How Car Dealerships Are Using AI to Upsell Service

Well before the latest AI advances, dealerships used their service departments to drive sales, Crossen says. “Besides upselling customers on repairs and maintenance, dealers know that if your old car is having problems, it’s a good time to try and sell you a new one,” he says.

Now, AI voice agents remove the limits on how many sales pitches a human can make and answer in a single day, how many hours that person can work, and how persistently they try to sell. The result is that any interaction with a car dealer these days will likely result in more attempts to persuade you to buy something you don’t need.

• On the Pam demonstration calls that Consumer Reports listened to, Pam was polite but always offered alternatives whenever a potential customer gave a reason for declining a service appointment.

• Many AI platforms advertise features that automatically call people whose vehicles have an open safety recall to encourage them to come into the dealership to get it fixed. So far so good. But some software companies say that their tool can be used to “convert” a recall repair visit into additional service revenue or a new car sale. For example, AutoAlert advertises that it “can identify recall customers who are also in positive equity, allowing your sales team to connect with them while they’re in the store—turning a safety event into a sales event.”

• Like many AI startups, DealerIQ offers an AI assistant that’s integrated with a dealer’s computer systems. Called dAIve, it can automatically text or call customers based on the information that a dealer shares with it. “If you’re in service, dAIve will ask you if you’ve thought about trading in your vehicle,” says Curtis Lacy, DealerIQ founder and CEO.

To avoid those upsells, Crossen says to only pay for the scheduled service recommendations laid out in your owner’s manual. (If it’s not in your glove box, it’s online.) “Every manufacturer-recommended preventive service is listed in the owner’s manual, along with the mileage or time you should have it done,” he says. In most cases, these procedures are all you need to keep your car healthy.

Sometimes, though, a dealership may recommend additional services outside of what the manufacturer calls for. This is when you need to ask questions. “There might be a valid reason, and your car might actually benefit from it, but find out why,” Crossen says. “Otherwise, you might be wasting your money."

If the justification you hear from the service technician, voice agent, or chatbot sounds suspicious, simply say that you want to stick to the recommended service schedule. If the suggested repairs are expensive but sound reasonable, it can be worth taking your car to another repair shop for a second opinion.

Especially if your car is out of warranty, it’s worth finding a trusted independent mechanic who specializes in the make (Ford, Hyundai) or type (hybrid, EV, German) of vehicle that you drive. According to Consumer Reports’ repair shop survey, independent repair shops received excellent scores for honesty, quality of work, time to complete the repair, and communication.

If you’ve ever spent your entire lunch break trying to make an appointment for a simple oil change or tire rotation, a dealership that uses an AI voice agent can save you a lot of time. “It makes the dealership open 24/7,” says Lacy, the DealerIQ founder.

Consumer Reports called several AI-equipped dealerships outside working hours. Instead of getting a message to call back later, we were able to speak with a voice agent who offered upcoming appointment times. Another welcome convenience: Some agents are capable of understanding multiple languages that dealership staff might not otherwise speak.

AI-powered transcription and data sharing mean that no matter who answers the phone when you call, they have access to all the prior conversations you’ve had with their coworkers.

“When a human handoff happens, the customer does not have to repeat the same conversation from the beginning,” says Sanjay Varnwal, CEO and co-founder of Spyne, an AI platform that’s used by over 2,000 dealerships in the U.S.

One of the most remarkable things about the Pam demonstration Consumer Reports observed was that the prospective customers who answered the phone didn’t seem to mind talking to a bot. Even though Pam sounded a little stilted, interrupted callers to rattle off a 17-digit VIN, and even mispronounced “Nissan,” customers sounded like they were comfortable with the interaction.

While some voice agents are obviously AI-powered, others sound especially human. They can be customized with different names, tones, and even regional accents. And with ongoing advancements in AI, they are likely to rapidly improve.

Ultimately, though, if you aren’t getting what you need from a voice agent, ask to speak to a human. Most systems are designed to let you do this. “The customer should not have to argue with the system to reach a person,” Varnwal says.

Whether you’re dealing with a human or AI, manage your expectations, Crossen says. What might sound like an upsell could be a necessary repair, or vice versa. The key is to ask questions about what’s wrong and get a second opinion on big repairs. “Unexpected things go wrong with cars, and that’s why having a relationship with a trusted human mechanic is so important,” Crossen says.

Consumer Reports has integrated its AI-powered AskCR tool into the Car Maintenance & Repair landing page at CR.org. It can help you navigate Consumer Reports’ advice and ratings by answering questions such as when to replace tires, the best tires for your car, the best replacement car battery for your car, how to perform basic car care, and much more.