Is your revenue team ready for what's next?
One of the most immediate and significant challenges facing auto retailers in 2025 is the resurgence of tariffs. The U.S. has reinstated and expanded tariffs on imported vehicles and automotive components, many of which are sourced from Mexico, China, and other key manufacturing partners.
For example, Ford increased prices on Mexico-produced models by up to $2,000 to offset an estimated $2.5 billion in added costs due to these tariffs.
According to S&P Global, as much as 45% of light-duty vehicles sold in the U.S. may be affected, with price increases projected between 10–15%. Cox Automotive further notes these rising costs could result in declining affordability and slower sales.
Dealers are being forced to adapt—fast.
In this challenging sales environment, fixed operations—particularly service and parts—are becoming critical for sustaining profitability. According to the National Automobile Dealers Association (NADA), U.S. dealerships wrote over 270 million repair orders in 2024, generating $156 billion in service and parts revenue.
Additionally, BCG reports that the average vehicle age on U.S. roads has increased to 12.6 years, a sign that Americans are holding onto their vehicles longer—leading to higher maintenance and repair needs.
With margins from new vehicle sales under pressure, the service lane is not just a support function—it’s a growth engine.
AI agents, like those offered by Conversica, are transforming the way auto dealerships engage customers, manage operations, and drive revenue. These AI-powered digital workers automate and scale critical workflows, enabling dealerships to do more with fewer resources—faster.
Here’s how AI agents are generating tangible ROI today:
According to Conversica internal data, dealerships using AI assistants see a 33% increase in lead engagement. One customer noted:
“We went from taking 24–48 hours to respond to leads to doing it instantly, 24/7. Our appointment rates jumped almost overnight.”
By automating responses to leads around the clock, AI agents ensure no opportunity slips through the cracks.
AI agents are ideal for following up on declined services, recall notices, and overdue maintenance. Dealerships using Conversica’s AI for these touchpoints have reported a 20–30% increase in service appointments—simply by reaching out proactively when staff are too busy to follow up.
A Midwest dealer group using Conversica’s AI for service follow-ups and check-ins saw a 17% improvement in customer retention in just 12 months. These personalized, post-service touchpoints create ongoing engagement, which leads to more loyalty and more repeat business.
Personalization is no longer a luxury—it’s a consumer expectation. But most dealerships don’t have the time or tools to execute true 1:1 personalization. That’s where AI comes in.
Conversica AI agents can analyze CRM and DMS data to craft messages that include a customer’s name, vehicle model, service history, and even mileage-based maintenance prompts. This goes far beyond “generic reminders.”
According to the 2024 Fullpath AI Sentiment Report:
It’s not just customers who benefit. AI agents alleviate pressure on dealership staff—especially in BDC and service departments. These AI workers don’t take breaks, don’t miss calls, and never forget a follow-up.
A Southern California service director said:
“Conversica’s AI gave my team time back. We now spend more time solving customer problems and less time chasing them.”
AI agents act as digital teammates—handling thousands of conversations simultaneously so human staff can focus on high-value tasks.
Dealerships today are dealing with:
Each of these pressures can be addressed—at scale—with the strategic use of AI agents. Those who act now will find themselves at a significant competitive advantage. Those who wait may find themselves playing catch-up in an increasingly digital and data-driven market.
Conversica’s AI agents are already proving themselves across hundreds of dealerships—helping increase engagement, boost service lane volume, and unlock new revenue.
The message is clear: Dealerships can no longer afford to think of AI as a futuristic nice-to-have. AI agents are working today, solving real business problems, delivering measurable ROI, and creating better customer and employee experiences.
Want to thrive in 2025? Start scaling with AI now.
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