Boost margins by blending AI with human expertise — Tim Cox | CarNow

Car dealers are entering a more competitive, margin-driven market in 2026, where relying on technology alone is not enough. On today’s episode of Driving Solutions, CarNow Co-founder Tim Cox explains how dealers can cut through tech noise, protect margins and capture missed sales and service opportunities.

Industry forecasts suggest that 2026 will be stable but competitive, making execution more important than expansion. Success and profitability will hinge on disciplined processes, performance-focused strategies and the integration of AI with human engagement.

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Each year, the NADA Show draws a crowded field of vendors showcasing the latest emerging technologies. While many of these advancements are impressive, dealers risk signing expensive, long-term contracts that may fail to deliver measurable results. Cox emphasizes that technology should be evaluated based on whether it moves key metrics, rather than by novelty or buzz.

CarNow’s approach focuses on analyzing dealer source reports to identify missed opportunities and optimize existing processes. The company prioritizes real-world results over flashy demonstrations, helping dealers implement solutions that truly drive conversions and profitability.

AI-powered tools are critical for efficiency, but should not replace employees. Some of the most effective applications include answering customer questions, routing leads, and handling repetitive tasks. When used correctly, AI frees employees to focus on higher-value tasks, ultimately improving customer experience and revenue outcomes.

“Great operators continue to move the bar no matter what’s happening… It’s because they believe in their process, do it the right way every time, and take care of the customer—using tech alongside their people.”

Despite advances in AI, customers continue to value human interaction. A structured handoff from AI to human staff is essential to close deals and build trust. Fully automated systems fall short without human oversight, accountability, and follow-through. The most successful deployments integrate AI into existing people and process frameworks.

Fixed operations remain a significant growth lever for dealerships, particularly as the average age of vehicles on U.S. roads nears 13 years. Many dealerships are using AI-powered tools to handle high service volumes and improve efficiency. CarNow clients have seen dramatic results: one auto group experienced an average 106% increase in online service scheduling across 25 stores, while one store achieved a 300% increase.

Even simple adjustments can drive measurable impact. Adding QR codes to oil change stickers or website CTAs allows customers to schedule service quickly, reducing friction and improving retention.

CarNow combines AI tools with a live BDC operating 24/7 to support both sales and service departments. This hybrid approach ensures that customers move seamlessly from inquiry to appointment, while staff focus on higher-value interactions.

The company also offers ongoing, in-store support rather than remote-only onboarding. Training focuses on maximizing existing tools and refining small process adjustments to significantly improve lead-to-close conversion rates.

CarNow will be exhibiting at the 2026 NADA Show, unveiling its largest product lineup to date. Dealers can visit the company in the West Hall at Booth #4543W to see its performance-focused solutions in action.