Top Trends Shaping the Future of Dealerships & Technology

The automotive industry is no stranger to change, and as we roll into 2025, it’s clear that dealerships need to stay ahead of a rapidly evolving landscape. Here are the top trends we’re seeing — from market shifts and economic factors to the latest dealership tech — and why they should matter to you.

INDUSTRY TRENDS

The Electric Slide vs. The Hybrid Ride
Despite the hype, electric vehicle (EV) sales are taking longer than expected to fully charge up. Key issues like charging infrastructure, driving range, and consumer habits are keeping EV adoption from accelerating as fast as predicted. While some EV fans are still clinging to the convenience of a quick gas stop over a lengthy charge, hybrids are picking up the slack. Bottom line, these cars are making a smoother, more practical entry point for eco-curious buyers who want some reassurance before going all-in on electric

Our Take: Hybrids are perfect for the eco-conscious pragmatist. Use this insight to engage customers who’ve been eyeing electric vehicles but might appreciate a balanced alternative.

Incentives Are Returning
Even with some resistance from consumers, new car prices have stayed pretty high. But after a year of inflation stress, automakers are finally relenting, rolling out fresh incentives to keep sales attractive. Combined with recent Federal rate cuts, this could make new car prices a lot more appealing for potential buyers.

Our Take: Stay ahead of the game by updating your digital retail platform the moment these incentives drop. Space Auto’s AI-powered tools can even help suggest these deals in your communication based on individual buyer data, so you’re not just throwing spaghetti at the wall.

Watching for Election Effects
The political landscape always has major implications for the auto industry. We’re keeping an eye on potential policy changes ahead from the new administration, from EV mandates and tax credits to manufacturing adjustments and trade tariffs. Not to mention ongoing union negotiations that could shake up production.

Our Take: Stay informed and ready to adapt. This isn’t just headline reading — it’s strategic business planning.

DEALERSHIP TECHNOLOGY TRENDS

AI Is Even More Essential
If you’re not using AI, you’re already trailing behind. From analyzing rich buyer data to crafting hyper-personalized marketing, AI is the not-so-secret sauce that will keep you competitive. It enables efficient, scalable communication tailored to each customer’s needs—and it’s only getting smarter.

Our Take: Embrace AI to amplify your dealership’s personality. Don’t let the tech feel robotic; blend smart automation with your unique dealership style to stand out. Space Auto makes it easy to leverage AI while keeping things human and authentic.

The Consumer Is Still Firmly in the Virtual Driver Seat — But They Want a Dealership Safety Blanket
Consumers have made it clear: the car buying journey starts online. They want all the details upfront, from car specs to financing options, before they even set foot in a dealership. Yet, most shoppers still prefer to close the deal in person, where they can take that final test drive and have a face-to-face interaction.

Our Take: An omnichannel approach—combining robust digital retailing with the in-person experience—is key. Meet your customers where they are with AI-assisted communication tools that offer their ideal online/in-person mix. Space Auto helps you fine-tune this balance and make each stage of the journey seamless.

Better Utilization of Customer Data
Dealerships are sitting on a goldmine of consumer data, from website interactions to financing inquiries. The best part? Customers are okay with sharing it if it enhances their experience. Use this information to solve their pain points in real time, whether it’s answering questions about a specific model or providing detailed financing info.

Our Take: When customers give you more information, it’s an invitation to personalize the experience. Use data smartly to guide them through the buying process in a way that feels tailored and intuitive. With Space Auto, your digital tools can turn enhanced leads into satisfied buyers, who will feel like you truly understand what they want.

Change is happening fast, but that doesn’t mean you can’t keep up. By embracing new trends and technology, your dealership can not only adapt but thrive. And, hey, if you’re looking for a partner to help navigate these changes, you know where to find us.