For decades, car buying has ranked among the most frustrating consumer experiences. Pricing is opaque, dealerships typically employ aggressive sales tactics, and buyers and sellers find the process to be riddled with inefficiencies. The system, built around outdated incentives and misaligned priorities, has long been in need of a shakeup. And now, as artificial intelligence transforms industries across the board, one small business startup is boldly leading the charge to bring trust, transparency, and fairness back to auto retail.
CarEdge is disrupting the car buying process from both ends—helping buyers make smarter, faster, more confident decisions while equipping dealers to operate more efficiently in a data-driven age. By harnessing the power of agentic artificial intelligence (AI), CarEdge is redefining how vehicles are researched, negotiated and purchased in a way that greatly benefits both buyers and sellers.
Q: Why is the traditional car-buying process broken for both buyers and dealers?
ZS: The current system is a losing game for everyone. On the consumer side, trust is at an all-time low, with car salespeople consistently ranking at the bottom of Gallup’s trustworthiness survey. This is a direct result of a lack of pricing transparency, confusing add-ons, and a generally adversarial environment.
For dealers, this broken system hurts their bottom line. They face a staggering 72 percent sales staff turnover rate, a statistic that’s double that of other roles in the dealership. A major reason for this is “lead bloat” from third-party platforms that flood dealerships with a high volume of unqualified leads. The average dealership converts only about 2 percent of these leads into sales, leading to wasted time and resources. This misalignment—where platforms profit from lead quantity, not quality—leaves both consumers and dealers dissatisfied.
Q: What’s the root of the distrust between car buyers and sellers?
ZS: Trust is at an all-time low. Only 7 percent of Americans say they trust car salespeople, according to Gallup. That’s dead last across all professions. But it’s not just perception—it’s the process. Many consumers are hit with hidden fees or bait-and-switch pricing. Meanwhile, dealers are overwhelmed by lead bloat and poor retention. The turnover rate for dealership sales consultants is nearly 72 percent. The system burns everyone out.
Q: How is AI uniquely positioned to fix these problems?
ZS: AI is the key to bringing this industry into the 21st century. We’re already seeing a massive shift, with 90 percent of dealerships experimenting with AI tools and 25 percent of consumers using tools like ChatGPT to research their next vehicle. The way people access information is fundamentally changing, and car shopping is no different.
Agentic AI takes this a step further by creating intelligent agents that can act on behalf of consumers and dealers. Instead of sifting through countless listings, a consumer’s AI agent can vet information and present a curated list of options. This ensures that when a customer is ready to engage with a dealership, it’s a high-quality lead. For dealers, this means less time chasing “ghosts” and more time closing deals with informed, motivated buyers.
Q: How does this new technology specifically address the dreaded process of negotiation?
ZS: Negotiation is a perfect example of where agentic AI can level the playing field and drive efficiency. It’s one of the few major purchases where consumers are expected to haggle, putting them at a disadvantage against salespeople who do it every day.
With AI, a consumer’s agent can handle the negotiation on their behalf. Instead of a buyer scrolling through hundreds of listings, calling multiple dealerships, or engaging in stressful negotiations, an AI agent can handle it all. It compares offers, spots hidden fees, and negotiates on your behalf.
Q: How does this model benefit honest dealers who are already trying to build trust?
ZS: AI is a powerful tool for rebuilding trust and rewarding transparency. The current system is rife with deceptive pricing practices, with online advertised prices often differing significantly from the final out-the-door price due to hidden fees and add-ons. This not only frustrates customers but also hurts reputable dealers who don’t play these games.
Agentic AI solves this by collecting and publishing real, out-the-door pricing data from thousands of dealerships. We can identify which dealers are transparent and which are adding “mandatory” fees, such as for nitrogen tire fills. This allows honest dealers to stand out in a crowded market, giving them a competitive edge and helping them attract more sales from informed, trusting buyers.
In a space where the status quo no longer works, CarEdge is doing what few others have dared to do: rewire the industry from the inside out.
The author, Merilee Kern, MBA is an internationally regarded brand strategist and analyst. Connect with her at LinkedIn.