The customer path to automotive purchases is shifting heavily towards a digital focus, as AI becomes more prominent in the buying journey, according to new research from Close Brothers Motor Finance (CBMF).
Two thirds (66%) of motorists now incorporate artificial intelligence (AI) into their car-buying journey, marking a definitive shift away from traditional research and buying methods. The research highlights that AI is no longer a futuristic concept but a practical tool for the modern motorist. This trend is set to continue, with 60% of motorists stating they are likely to use AI as a core part of their decision-making process for their next vehicle purchase.
Motorists are primarily leveraging AI to manage the information-heavy aspects of the purchase process. A third (33%) of buyers use the technology to compare vehicle specifications and narrow down their choices, while 31% rely on AI to verify safety ratings and owner reviews. Beyond the vehicle itself, AI has become a financial calculator for the forecourt; 28% of users utilise it to estimate total cost of ownership - including insurance, fuel, and maintenance - while nearly a quarter (23%) use it to benchmark fair market pricing.
The technology is also playing a pivotal role in the transition to greener transport. Approximately 16% of motorists now use AI to demystify the environmental impact of their choices, specifically comparing the long-term benefits of electric vehicles versus petrol models.
John Cassidy, Managing Director at Close Brothers Motor Finance, commented: “The shift towards heavy AI usage in the car buying process cannot be overlooked. However, while AI provides the data, it currently lacks the localised expertise and emotional intelligence to fully understand customer needs and explain the various options available. While it handles the ‘what’ and ‘how much’ elements with relative ease, it is less thorough with the ‘why’ factor, and cannot offer the peace of mind that comes with physical components such as speaking to an expert or inspecting a vehicle in person.
“This is why dealers still have a crucial role to play - though the value may have shifted. Customers now arrive at showrooms with more data than ever before, so dealers should be prepared for this, and be able to interpret this effectively and offer expertise and reassurance that AI simply cannot deliver.
“AI is also not yet being utilised to research finance options - something only 15% of buyers are currently using it for, leaving a large opportunity for dealers to offer finance expertise and clearly walk customers through the various finance options available, many of which customers will have a limited understanding of and would rather speak to an expert - as opposed to a chatbot - to gain understanding.
“Dealers will need to support this transition through advanced data tools and regulatory guidance, ensuring that while AI might help a customer start their journey, a human expert - backed by the right training - is there to cross the finish line."
