Canadian auto dealerships are rapidly adopting digital retailing and AI-driven solutions to streamline operations and boost sales. A recent industry survey found that over 60% of Canadian dealers expect AI to have a major impact on their business, and many are investing in technology to modernize sales and service processes (What does the future hold for automotive retail? Part 1 - Canadian Auto Dealer). Vendors and startups alike have launched online sales platforms, integrated dealer software and AI-powered finance tools aimed at improving efficiency and customer experience.

Digital Retail Platforms

Major automotive marketplaces are expanding into online retail. For example, CarGurus – already a leading vehicle marketplace – recently introduced a new “Digital Deal” tool for Canadian buyers (CarGurus’ Latest Digital Retail Solution Connects Canadian). This solution lets customers complete key steps online: arranging financing, booking test drives and submitting trade-in information before visiting a dealership. Shoppers use a three-step process on CarGurus.ca to build a personalized finance application, giving dealers a head start on ready buyers (CarGurus’ Latest Digital Retail Solution Connects Canadian). CarGurus says the streamlined online-to-offline workflow connects dealerships with more purchase-ready leads while giving consumers confidence and convenience by pre-qualifying much of the deal ahead of the showroom visit.

Integrated Dealer Software

In parallel, traditional dealer management systems are undergoing digital overhauls. In April 2024 CDK Global launched its “Dealership Xperience” platform in Canada (CDK Brings Digital Transformation to Canadian Automotive Retail With New Category of Software: the CDK Dealership Xperience). The open suite is designed to unify sales, F&I and service workflows on one platform. It combines CDK’s core DMS with built-in digital retail and desking tools, plus robust accounting, digital archiving and AI-assisted business management features. The platform also adds online service scheduling and digital service recommendations to improve fixed-operations efficiency.

AI-Driven Financing Tools

One new AI-driven tool is Autocorp.ai’s AVA MatchBook, developed with Canadian Black Book data. The software automatically matches approved loan terms to eligible vehicles on a dealer’s lot, helping staff find trades and purchases that fit a customer’s credit profile (Autocorp.ai teams with CBB to automate dealership inventory matching | Auto Remarketing). The AI-driven solution allows dealers to close complex deals in minutes that would otherwise take hours of manual work.

Clutch, a Toronto-based online used-car retailer, is bridging the gap between e-commerce and brick-and-mortar. The company recently opened a 111,000-square-foot inspection and reconditioning centre – Canada’s largest – in Mississauga, along with an adjoining retail showroom and customer lounge (Clutch expands physical retail presence across Canada as online car sales accelerate). Clutch CEO Dan Park says the new facility brings the company’s mostly digital, Amazon-like buying experience offline for consumers who want to see vehicles in person. He describes Clutch’s approach as “entirely different” from a typical dealership – prices are fixed and “everything is super transparent” on the website. 

Overall, industry experts say these developments highlight how Canadian dealers are using technology to adapt to market challenges. By embracing digital sales channels, unified management platforms and AI-driven workflows, dealerships aim to improve productivity and meet changing consumer expectations.