Urban Science dropped their third annual Dealership Transformation Index, which measures the overall health and transformation of U.S. dealerships with scores ranging from critical (<45) to resilient (75+).
This year’s DTI score crept up to 56 – still not quite "strong" but showing progress.
On the other hand, dealer relevance improved by two points, reaching a healthy score of 62.
Dealers across the country still cite inflation and other economic factors as their primary nemesis these days.
😓 Dealers’ Top Worries:
Buyers are slowly waking up to the value of dealer expertise, with 35% now agreeing that salespeople actually know their stuff – up 5% from last year.
😓 Buyers’ Biggest Concerns:
With affordability being a top concern among shoppers, it makes sense that price is how most consumers choose their dealership.
⭐️ Top Reasons for Choosing Dealerships:
Despite all the digital buzz, 91% of buyers still show up in person at dealerships. But the digital shift is real:
Especially because of affordability concerns, the study shows that adding monetary incentives for buyers is a sure-fire win. Offering even as little as $35 shows positive results.
AI is shaking things up in every facet of our industry, but especially in sales and marketing. Trend resistance dropped to 52, showing buyers are continuing to warm up to online car-buying.
AI is also sprucing up lead management with auto responders, automated texting, and chatbots. But it’s not all smooth sailing. Some of the biggest drawbacks are:
