In 2026 and beyond, auto dealers will navigate a rapidly evolving landscape shaped by three converging forces: AI-powered consumer behavior, persistent affordability pressures, and shifting demand toward pre-owned inventory. These trends are creating both challenges and opportunities, and the dealers who understand how to adapt will be best positioned for success.
The key is recognizing that technology isn’t just about efficiency. When applied thoughtfully, it becomes the foundation for stronger, more profitable customer relationships that extend well beyond a single transaction.
Here are five predictions to watch for:
Prediction 1: AI Shopping Assistants Will Become Part of the Journey
Starting in 2026, expect to see AI tools like ChatGPT moving beyond research to actively participate in car purchases. These assistants will likely gather trade-in valuations, summarize dealer responses, compare incentives across markets, and surface the best listings for consumers. They’ll make cross-shopping more effortless than ever.
This creates a new opportunity. When an algorithm evaluates your inventory, consistent pricing, complete descriptions, and accurate data become competitive advantages. Your digital presence will increasingly need to serve both human visitors and AI-powered assistants. Inventory feeds, pricing logic, and offer structures that are consistent and credible will stand out.
The encouraging news? According to recent Cox Automotive research, while 80 percent of dealers already use GenAI tools, there’s room to grow confidence. Currently, only 24 percent feel fully confident in their implementation. Starting in 2026, dealers who invest in training, governance, and trusted partnerships can turn this into an advantage. AI can help predict maintenance needs, personalize trade-in timing, and identify customers who value convenience and service excellence.
Of those surveyed in Cox’s study, 66 percent of dealers want more education and training on AI, and 70 percent expect it to become standard in dealership software. This presents a clear path forward for dealers ready to invest in building capabilities.
Prediction 2: True Omnichannel Will Gain Momentum
By 2026, omnichannel will increasingly deliver on its original promise: seamless continuity across every touchpoint. Dealers with integrated platforms will enable shoppers to start browsing at home, pause to handle other priorities, and resume from their phone hours later with every detail preserved. No duplicate data entry. No lost context. No starting over.
This shift will strengthen customer loyalty. When dealers can meet buyers wherever they are (across a desk, via text, through video chat), the experience becomes more personal and less transactional. Customers who feel their time is respected and their preferences are remembered are more likely to return.
Dealers making this investment will find it easier to compete on the quality of their process, not just on price. In 2026 and beyond, reducing friction will be an increasingly important competitive advantage.
Prediction 3: Transparency Will Continue to Evolve
Information access will likely reach new levels in 2026. Consumers will increasingly arrive with real-time market data, competitive pricing, and AI-generated payment scenarios. They’ll have compared inventory across platforms and done extensive research before reaching out. They will be able to check the strength of the offers you put in front of them real-time, leveraging Large Language Models.
The most successful dealers will likely be those who lean into this transparency. Interactive deal-building solutions enable dealers to walk customers through every variable (down payment, term length, protection products) and show in real time how each decision affects the outcome.
This collaborative approach builds trust. When customers understand the options and make informed choices alongside the dealer, they tend to buy with greater confidence. Dealers who embrace transparent, consultative selling will be well-positioned as customer expectations continue to evolve. To be clear, transparency, trust and profitability are not opposing forces when your sales team is trained to build value into the deal.
Prediction 4: Connected Data Will Unlock New Possibilities
Starting in 2026, better data connectivity across dealership systems will help dealers deliver more personalized experiences. When customer information flows seamlessly between departments (sales, service, digital interactions), dealers can spot opportunities that might otherwise be missed.
For example: a service customer declines an expensive repair. With connected data systems, the sales team can proactively reach out with a trade-in offer that aligns with their budget and history. The customer receives timely, relevant outreach rather than generic marketing.
While solutions vary in their approach, the principle remains the same: unified customer data enables smarter, more coordinated engagement across the dealership. Dealers who invest in better data connectivity will be positioned to build longer-term relationships where each interaction feels relevant. And those who lean on partners who can contribute data will be further ahead.
Prediction 5: Affordability Will Continue to Shape Strategy
Economic factors will continue influencing buyer behavior in 2026. With one in three consumers planning to purchase within 12 months despite elevated prices and interest rates, demand remains healthy, but the path to purchase is shifting. More shoppers are gravitating toward pre-owned vehicles, and inventory under $20,000 will likely remain limited while all-cash transactions increase.
Dealers who clearly communicate value (reconditioning investments, service history, warranties) and help buyers understand total cost of ownership will be well-positioned. As the market evolves, aligning inventory and financing strategies to meet buyers where they are will be increasingly important.
2026: Building the Foundation for Long-Term Success
The technology enabling stronger customer relationships is becoming more accessible. AI tools are maturing. Omnichannel platforms are proven. Data integration is increasingly achievable. Starting in 2026, dealers who invest in these capabilities and build the right partnerships will be positioned to deliver exceptional experiences.
Related Stories:
Paulo da Silva leads the Digital Commerce business at Cox Automotive, which includes eCommerce, CRM, Marketing Automation, and Deal Structuring. With 14+ years’ experience leading digital businesses, he has built an international career growing high-ticket item ecommerce businesses through strategy, execution, and cross-product integration. Paulo earned a B.S. in Electrical Engineering from the University of São Paulo and an MBA from The Wharton School, University of Pennsylvania.