Looking to hire? Add your roles today—it’s 100% free.

• Nissan’s turnaround plan takes shape after failed Honda merger.

• Scout Motors can build in S.C.—but no direct sales allowed for now.

• GM and Ford aren’t staying quiet on tariff impacts anymore.

• 76% of drivers are skipping connected car subscriptions.

• General Motors is retiring the gas-powered Chevy Blazer after 2025.

That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

Thanks for reading. Hit reply and let me know if you found this edition of The Weekly valuable or have any feedback. I’ll see you next weekend.

— CDG

Want to advertise with CDG? Click here.

Want to be considered as a guest on the CDG podcast? Right this way.

Want to pitch a story for the newsletter? Share it here.