AI Is Coming for Car Salesmen 95
An anonymous reader quotes a report from The Drive: An auto dealer software company is pitching AI-powered kiosks designed to replace car salesmen on showroom floors. Automotive News says the industry is "skeptical." But be honest -- would you really rather deal with the average car lot shark than a computer?
Epikar, a South Korean company that cooks up digital management solutions for car dealers, has named its new AI invention the Pikar Genie. The idea is that customers can talk to this device, ask it product questions, and basically do everything you'd do with a car salesman except for actually closing the deal and signing paperwork. Renault, BMW, and Volvo are already using some Epikar products at South Korean dealerships, but this new customer-facing AI product is still in its infancy.
AN reported that "Renault assigns three salespeople to its Seoul showroom enhanced with Epikar automation compared with six for other Renault showrooms in South Korea," according to Epikar CEO Bosuk Han. The company's now looking to expand into America and is apparently already testing its products at at least one dealership stateside. Car-dealer consultant Fleming Ford (Director of Strategic Growth at NCM Associates) said U.S. dealerships "aren't ready for fully automated showrooms."
"The showroom isn't just where you buy a car," Automotive News quoted him saying. "It's where you decide who to trust to help you to choose the right car."
Epikar, a South Korean company that cooks up digital management solutions for car dealers, has named its new AI invention the Pikar Genie. The idea is that customers can talk to this device, ask it product questions, and basically do everything you'd do with a car salesman except for actually closing the deal and signing paperwork. Renault, BMW, and Volvo are already using some Epikar products at South Korean dealerships, but this new customer-facing AI product is still in its infancy.
AN reported that "Renault assigns three salespeople to its Seoul showroom enhanced with Epikar automation compared with six for other Renault showrooms in South Korea," according to Epikar CEO Bosuk Han. The company's now looking to expand into America and is apparently already testing its products at at least one dealership stateside. Car-dealer consultant Fleming Ford (Director of Strategic Growth at NCM Associates) said U.S. dealerships "aren't ready for fully automated showrooms."
"The showroom isn't just where you buy a car," Automotive News quoted him saying. "It's where you decide who to trust to help you to choose the right car."
Interesting cut off point (Score:4, Informative)
Re:Interesting cut off point (Score:5, Funny)
On the flip side, a hallucinating AI will probably still be more honest than your average car salesman.
Re: Interesting cut off point (Score:1)
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Plot twist: The 94 Honda Civic is the listing I was trying to see anyway.
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Dealer Kiosk (Score:2)
If Tesla can show its cars at the mall, not sell them there,then other car manufacturers will start finding a way to bypass the dealerships.
It's already possible to drop ship cars direct to customers since this is done on a regular basis if you buy a used car from an out of state dealership.
Then again, the dealerships cold call most every vehicle a loaner with 50 miles on it and sell it as used to get around the car dealership's exclusive new car territory.
https://www.reuters.com/busine... [reuters.com]
Exclusive: China a
Neither (Score:5, Insightful)
"would you really rather deal with the average car lot shark than a computer". No, I'd rather by a car like I buy everything else, without any interaction with a salesman human or synthetic.
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Right, and with fair pricing and disclosure. What is interesting here is that the solution to a terrible, exploitive buying experience is to make the seller even more sociopathic.
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Re: Neither (Score:2)
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Re: Neither (Score:2)
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Most times customers and potential customer lie and tell half truths just as much as the sales people.
The best deal I ever got on a used car at a dealership was achieved using strategies that are claimed not to work.
I arrived towards closing time at the dealership and, having satisfied myself that the car was suitable, I just sat there saying the price was too much. They kept coming down in price and I got a great deal on the car, when everyone wanted to go home.
I didn't lie.
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I arrived towards closing time
This is indeed a great strategy. I hate dealing with salesmen!
Re: Neither (Score:5, Interesting)
This (Score:2)
Far better interest rates on loans/credit cards, they don't nickel and dime you over everything, and services that are actually useful instead of stupid promotions designed to goose this quarters' bonus. They'll give you basically the best rates you can find on mortgages, too.
One downside is slower clearing, but I don't use them as my primary account, so I don't care about this.
They also
Re: Neither (Score:2)
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this . TrueCar WAS a good deal pre cca 2012. and somewhat ok until maybe 2015.
After that it's just a crappy lead generation service for dealers with dealer provided pricing.
Idk what the Costco prices are like nowadays., when I last checked about 15 years ago they were "ok". maybe $1000 or 2 higher than Edmunds price targets (which also still more robust back then) but possibly worth it as a fee for low hassle.
I think the solution is just to be rich so you don't care... or don't care much.. but that's
Re: Neither (Score:2)
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The solution is like airline pricing - the price should be honored.
Not the "Oh, we can't sell you the car in the ad because it was sold, but here's a similar model that's a bit nicer (more expensive)?" Or have all the "extra upcharge" and "upsell". I just want the car you advertised the price you advertised it.
Some places are starting to have laws demanding all prices shown are inclusive drive
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Fond memories of buying a Saturn.
Walked in, picked up the pricing card.
Select model, select option package, price for that combination was listed on the card.
First and only time the salesman didn't lie to me.
That's just stupid (Score:3, Insightful)
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Re: That's just stupid (Score:2)
"Parasocial" chat-bots (Score:1)
Chat-bots that pretend to be your buddy have been around for awhile now, sometimes with tragic results. [apnews.com]
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Car salesmen work by making you think they're you buddy.
I'd rather have a "buddy" instead of a kiosk that immediately looks up detailed financial information about me, my social media accounts (well, just this one, which is presumably mostly private), public salary records, previous car purchases, credit records, etc. and then bases its pricing and upsell on that information.
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a kiosk that immediately looks up detailed financial information about me
Unless you have been consenting to everything left and right and now there is a lot of data on your profile, how would it do that without you agreeing to a credit check?
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how would it do that without you agreeing to a credit check
"To help us give you the best price possible, please enter some quick information about yourself...and please agree to the following user agreement...which is 100 pages long..."
They can find lots of info on your credit worthiness without doing a full credit check with a soc., but I wouldn't be surprised if most customers will happily hand over their social security numbers without a second thought.
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I read that as "parasitical" relationship. Eh, tomayto/tomahto.
Training in sleaze (Score:2)
That's all we need -- AI using training sets of sleazy used car salespeople.
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Those will be emphasized, though. This is what capitalism is. Everything is an opportunity for exploitation.
hahahhahahahha (Score:5, Funny)
"The showroom isn't just where you buy a car," Automotive News quoted him saying. "It's where you decide who to trust to help you to choose the right car."
Hajajhahaha they think we trust them
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The only thing that I "trust" a car salesman to do is attempt to get me to sign up for useless add-ons like VIN etching and extended warranties that are basically pure profit for the dealership.
You can't even trust them to give you the best interest rate on your car loan if you need one, they farm that out to the banks that give them the best kickbacks.
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I wouldn't say they're all useless, but they charge exorbitant prices which makes them low value. ... but they charge 2x what it costs at the shop two doors down from the dealer.
like PPF is good stuff
I guess one thing where it can add value to the consumer is that those get rolled into the car loan so a better rate than credit card.
and same for mudflaps, roof racks, floor mats, cargo organizers, car fridges etc
but instead of just charging a little more for it they play the predatory games they play...
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When I bought a car last I had the option of having it shipped to a local dealer to check out, or I could drive 40 miles south and look at it. I picked the latter, not because of price or not caring about convenience, but because I didn't want to buy the car from the same dealer that'd do the maintenace.
Because I knew ahead of time whatever dealership sold it to me would rip me off. And I would never want to go there again.
And guess what, they lied about everything. They claimed the price wasn't valid becau
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I think the answer comes from who runs for officel. It requires someone extroverted, good at speaking, able to fundraise, and who has free time to engage in campaigning. People that fit that bill are salespeople, lawyers and career politicians. So they are over-represented. And they bring with them a certain flexible relationship with the truth. State-level politicians not infrequently graduate to the federal/national level.
I found this link about the demographics
Different dealers competing for your business? (Score:5, Interesting)
Today I can ask a handful of dealers 'what's the best price you can give me for that car' and have them bid against each other. Different dealers' AIs will be talking to each other to ensure you pay the maximum.
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In the rental market, there are organizations that manage landlord IT needs. They discovered they have access to material nonpublic information on pricing and demand, and so could "suggest" rents based on that, acting as a "super landlord". A key player is RealPage which recently settled with the DOJ about that collusion on favorable terms.
In the car dealer market, they have such organizations too [google.com], so having a "super dealer" that helps dealers price vehicles is almost certainly colluding as well.
AI is perfect for this! (Score:4, Funny)
It can hallucinate all it wants and nobody will be able to tell the difference.
Since AI is known to just "invent" facts, (Score:4, Insightful)
...doesn't this open up the ultimate in bait and switch excuses? Oh sorry, that car doesn't actually exist. The AI just made it up. We'll see if we can get our provider to fix that but for now can we show you THIS car that's only $4000 more expensive?
How about? (Score:5, Insightful)
How about I just log on to Ford or whoever's website and just order what I want? That sounds best to me.
Re:How about? (Score:4)
I bought a used 2020 XC90 from CarMax last week. I did everything online from shipping it from Texas to Minnesota to financing the extended warranty. I walked in the door, gave them a cashier's check, and drove away within 10 minutes.
That's how it should be.
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I had VERY SPECIFIC requirements and I wanted the extended warranty. I would have paid 2x at a dealer. I know what I was doing.
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I had VERY SPECIFIC requirements and I wanted the extended warranty. I would have paid 2x at a dealer. I know what I was doing.
The cope is strong in this one.
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I had VERY SPECIFIC requirements and I wanted the extended warranty. I would have paid 2x at a dealer. I know what I was doing.
Huh. tend to agree w/ the other guys that CarMax's sales prices are on the high side. You're paying 1 or 2 k for convenience.
But i hadn't looked into the MaxCare thing before and am surprised to find out that, unlike most extended warranties, people have good things to say about them!
And it's interesting because one thing i hadn't generally considered is that it COULD allow one to buy a used BMW or modern truck and not live in fear of a 5 figure repair when the engine, transmission, or "the dash" have
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You pretty much can.
See for example
https://shop.ford.com/configur... [ford.com]
Though you'll pay full MSRP, which will be the case for everyone buying straight from the manufacturer, wherever that is permitted.
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which will be the case for everyone buying straight from the manufacturer, wherever that is permitted.
Only a few manufacturers can, and some states have laws saying you must sell through a dealership.
As for buying through the manufacturer's website, it depends on what you are doing. You can configure a car and see if there is one in stock by you, in which case you can haggle with the dealership over price. If you order a custom build from the manufacturer, they will probably charge you full price, and you'll still have to pick it up from a dealership and have all those fees tacked on.
Deals from the d
This (Score:1)
Car dealer web sites have had configure-and-buy-it-online-except-for-the-final-signature for well over 20 years now, if you were willing to pay the fixed price the dealer offered.
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It's astounding to me that a car is the 2nd most expensive purchase you'll make next to a house, and you're required to take from "dealer stock" instead of ordering exactly what you want.
The whole dealership model should have gone away decades ago.
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Profit motives and Sales (Score:5, Insightful)
The car dealer isn't looking to get you into the right car for you, they're looking to get you into the right for them. And they're a business, you expect that. The traditional issue is that car salesmen have zero shame about using every social engineering trick in the book to pressure you into spending more than you care to.
An AI kiosk won't be able to do that to anywhere near the same degree - the dealer will save on commissions but lose on sales.
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An AI kiosk won't be able to do that to anywhere near the same degree
What makes you say that? Especially right after all these tech companies lost court cases about making social media as addictive as possible. It might not be able to manipulate your social empathy on the spot, but the overall system, where AI kiosk is just a link in a long pressure sales chain, will absolutely be better at manipulating you.
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An AI kiosk won't be able to do that to anywhere near the same degree
What makes you say that? Especially right after all these tech companies lost court cases about making social media as addictive as possible. It might not be able to manipulate your social empathy on the spot, but the overall system, where AI kiosk is just a link in a long pressure sales chain, will absolutely be better at manipulating you.
agree. I think it'll probably try to dox you in real time and tell you how much more your daughter would love you if you bought the leather seats and that she'd never talk to you again if you cheaped out and embarrassed her by buying the cloth seats, which would absolutely ruin her life!
also, let's talk about how disappointed your mother, Sarah, will be when you pick her up for brunch in a Toyota instead of the Lexus. What will her neighbors think?! is THIS how you repay her for a lifetime of love ?!
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how will AI do an 4 square worksheet on paper to c (Score:2)
how will AI do an 4 square worksheet on paper to confuse the buyer into paying more?
AI will never out perform a human car saleman (Score:2)
Hunger and greed cannot be underestimated. A car salesman will skirt and break the law if that is what it takes to get his commission.
An AI will lie to your face because it doesn't know any better. A car salesman will tell you one lie while agreeing to tell your wife a different lie.
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A car salesman will tell you one lie while agreeing to tell your wife a different lie.
Agreeing with who? Is there some sort of cabal of used car salesmen where they have to agree amongst themselves which lies to tell who? I figured it was all kind of spontaneous...
"You can fit so many dystopias in this bad boy!" (Score:2)
Useless profession these days anyway (Score:2)
Perhaps they had a role to play in the 80s. But now? Everyone just finds a car they want either online or by looking at other cars on the roads/driveways. Then we go online to use all the website configurators to get the right spec.
It's actually more efficient and peaceful than speaking to a sales rep who'd try to aggressively sell you stuff you don't need.
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only a certain type of person is like that....
I think still for many people it's more like buying furniture or clothes. Like it's about how it looks and feels...
"I didn't like the seats in A" "B felt unsafe" "C has the no hands tailgate!"
and tbh for the large majority of people that and reliability really are more important than 0-60 ... variables valve timing... etc.
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Last time I bought a car, I just checked a few different dealers for the specific car I wanted and then went and test drove the one that I wanted. If I liked how it "felt", then I was happy to buy the car for the advertised Internet price (which you print out and bring with).
You can't just show up to a dealer and wander around aimlessly and expect an enjoyable experience.
Pikar Genie?! (Score:1)
Replace aggravating shit with aggravating shit? (Score:2)
Perfect! We can automate aggravating customers for no reason. The future is amazing.
We don't need an AI kiosk (Score:2)
All we need is a product configurator and a buy button, kinda like Tesla
Wow! (Score:2)
Does that mean we'll finally will see 'car-salesmen' who actually have read the flyer and not spew nonsense they pull out of their ass?
aina gonna fix it (Score:2)
That aina gonna fix the fact that cars have gotten waaaaaaaaayyyyyyyyyyyyy too expensive.
skip the car dealership (Score:2)
Fooling a Corporate Oracle (Score:2)
These kiosks will be doing research on YOU to determine the maximum price you are willing to pay. Once they have your SS# and DL# they'll be scouring private databases to see how gullible you are.
This is very bad if you are of the type who likes to negotiate.
So the next skill you'll need is how to keep your weak links in your personality out of private databases, among other non-public information that they can use against you.
This is the art of "Fooling a Corporate Oracle"
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This is the art of "Fooling a Corporate Oracle"
I see what you did there.
Not just car salesmen (Score:2)
This works until... (Score:2)
... until AI becomes sentient, then demands commissions and interest on all those sales its non-sentient iterations made. ;-)
The Jungle (Score:2)
I don't like dealers (Score:2)
1. It's a monopoly backed by legislation, they're the only ones who can sell new cars
2. Salesmen almost always dishonest, trained to deceive
3. Their unethical behavior almost always go unpunished
4. Their backing so strong, virtually nobody can overturn their protection
seems feasible (Score:2)
say "Let me go ask my manager about that..."
}
Instead, what is really needed (Score:2)
is a direct to the buyer program, where car companies can sell their products directly to the buyers, cutting out the middlemen and their fees.
Test drive? (Score:2)
This thing is going to go with you on your test drive?
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And Some I Like (Score:2)
Had this one fellow at the Subaru dealer in Fredericksburg, Va. He would do anything to make me happy. Found exactly what I was looking for, got me great prices, bought 2 WRX's off him. One of the few downsides to leaving the Fredericksburg area (always hated the weather, now hate the politics too), was losing him as my salesman since I feel the "need for speed" coming on in the form of yet another WRX.
They're not going to capture that sort of relationship with AI. They just aren't.