Dealers have spent the last three years rushing to buy digital tools, but many stores are now less efficient than before they started.
A new study by Cox Automotive reveals that 97% of dealers report customers completing steps online, then repeating the exact same work at the dealership. Credit applications, vehicle configurations, trade appraisals… customers do it all twice because dealer systems can't share basic information.
The root cause: According to Cox, 62% of dealers use multiple online retailing systems, but with data inconsistencies and lack of integration, these systems often create data silos instead of eliminating them (more on this in the most recent CDG Dealer Outlook Survey).
And a separate study from Fullpath shows what happens on the other side of these broken systems.
Only 5% of customers complete car purchases entirely online, but most do 26-50% of the work digitally before visiting the store. And when dealers can't deliver that seamless handoff, customers get frustrated.
Fullpath found 90% expect to pick up in-store where they left off online. Instead, they're frequently forced to repeat information they've already provided.
Via Fullpath
And this disconnect costs dealers directly. Cox found that buyers who complete more steps online save 42 minutes at the dealership when systems work together. When they don't, digital tools actually extend sales cycles instead of shortening them.
Yes but, for dealers that report higher close rates, better profit margins, and improved employee satisfaction, the difference comes down to AI and integration. Dealers that achieve 91% satisfaction with their digital tools are 49% more likely to use AI capabilities and focus on fewer, better-connected systems rather than trying to manage multiple disconnected tools, says Cox.
The reason: Customers are embracing AI faster than many realize. Fullpath shows 62% are comfortable using AI for car purchase advice, with 17% of younger shoppers already doing it.
Via Fullpath
Big picture: Better integrated tools (AI or not) improve staff productivity, which typically improves customer experience, which drives referrals and repeat business. Meanwhile, dealers with fragmented systems watch costs rise as inefficient processes consume more staff time per deal.
But the path forward isn't necessarily buying more tools—it's making existing tools work together.
Dealers who solve integration bottlenecks and unify customer data are pulling ahead rapidly.
They capture the efficiency gains digital tools promised while competitors struggle with expensive, disconnected systems.
Bottom line: Most dealers have the capabilities customers want. The missing piece is making every system communicate with each other. The dealers who solve this integration challenge first will capture disproportionate market share while their competitors burn money.
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