As dealership profitability declines and consumer expectations rise, automotive retailers are under pressure to deliver a seamless, transparent, and efficient car-buying experience. On the latest episode of Driving Solutions, Brendan Reardon, Associate Vice President of Sales at Cox Automotive, joins us to discuss how dealers can address today’s market volatility with data-driven tools and shopper-centric strategies.
According to Reardon, he acknowledged the uncertainty facing dealers in 2025, pointing to a 30% drop in profitability compared to 2022. This decline is fueled by rising floor plan costs, increased advertising expenses, and broader economic volatility, including tariff announcements. To remain competitive, Reardon stressed the need for dealers to focus on improving lead conversion and enhancing the overall shopper experience.
To address lead conversion challenges, Reardon emphasized the importance of data-backed tools. He highlighted VinSolutions’ predictive insights, which help dealers prioritize the most engaged leads and identify active shoppers—even those who haven’t yet contacted the dealership—using data from platforms like AutoTrader, Kelley Blue Book, and Dealer.com. These insights allow dealerships to proactively bring more buyers into the funnel.
Additionally, Reardon introduced VinSolutions’ new generative AI solution, which instantly creates professional, personalized communications. Combined with Cox Automotive’s automated marketing platform, this tool allows dealerships to tailor outreach efforts, improve engagement, and streamline their sales workflows.
Regarding consumer pain points, Reardon stressed that today’s car buyers want to “buy a car, not be sold one.” They expect a transparent, collaborative process, which inspired Cox Automotive’s development of Deal Central, an AI-powered deal-making solution. Deal Central enables real-time collaboration between sales staff and customers, allowing deals to be customized and finalized using a tablet or desktop, with consistent pricing across online and in-store channels.
Transparency, consistency, and choice were central themes throughout the interview. Reardon noted that seeing different payment terms online versus in-store can severely damage consumer trust. Instead, he encouraged dealers to provide transparent vehicle pricing, honest communication, and deal customization options across all touchpoints.
As proof of success, Reardon cited early results from dealerships using Deal Central:
- 2x higher close rate
- 15% increase in back-end profit
- Hundreds more in profit per deal
Moreover, he shared that consumers are satisfied with their buying experience are:
- 4.5 times more likely to post about it on social media
- 3 times more likely to recommend the dealer
- 3.5 times more likely to buy from the dealer again
In closing, Reardon emphasized that long-term success hinges on integrating three key components: deep data, relevant communications, and collaborative deal-making. “The magic happens when all of these pieces come together,” he said.
“Consumers who are satisfied with their carbine experiences are four and a half times more likely to post about it on social media, three times more likely to recommend you, three and a half times more likely to buy from you again.” – Brendan Reardon.
