AI and Vehicle Research: The Disadvantages of AI-Informed Car Shoppers

Car shoppers are increasingly turning to AI to guide their research across financing, timing and vehicle selection. Salesforce data shows that 79% of Generation Z shoppers want AI agents to find and recommend the best car for their needs. This mirrors CDK data about customers who prefer booking service appointments with AI assistants; Gen Z leads the way at 51%. However, this shift toward AI introduces new challenges that dealers must navigate carefully.

How AI Is Changing the Car-Buying Process

Unlike traditional search engines, AI acts more like a consultant, helping buyers narrow down their search, understand potential red flags, and determine which trim fits their needs and budget. Instead of simply suggesting a minivan for every parent, AI can factor in car seat configurations, towing needs, headroom requirements and budget constraints to recommend vehicles buyers may not have considered otherwise. 

While these customers arrive more informed about vehicle selection, they’re also armed with AI-generated information about the entire process, including financing options, market conditions, negotiation strategies and timing tactics. 

The challenge isn’t that customers are more knowledgeable; it’s that the information they have isn’t always accurate, current or realistic. Here are three major disadvantages of AI-informed car buyers:

1. Incorrect Information Creates Overconfident Customers

The car market evolves constantly, with pricing, incentives and offers changing week to week. When customers use AI to research availability, specs or pricing, there’s a high chance the information is outdated or specific to the wrong market. 

Common AI errors include:

• Presenting discontinued trims or features as current options 
• Pulling pricing from different markets or time periods
• Confusing or conflating model specifications
• Referencing unreleased features or concept models shown at industry events

Because AI presents information in a seamless, conversational format — without requiring users to click through to source links like traditional search engines — customers often miss the red flags that would otherwise tip them off to questionable information or expired offers. They’re getting answers but not necessarily the correct ones. 

For customers to get accurate results, they'd need to specifically instruct AI to use only reputable sources, such as OEM websites, and restrict its scope to their market. Even then, AI can “hallucinate” answers or forget earlier instructions as the conversation continues. The issue worsens when customers use free versions of AI tools, which often have limited access to the most current, accurate information.

2. AI Creates Unrealistic Expectations

Car buyers today have more access than ever to the inner workings of the process, through forums, social media influencers, and now AI. These tools present negotiation strategies and behind-the-scenes dealership insights and feed them to buyers as surefire advice. 

This creates unrealistic expectations. For instance, a customer might receive a strategy instructing them to buy out their lease and then trade in to the dealership for a profit. This move made sense from 2020 to 2022, when supply constraints drove up used car values. That may not be the case when they walk onto your lot today. 

3. AI Sends Customers Beyond Their Market

Perhaps the most concerning disadvantage is how AI can send customers shopping beyond their local market. When customers narrow their search to a specific vehicle and price point, then ask AI for the “best dealership for the best deal,” they’re not necessarily getting recommendations limited to their area. A customer in Texas might receive recommendations for dealerships in Colorado or Michigan, using online pricing that doesn't factor in shipping, regional incentives or local taxes. 

These customers may arrive at your dealership (if they show up at all) having already "shopped" competitors hundreds of miles away, armed with pricing expectations that don't reflect their market reality. 

Help AI-informed Buyers During the Purchase Journey

AI-informed customers aren’t going away. In fact, they might be multiplying. While CDK research shows that 31% of all customers currently prefer using AI assistants to book service appointments, as we mentioned earlier, Gen Z leads that trend. As this generation becomes a larger share of car buyers, dealers who haven't adapted might find themselves at a disadvantage. 

The key is to understand that the customer sitting across from you may have a mix of excellent insights and completely incorrect assumptions. Your salespeople may not spend time educating them about vehicle options anymore. Instead, they're helping customers separate valuable information from noise and guiding them toward real solutions that work in their market.