How AI could change your car-buying experience

How artificial intelligence can change your car buying experience

Post-pandemic, the traditional car buying process has undergone a major shift to accommodate stay-at-home orders that prevented buyers from heading to dealerships.

Shopping can change again as artificial intelligence (AI) enters the space. Professionals encourage buyers to rely on the help of script generation software to get behind the wheel of their perfect car.

However, AI may not be appropriate for every type of driver. This requires the same kind of consideration as online versus in-person financing experience. Consider the AI experience and how you can benefit from it when shopping for your next car.

Why the auto industry thinks AI-assisted shopping is the future

Edmunds Chief Innovation Officer Nick Gorton suggests two main benefits of using AI in the car buying space: a helping hand while bargaining and a more personalized shopping experience. The online car company recently developed a ChatGPT plug-in that enables drivers to take advantage of Edmonds' expert advice, inventory data and AI-powered shopping reviews.

The plugin uses real-time data directly from Edmonds to build on suggestions from the predictive text generator. Also, the plugin fills a huge knowledge gap that can't be reached by the AI product alone - ChatGPT only has information until 2021.

According to Edmunds, this device can:

• Check vehicle list and rating.
• Summing up the car review.
• Buyers Guide.
• Find local inventory.

Gorton says the new platform is different than just shopping online.

You may start with a discussion question, add some context, and then tweak this guidance, he suggests.

This is especially useful for buyers who are going into the car buying process completely blind and needing some hand-holding in deciding what type of car they want to buy.

Artificial intelligence can level the negotiation arena.

Today, many drivers bring their arguable friend into the dealership to ensure that negotiations go off without a hitch. But with the help of artificial intelligence, even drivers who hate hustle and bustle may have a better chance of driving with a good deal.

With advanced tools, drivers can take a look behind the scenes and better understand expected costs, available vehicles, and which car is best for them. Now that's not what the selling bible says. When trying to cut prices, you can use general customer information to create an AI script that makes negotiation an easy process.

While it is possible to search the internet for this information, the AI can search for it and summarize it for you, which reduces searching.

"Drivers of all experience levels, all background levels get the same experience and hopefully get better at negotiating," Gorton explains.

Gorton sees AI aid as a method to remove prejudice in the purchasing process. Assume you're a female buyer who has previously been taken advantage of when shopping for a car. Start your buying journey with AI to get an unbiased view of the right car for you.

However, this approach does not fully address the problem of bias. To close the deal, you must visit the dealership in person and make a credit withdrawal, revealing your full identity. The only way to get rid of biases is to search, shop and buy through AI software.

Buyers can get personalized advice

When setting out to buy a car, it is impossible to walk into a dealership and expect advice that is tailored to you and your needs. Traders have ulterior motives based on profit.

By interacting with AI, buyers can instead get highly accurate and specific details of their needs.

Gorton cites an example of the type of driver that AI plug-ins can reach. "I'm a mother with three kids from the Pacific Northwest on a limited budget who loves to ski," I stated.

For some, like this fictional mom of three, asking simple questions and getting sound advice feels like a dream come true. But others may prefer to go from dealer to dealer to see their options, or check online forums like Reddit and hear from fellow drivers.

Traditional resources versus AI procurement

Big Perks proponents argue that AI provides personalization. You can ask dealers for advice on which car to recommend, but their ability to earn commission may bias their answers.

The main difference between traditional shopping and the use of artificial intelligence comes in the initial search process. When shopping in the not too distant past, drivers researched vehicle options simply by going out to dealerships, chatting with friends, and searching online databases.

Although this road isn't going away anytime soon, it suits some drivers better than others. People who, for example, have their eyes set on a specific brand of car, can simply approach the dealership with their request.

On the other hand, drivers who enter the process without this information may not know which vehicle they are shopping for - making it even more difficult to find.

This makes AI-assisted car buying a great option for someone looking for an outside perspective on the right car.

My experience using artificial intelligence to buy my car

Borrowers can add the ChatGPT plugin to their account to take advantage of personalized advice based on Edmunds' extensive catalog of reviews and articles, as well as the ability to view local inventory. But you'll need an OpenAI Plus subscription to add the plugins, which cost $20 per month, which I don't have access to.

However, I took some time to explore ChatGPT's perspective on the best car for the young city dweller who wants to drive an electric car. I asked him the following question: What kind of car should I get as a guy interested in EV driving?

This is what my experience looked like.

Ask a question. At first the tool asked a simple question based on my wants and needs. In this case, I was somewhat blindsided—all I knew was that I wanted to buy an EV. The tool first suggested what I was looking for in a car, taking into account aspects such as price, size, and safety features.

Talk back and forth. A list of five different EV options was presented, including the Tesla Model 3 and Kia Niro EV. Then I asked about the pros and cons of the two cars mentioned above. Outside of the tool, I checked the claims against the information from real drivers and found they were all true. Again, this is a much smoother and more transparent approach than asking the agent for the same advice. After carefully weighing the advantages and disadvantages of each, I determined that the Kia Niro was the greatest fit for my needs. It was priced significantly less than the Tesla and boasted very positive reviews on Tool's recommendation.

Use new information to shop in person. Now that I had a solid understanding of the type of vehicle I wanted to buy, a Kia Niro EV, I was able to start the buying process. To do this, I decided to close ChatGPT and find the nearest Kia dealer. At this point, I will be ready to speak with the dealer, who will be completely informed and confident about the vehicle I desire.

Next Steps

New technology, like conversational AI, can feel intimidating and overwhelming. But when used correctly, it can help some drivers better understand and negotiate the right vehicle and their needs, which can also save you money. If you're planning to buy a new or used car this summer, consider how artificial intelligence can help speed up the process.