AI and virtual showrooms: The digital evolution of car sales
AI and virtual showrooms: The digital evolution of car sales
Car buyers today want more than a test drive and a handshake. They’re looking for convenience, transparency, and a shopping experience that feels tailored to them. Thanks to rapid advances in digital technology, they’re getting exactly that from some companies.
The COVID-19 pandemic changed how people shop, accelerating a shift in how they buy vehicles. Online marketplaces, virtual showrooms, and AI tools now sit at the heart of how people buy cars. They’ve changed what both buyers and dealers expect. Allied Market Research reports that online car buying has taken off in recent years and is expected to grow significantly, pushing dealerships to adopt a more digital approach.
Today’s shoppers can take 3D tours, chat with AI assistants, and explore vehicles entirely online. With virtual reality and machine learning, the whole process starts to feel less like a dealership visit and more like ordering a phone or planning a vacation online. To help drivers make sense of these changes, CheapInsurance.com has pulled together the latest trends and innovations shaping the future of car shopping.
The rise of online car marketplaces
Digital car sales platforms have gone from niche to mainstream in just a few years. What was once an option for tech-savvy early adopters is now a preferred method for millions of buyers worldwide. The numbers tell the story: The global online car-buying market is projected to reach over $722 billion by 2030.
One of the biggest success stories in this space is Carvana. Known for its signature car vending machines and no-haggle buying process, the company sold its two millionth vehicle in Q3 2024. Carvana saw a 33% increase in quarterly sales compared to the previous year, proof that more shoppers are ditching the dealership in favor of digital.
The appeal is clear. Many platforms now promise buyers they can purchase a vehicle in as few as three clicks, as one customer described to Halifax CityNews. Buyers can browse, compare, finance, and even schedule delivery from the comfort of home. That level of speed and control is exactly what today’s shoppers are looking for
So, how do these platforms work? According to KXAN Austin, companies like Carvana source vehicles through trade-ins, auctions, and dealer partnerships. Listings typically include 360-degree views, complete vehicle histories, and upfront pricing. Once a buyer chooses a car, they can apply for financing, sign paperwork online, and arrange delivery without ever stepping into a showroom.
Virtual showrooms and metaverse experiences
Online car shopping gives people time to think, space to compare, and the ability to avoid high-pressure sales tactics. For a growing number of drivers, that’s a game-changer.
Forget spending hours at the dealership and haggling over prices. Virtual showrooms and metaverse experiences are transforming the process. Automakers like Fiat and Chevrolet are bringing this new approach to life with digital experiences that meet shoppers where they are.
Fiat’s groundbreaking Metaverse Store
Metaverse experiences use immersive digital environments, often accessed through a virtual reality (VR) device, to let shoppers explore vehicles in lifelike 3D settings. In December 2022, Fiat launched the world’s first metaverse-powered showroom. Debuting in Italy, this new concept reimagines how people shop for cars by combining real-time interaction with immersive exploration. Unlike other virtual reality spaces, Fiat’s store doesn’t require a headset. All you need is a browser.
Built with help from Touchcast and Microsoft, the platform lets users customize cars, take virtual tours, and make purchases. A key part of the experience is a “Fiat Product Genius”—a live human expert, aided by AI, that is available to answer questions and guide the process in real time. Customers using the Fiat Metaverse Store reportedly make decisions faster than those in traditional channels. Overall, the average decision-making timeline dropped from 3 months to 1.5 to 2 months.
Chevrolet’s virtual dealership experience
Chevy’s getting into virtual showrooms, too. With Chevy MyWay, shoppers can book live one-on-one video tours with product specialists who walk them through features, answer questions, and show off models in real time. It works across time zones so people can browse on their schedule with no sales pressure or dealership visits.
This mirrors the earlier success of Cadillac Live, which started in Canada and later expanded into the U.S. General Motors also launched a broader GM Live strategy. Still, they recently began scaling it back to refine its focus.
While the GM Live rollout may evolve, the idea behind it remains strong: Give buyers more power, comfort, and clarity during the research phase. Whether it’s Chevy, Cadillac, or Fiat, brands are proving that car shopping gets much easier when the showroom comes to you.
AI integration in car sales and dealership operations
Artificial intelligence is changing how we shop for cars and how dealerships operate behind the scenes. From customer support to marketing, AI is helping dealers work smarter and faster while giving buyers a smoother, more personalized experience.
AI-powered customer engagement
Some brands have gone all-in on AI. Fiat and Kia, for example, are using ChatGPT-powered assistants to answer in-depth questions about performance, features, and financing. These generative AI tools can explain specs, compare models, and even walk users through the next steps without involving a human unless needed.
Many dealerships now offer 24/7 chatbot support, which handles everything from test drive scheduling to lead qualification. As explained by DealerPromoter, these bots can collect contact info, answer basic questions, and pass hot leads to sales teams. Some even have voice AI assistants that follow up with prospects and confirm appointments.
Dealers are noticing the benefits. According to STELLA Automotive AI, 68% of dealerships say AI has already positively impacted their day-to-day operations, saving time and improving customer service.
AI for personalized recommendations and marketing
AI is also great at helping people find the right car. Platforms like Impel.ai track browsing habits, past chats, and budget info to suggest cars that actually fit what someone’s looking for, not just what’s sitting on the lot.
These smart systems also handle follow-ups, sending well-timed texts, emails, or voice messages that keep shoppers in the loop without bombarding them. It’s a subtle way for dealerships to stay on a customer’s radar while giving their staff more time to focus on in-person service.
Even digital advertising is getting a boost. AI can tailor marketing messages based on someone’s interests, location, and online activity, so shoppers are more likely to see offers that actually matter to them. For dealerships, that means less guesswork, and for buyers, it means a smoother, more relevant experience from start to finish.
Challenges and opportunities for traditional dealerships
As online platforms continue to grow, traditional dealerships face some tough questions. Foot traffic is down, competition is up, and buyers now expect a digital experience before they ever set foot in a showroom.
Declining foot traffic and shifting expectations
Fewer people visit dealerships in person, and it’s turning out that it’s not just a pandemic blip. Many dealers feel pressured because more customers prefer online shopping and research. People want to compare prices, explore features, and get pre-approved from their couch, not a cubicle.
This new behavior forces dealerships to rethink their role. The focus is no longer just on closing sales. They now also need to add value throughout the digital journey.
Staying competitive with service and tech
One area where traditional dealerships still hold an edge is service. But even that’s being tested. Independent shops and mobile repair services are becoming strong alternatives. To stay ahead, dealerships must bring the same tech-forward mindset to their service departments.
That means using AI to personalize service reminders, streamline bookings, and suggest maintenance based on driving data. Tools like these help turn service into a smarter, more customer-friendly experience that builds loyalty over time.
The hybrid model: Blending digital and in-person
For many dealerships, a hybrid model that combines digital tools with real-world support is the best path forward. Shoppers can explore vehicles online, ask questions via chatbot, and schedule test drives from their phones but still visit the dealership when they’re ready for a hands-on look or final paperwork.
This mix of tech and touch is precisely what modern buyers want. Many shoppers prefer a digital-first approach but still value human connection when it matters. Dealerships that embrace this blend can stay relevant, competitive, and customer-focused, online and offline.
Future car-buying trends and innovations
Digital car sales are gaining momentum, and they’re not hitting the brakes anytime soon. Here’s a look at the technologies driving the next wave of digital car buying.
Hyper-personalized shopping with AI
Artificial intelligence is poised to do much more than just answer questions or recommend cars. In the near future, AI could anticipate a shopper’s needs, customize offers, and guide them through a car-buying journey that feels tailored from start to finish. According to Impel, AI is expected to play a central role in building personalized experiences that mirror the best service, only faster, more innovative, and more scalable.
Imagine AI assistants that already know your financing preferences, trade-in value, driving habits, and favorite color before you even log in. That level of personalization is becoming not just possible, but expected.
Augmented reality test drives
Another major shift is augmented reality (AR). It lets customers “test drive” a car right from their driveway, checking out interiors, trim levels, and features using just a phone or tablet. Market Research Future reports that AR is helping shoppers get a feel for the vehicle without setting foot in a dealership.
Navigating the new car buying landscape
How people buy cars has changed, and it’s not returning to the old ways. AI-powered chatbots, virtual showrooms, and online platforms are reshaping the experience from top to bottom. Shoppers now expect transparency, convenience, and personalization as standard. Dealerships, in turn, are rethinking how they engage and retain customers in this fast-moving digital world. With new tools constantly entering the market, the bar for what counts as a “good” experience keeps rising.
For both buyers and sellers, adaptability is everything. Those who embrace digital tools—whether AI for more innovative marketing or AR for virtual test drives—are more likely to thrive. Those who don’t may fall behind, and dealerships investing in tech already see improved efficiency and stronger customer connections.
This isn’t just a new chapter in car sales. It’s a new playbook. And for those ready to use it, the road ahead looks promising.
This story was produced by CheapInsurance.com and reviewed and distributed by Stacker.
