The car buying experience is rapidly shifting, and customers are the ones setting the rules. Dealers who recognize this shift will thrive, and those who don’t will likely be left behind. In today’s episode of Inside Automotive, Peter Cooper, president and CEO of Lexus of Lehigh Valley, discusses shifts he’s witnessing in retail automotive and how dealers can get ahead to remain competitive.
Cooper keeps a close pulse on politics because it profoundly affects business. He highlights that every time the administration changes hands, it resembles how a pendulum swings. However, the recent political shifts have been more like a wrecking ball than a pendulum. The Trump administration’s policies could significantly impact the automotive industry. However, the exact effects remain theoretical. The industry must learn to navigate the economic and political uncertainty while remaining focused on customers’ needs.
Artificial intelligence (AI) has tremendously impacted the automotive retail experience and is shifting customer behavior. Data shows that 60% of customers trust technology over human interaction, and consumers are more informed now than ever before. They often arrive at the dealerships with detailed knowledge surrounding pricing, trade-in values, and financing options. Dealerships must shift how they engage with customers and rethink their sales strategies to meet new consumer expectations and provide a better car buying experience.
Traditional sales models heavily reliant on commission-based pay and negotiation tactics are quickly becoming outdated. Instead, dealerships need to focus on new strategies that prioritize the customer experience first and foremost. Consumers no longer tolerate high-pressure sales tactics or long, drawn-out negotiations. Instead, they expect transparency, efficiency, and a process that aligns with how they buy other big-ticket items.
Cooper emphasizes that dealers who fail to adapt will struggle to attract and retain top talent. Sales professionals today want financial stability, benefits, and work-life balance—elements that traditional commission-based structures often fail to provide. Creating a workplace culture that supports employees and encourages long-term careers is just as crucial as improving the customer experience.
Cooper’s team at Lexus of Lehigh Valley has seen great success by shifting to this technique, leading to 26 consecutive months of year-over-year growth. By removing friction from the buying process and aligning dealership operations with modern consumer expectations, his team has built trust and driven sustained success.
As the industry continues to evolve, one thing is clear: the dealerships that embrace change and put customers first will be the ones that thrive in the future of automotive retail.
"The only way that we can continue to flourish is that we learn to lean into chaos. It's going to be with us, and it's happening faster and faster. We can't get distracted by it, but we need to embrace it." – Peter Cooper
