Dealer and brand websites generated higher-quality leads than third-party sources in 2025, even as overall lead volumes declined and consumer engagement patterns continued to evolve, according to Shift Digital’s latest report on automotive shopping trends.
Joining us on the latest episode of CBT Now is Matt VanDyke, President of Shift Digital, to discuss the results of the latest report further.
According to VanDyke, the report characterized 2025 as a “roller coaster” year shaped by policy changes, pricing uncertainty, and shifting consumer timing. Early in the year, concerns over potential tariffs drove a pull-ahead in demand, resulting in strong double-digit increases in shopping activity during the first quarter.
He also noted that activity softened in the second quarter as uncertainty grew, before rebounding in the third quarter following the repeal of the $7,500 EV tax credit and the approach of a September 30 deadline. By the fourth quarter, pricing reached near all-time highs, while lead volume and close rates declined despite continued consumer interest.
One of the most notable shifts came in how consumers engage with dealerships online. Form completions, VanDyke said, dropped 18% by the fourth quarter after remaining flat or increasing earlier in the year. However, the decline did not indicate weakening demand. Instead, it reflected a broader change in behavior, with consumers increasingly seeking information without submitting personal data.
In 2024, dealers received two phone calls or chat interactions for every one website lead. In 2025, VanDyke noted that figure rose to 2.7 calls or chats per lead. The data suggests consumers are relying more on direct, real-time communication channels while expecting greater transparency and information upfront on dealership websites.
Despite the decline in traditional lead volume, dealer and OEM websites continued to outperform third-party sources in both quality and close rates. Shoppers who engage directly with dealer sites are more likely to view specific inventory and pricing, resulting in stronger purchase intent. The findings reinforce the importance of continued investment in local marketing strategies that drive traffic to dealer-owned platforms.
At the same time, the report highlights ongoing operational challenges at the dealership level. VanDyke said that slower response times, inconsistent follow-up, and missed inbound calls continued to impact conversion rates. That data suggests that responding quickly is not enough. Providing accurate, complete information while the customer is still actively shopping is critical to improving outcomes.
“What gets measured, gets done.”
Meanwhile, top-performing dealers focused on both speed and quality of engagement, ensuring responses included verified inventory details, pricing information, and, in some cases, personalized video communication. Vandyke believes that consistent monitoring of both digital leads and inbound calls also played a key role, with accountability and performance tracking helping drive improved results.
Website strategy became a crucial differentiator, with some dealers optimizing their websites and those with limited calls to action experiencing higher engagement. Effective practices involve emphasizing key tools, such as payment calculators and trade valuation, while preventing users from feeling overwhelmed by too many options. The report indicated that dealers offering value upfront before asking for personal details saw a modest reduction in lead volume but a 33% higher close rate.
Broader market conditions also impacted how shoppers behave. Concerns about affordability, high vehicle prices, and ongoing economic uncertainties led to changes in engagement patterns. Although overall industry sales remained steady at around 60 million units, the way consumers navigated the shopping process continued to evolve.
Looking ahead to 2026, the report points to artificial intelligence as both an opportunity and a challenge for dealers. While AI-powered tools are becoming more prevalent, the key to successful adoption lies in identifying specific operational needs. High-impact applications include lead nurturing, follow-up automation, and service scheduling, particularly in managing increasing call volumes.
