Study finds many dealers fall short on key lead processes

A study by customer data and experience platform  DAS Technology, released at the 2025 NADA Show, suggests that dealers routinely miss out on several sales opportunities during a customer’s car buying journey, by not following through on some fundamental steps with leads.

By the numbers:

The 2025 Lead Response Study, which analyzed lead responses from 1,700 (non-DAS) dealerships during Q3 and Q4 of 2024, found improvements in response times but highlighted persistent gaps:

• 19% of dealers surveyed took over an hour to respond to leads, an improvement from 33% in 2023, but still an area of concern.

• 61% of dealers responded to a lead within 15 minutes or less, an increase from 55%, though the 2024 numbers suggest that nearly 40% of dealers took more than 15 minutes to respond.

• 4% of dealers did not respond at all, leaving leads on the floor, but the study did show a slight uptick from 2023 when 9% of dealers did not respond.

Big picture: The study found that some dealers respond to customers’ questions with generic replies rather than providing potential buyers with detailed information that can help to seal the deal. 

• 26% of dealers did not include information about the submitted vehicle, an improvement from 19% in 2023 but still substantially low to meet consumer expectations.

• 90% of dealers did not include multiple photos of vehicles last year, which is only 6% better than previous findings.

• A whopping 74% of dealers did not include a price quote in their response in 2024, an 8% increase from 2023.

Zooming in: But more and more dealerships are using AI to address these gaps, automating and enhancing the way dealerships manage leads. AI-powered tools can analyze incoming inquiries, generate personalized responses, and ensure key details are included.

The goal? Unifying fragmented processes.

Bottom line: Leads are the lifeblood of a dealership’s sales funnel, and failing to handle them effectively means leaving money on the table. While speed matters, it’s only part of the equation—dealers need to prioritize clear, detailed communication to build trust and convert leads into sales.

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