TLDR: New research from Startline Motor Finance indicates that nearly two-thirds of car dealers are now integrating Artificial Intelligence (AI) into their operations. The technology is primarily being utilized for customer-facing roles such as lead handling, vehicle selection, and finance options, with mixed but generally positive feedback on its effectiveness.
A recent study by Startline Motor Finance, published on October 10, 2025, highlights a significant surge in the adoption of Artificial Intelligence (AI) among car dealerships. The research reveals that a substantial 62% of car dealers are currently employing AI within their businesses, a figure considered ‘surprisingly high’ given the nascent stage of specialized AI products for the automotive retail sector.
Paul Burgess, CEO at Startline Motor Finance, commented on the findings, stating, ‘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.’ He further noted a distinct trend in AI application: ‘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 functions, traditionally considered core expertise of dealership staff, are now being augmented by AI.
The October 2025 Startline Used Car Tracker, which informed this research, detailed the specific applications of AI. Approximately 38% of dealers are leveraging AI to assist car buyers in identifying the most suitable vehicle, while 31% use it for initial customer contact management. Additionally, 26% of dealerships utilize AI to help consumers navigate and select the best finance options available.
Despite the growing adoption, dealer sentiment towards AI is varied. While 10% of dealers reported AI integration as successful, 8% found it unsuccessful. Burgess acknowledged the ambiguity of these figures, suggesting, ‘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.’ He added, ‘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 its full potential.’
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Some dealers remain hesitant, with 18% expressing satisfaction with their existing processes, 16% unconvinced of AI’s tangible benefits, and 6% believing the technology is not yet sufficiently mature for widespread implementation. Nevertheless, the overall trend points towards a growing integration of AI, particularly in enhancing customer interactions and streamlining initial sales processes within the motor finance sector.
