How online car buying is reshaping the dealership model

Car buying doesn’t look the way it used to.In Canada, much of the process is happening online. Research from AutoTrader shows that digital platforms now play a central role in the purchasing journey, influencing around 60% of vehicle sales in Canada. Customers expect speed, transparency and convenience, often before ever setting foot in a dealership.That shift is forcing change behind the scenes, especially for large dealerships like Steele Auto Group, which operates more than 60 locations across Atlantic Canada and the U.S. It’s also happening across a massive industry. Canada is home to more than 3,700 dealerships and sold roughly 1.86 million new vehicles in 2024, according to the Canadian Automobile Dealers Association.“Modern automotive retail actually is just a massive technology business that happens to sell and service cars,” says Jennifer Hutton, Vice President of Information Technology and Risk and Chief Privacy Officer at Steele Auto Group, in Episode 82 of All Hands on Tech.The numbers back it up. The global automotive digital retailing market is growing rapidly, driven by demand for online-first buying experiences. Consumers are spending more time researching, comparing and completing parts of the purchase journey digitally.For dealerships, that changes the job entirely.“Behind every vehicle sale is a really complex digital ecosystem,” says Hutton. “It includes inventory systems, pricing and valuation tools, finance and lender integrations, customer platforms, marketing technology, data analytics and cybersecurity controls. All of it has to work together in real time and across all of our locations.”What used to be a largely in-person transaction is now supported by layers of software, integrations and data systems—all expected to work seamlessly.That complexity increases quickly as dealership groups grow.Adding locations means adding systems, teams and processes. Without a strong technology foundation, things break down—data gets siloed, processes vary by location and customer experience becomes inconsistent.“At scale, technology stops being about individual tools and starts being more about consistency,” Hutton says.That consistency shows up in shared platforms, real-time data and standardized workflows—things that allow a business to operate as one organization instead of a collection of separate locations.The stakes are higher than they used to be. Major dealership groups are now managing thousands of transactions daily, many involving personal and financial data. That means uptime, accuracy and security are critical.That pressure is coming from customers, too. Research shows that 57% of consumers who are unhappy with their automotive experience consider switching brands, putting more weight on the systems behind the sale.“If systems go down, sales stop. If data is wrong, decisions are wrong,” says Hutton.At the same time, the risks are growing. As more systems become connected, the automotive sector—like many others—is seeing an increase in cybersecurity threats.“We can’t just focus on preventative measures,” Hutton says. “We need to focus on resiliency—how we respond to incidents and how well we keep our business moving forward.”As buying habits change, industries that were once seen as traditional are being reshaped by technology—often faster than people realize.Dealerships didn’t set out to become tech companies. But as customer expectations changed, they had to adapt.Now, in many cases, technology isn’t just supporting the business.It is the business.