John Sternal's Blog (503)

Generative AI and the Dealership: How GPT Tools Are Changing Expectations from the Lot to the Bay

The automotive dealership model is facing yet another modernization opportunity—this time driven by artificial intelligence, specifically generative AI and GPT-style technologies. These tools, which allow users to query complex data systems using natural language and automate time consuming repetitive tasks, are increasingly being explored across commercial vehicle operations for their potential to increase efficiency, simplify analysis, and improve…

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Added by John Sternal on June 19, 2025 at 2:39pm — No Comments

How AI Is Reshaping Dealer Strategies Amid Affordability Challenges

As economic uncertainty continues to weigh on consumers, vehicle affordability continues today as a driving issue in the auto retail sector. High interest rates, lingering inflation, and constrained supply chains have converged to create a complex marketplace—one where both consumers and dealers are navigating a delicate balancing act between price sensitivity and profit margins.

In response, dealers are looking to leverage AI and machine learning as a strategic tool to maintain…

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Added by John Sternal on June 11, 2025 at 11:00am — No Comments

Is Your Dealership Maximizing Limited Warranties As Part Of A Wealth-Building Strategy?

Today’s auto dealerships are constantly seeking innovative ways to differentiate themselves and enhance their profitability. One such opportunity lies in the strategic use of limited warranties, not just as a vehicle sales tool, but as a cornerstone of a sophisticated wealth-building program.

 

While the utilization of limited warranties has become commoditized, integrating these warranties into a comprehensive reinsurance or DOWC strategy can provide significant financial…

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Added by John Sternal on June 4, 2025 at 9:33am — No Comments

How Advanced TCO Data For EV Transitions Can Grow Local Dealership Business

The automotive dealership model is constantly facing change, especially in the types of vehicles retailers can service. In particular, as the commercial vehicle market shifts toward opportunities for electrification within their vehicle fleets, local dealerships are being called upon to do more than sell vehicles. They must become strategic partners in their customers’ sustainability journeys – for both passenger vehicles and that of fleet customers. This reimagination of business…

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Added by John Sternal on June 3, 2025 at 1:10pm — No Comments

Smarter Verification, Safer Transactions: A Path Forward for Auto Fraud Prevention

With today’s “always connected” digital economy, identity is currency. For the automotive industry—spanning rentals, dealerships, insurance providers, and financing institutions—that currency is increasingly being challenged. The numbers are staggering with U.S. auto lenders facing an estimated $9.2 billion in fraud loss exposure. ¹ This surge in identity-based fraud is not only draining revenue but also undermining trust and operational integrity across the industry.

At the heart of…

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Added by John Sternal on June 3, 2025 at 1:07pm — No Comments

Beyond Sales: How Machines Can Optimize Dealership Strategy

The automotive retail industry is experiencing a fundamental modernization. While much of the conversation has centered around electrification and digital retailing, another powerful force is quietly changing the way dealerships operate—intelligent machines. Often associated solely with sales or advertising automation, machines are increasingly being used to optimize back-end dealership strategies in areas like inventory allocation, pricing, merchandising, and aged inventory…

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Added by John Sternal on June 3, 2025 at 12:54pm — No Comments

From Margins to Mobility: Why Auto Dealers Must Rethink Fleet Service for the Connected and Electric Age

From Margins to Mobility: Why Auto Dealers Must Rethink Fleet Service for the Connected and Electric Age

 

U.S. auto retailers have had a longstanding relationship with local commercial and business fleet customers, especially in the servicing of vehicles in the fleet. Rapidly changing updates to connected vehicle data is offering an opportunity for retailers to further grow this business, but their technology proficiency to properly leverage this data poses…

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Added by John Sternal on May 16, 2025 at 2:00pm — No Comments

The REAL ID Deadline: Challenges Auto Dealers May Still Face Verifying Identities

The May 7, 2025, enforcement of the REAL ID Act marks a new moment for identity verification in the U.S.-and auto dealerships are squarely in the crosshairs. As the federal government now requires all Americans over 18 to present a REAL ID-compliant driver’s license or ID for domestic air travel and access to certain federal facilities, the auto industry must also deal with the ripple effects on its own processes for verifying customer…

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Added by John Sternal on May 15, 2025 at 11:22am — No Comments

Key Takeaways from the Q1 2025 Automotive Market Report

The first quarter of 2025 opened with a mix of optimism and uncertainty for the automotive industry. While March delivered a sharp 19% rebound in new vehicle sales—largely driven by consumers rushing to purchase ahead of tariff price adjustments—the earlier months of the quarter were marked by a slight decline. Used vehicle sales, on the other hand, showed steady resilience, increasing 10% quarter-over-quarter.

Beneath these headline figures, however, the market revealed deeper…

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Added by John Sternal on May 14, 2025 at 12:01pm — No Comments

LLMs, Agentic AI, and Vertical AI: How Machines Are Improving Dealer Retail Operations

LLMs, Agentic AI, and Vertical AI: How Machines Are Improving Dealer Retail Operations

As dealers face rising complexity in inventory management, pricing, and profitability, especially with the 25% tariff on imported vehicles, machine-driven technologies are stepping in as vital tools—not just to handle data, but to make better, faster business decisions.  

From fluctuating vehicle values and evolving consumer trends to aging inventory and regional market…

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Added by John Sternal on May 5, 2025 at 1:07pm — No Comments

The CFPB is on Life Support- But Compliance Shouldn’t Be

In recent weeks, the Trump administration has significantly reduced funding for federal financial regulators. The Consumer Financial Protection Bureau (CFPB) is struggling to operate, with its staff unable to access their headquarters, supervisory exams suspended, and enforcement cases being abandoned. The Federal Deposit Insurance Corporation (FDIC) fired 700 employees on the last day of February[1].  Even the Office of the Controller of the…

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Added by John Sternal on April 29, 2025 at 11:42am — No Comments

Do You Have the Right Wealth-Building Plan to Navigate Tariff-Driven Uncertainty?

Today’s current economic climate has forced auto dealers to buckle in for a wild, unpredictable ride with their car shoppers. Auto dealers face new, unprecedented challenges that demand a strategic approach to wealth-building and F&I portfolio management. The Presidential tariffs are expected to cause manufacturers to raise vehicle & parts prices, which will inevitably put more affordability pressure on car shoppers and consumers.

 

A new analysis by the Center for…

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Added by John Sternal on April 29, 2025 at 11:41am — No Comments

Lotlinx Q1 Quarterly Vincensus Report Reveals Market Volatility Amid Economic Uncertainty and Inventory Shifts

Data shows price pressures and aging carryover inventory increases, while Lotlinx customers maintain a competitive edge through strategic inventory management

 

DETROIT (April 16, 2025) — Lotlinx, the auto industry’s leading VIN-specific data company for dealership inventory management, announced today its Q1 2025 Quarterly Vincensus Report, the most comprehensive…

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Added by John Sternal on April 16, 2025 at 1:56pm — No Comments

New Survey Data From EVAI Show Fleet Managers Face Continued Challenges in Leveraging TCO Metrics With Auto Dealer Partners

Jackson, Wyo. – (April 1, 2025) EVAI, a pioneering company specializing in advanced data analytics and AI-driven solutions for fleet management, today announced results of its latest industry survey revealing significant insights into the use of total cost of ownership (TCO) metrics and the current state of electric vehicle (EV) adoption among vehicle fleet managers. The online survey, presented to more…

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Added by John Sternal on April 1, 2025 at 1:04pm — No Comments

Interactive EQ launches Auto IEQ - AI-based Talent Assessment Platform Custom-Built for Auto Industry Needs

Interactive EQ, an interactive talent assessment platform that combines AI and interactive videos to measure emotional quotient (EQ), launched its Auto IEQ product for dealers/retailers, service providers, and OEMs.

 

LOS ANGELES, Mar. 25, 2025 -- Interactive EQ launches Auto IEQ - AI-based Talent Assessment Platform Custom-Built for Auto Industry Needs.

 

Former Tekion leader solves for measuring intangible skills by…

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Added by John Sternal on March 25, 2025 at 2:04pm — No Comments

The Looming Threat of Deepfakes: A New Era of Auto & Financial Fraud

In recent years, while AI has empowered dealers and lenders to enhance their businesses, it has also provided fraudsters with sophisticated tools to perpetrate financial fraud.  

 

One of the most concerning developments is the use of generative AI techniques, including deepfakes, to create counterfeit documents. Deepfakes, short for "deep learning fakes," enable fraudsters to convincingly manipulate images and texts of key loan documents, making detection increasingly…

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Added by John Sternal on March 25, 2025 at 9:26am — No Comments

What’s Preventing More Auto Retailers From Additional Cyber Defense?

Sure, technology is rapidly advancing the automotive retail and lending industries, but this evolution has also brought about new challenges in the areas of cybersecurity. The ransomware event of the summer of 2024 made many headlines, and since then the entire industry is taking a closer look at digital security.

 

Even with this increased awareness, a recent online survey conducted in November 2024 has shed light on the alarming gaps in cybersecurity practices among auto…

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Added by John Sternal on March 25, 2025 at 9:25am — No Comments

Modernizing Inventory Management: How Machines Can Outperform Human Dealers

As the automotive dealership industry has long relied on human intuition and historical sales data to guide inventory management decisions, dealers continue to face a constant balancing act: having the right mix of vehicles to meet customer demand without overstocking models that might sit unsold for months.

Traditionally, dealers have relied on experience, gut instincts, and past sales performance to determine which vehicles to order, how to price them, and when to move them…

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Added by John Sternal on March 18, 2025 at 12:58pm — No Comments

What’s Still Needed To Truly Maximize Digital Deal Jackets

Today's leading auto retailers widely recognize the significance of digital deal jackets in their operations. These comprehensive electronic records have transformed legacy dealership processes, covering all aspects of vehicle sales. However, just utilizing a digital deal jacket isn’t enough, especially since only 20% of dealers said they utilize a digital copy of a person’s driver’s license – even with a digital deal jacket.

 

The Federal Trade Commission's Safeguards Rule has…

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Added by John Sternal on March 10, 2025 at 1:59pm — No Comments

Why Fraud Is No Longer Preventing Dealers & Lenders Access To Private Seller Inventory

The auto industry has long been plagued by the persistent issue of fraud, especially with used vehicle transactions. For years, auto dealers and their lender partners have been hesitant to acquire used inventory directly from private sellers in the private marketplace. This reluctance stemmed from the lack of access to robust identity verification and fraud prevention tools, which left dealers and lenders vulnerable and exposed to fraudulent transactions.

 

Private…

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Added by John Sternal on March 10, 2025 at 11:01am — No Comments

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