11 Chatbots For Car Dealerships To Upgrade Your Business in 2025

Artificial intelligence (AI) powered chatbots are changing how many businesses operate—even auto dealers. Chatbots in the automotive industry help automate and personalize customer interactions like lead generation and customer service. They’re designed to enhance the customer experience by offering 24-hour support and boosting your team’s day-to-day productivity.

Visitors can choose the kind of help they need, whether it’s scheduling a service appointment, getting guidance on comparing vehicle models, or booking a test drive. Your customers will get real-time assistance instead of waiting on hold to talk to a representative or come down to the dealership in person.

You may be wondering how automotive chatbots work. AI chatbots answer frequently asked questions (FAQs) and guide your customers through different scenarios using machine learning (ML), natural language processing (NLP), and predefined communication flows. ML is a type of AI that uses current and historical data to determine outcomes with algorithms. With each interaction, the algorithm learns and adjusts to improve predictions with use.

NLP allows machines to process human conversational language, so users can ask questions naturally and understand the chatbot’s response. This is paired with predefined flows to direct the conversation and anticipate the user’s needs.

Chatbots are used across all industries because of their benefits. Along with around-the-clock customer support, chatbots help dealerships:

• Capture information about their leads
• Assist more people overall
• Increase conversion opportunities
• Offer website navigation help
• Give personal recommendations

Why Use a Chatbot For Your Car Dealership

Chatbots in the automotive industry direct users through common problems or needs, such as booking appointments, locating the closest dealership, and helping fix account or payment issues. They can also save you time and money, as your employees will waste less time on repetitive tasks or answering FAQs and instead focus on sales-boosting efforts. Here are a few ways to use chatbots in your business.

Easily Answer Customer Questions

Purchasing a vehicle is a huge investment for many buyers, so it’s no surprise they want to feel secure in their decision by asking many questions. With chatbots, your customers can get all their questions answered promptly and without burdening your agents. They’re trained to handle the most common car-buying inquiries, so shoppers come to the dealership more informed and ready to buy.

Calculate Car Budget

Chatbots aren’t just for answering questions; they can provide helpful tools to customers like a car budget or loan calculator. Buyers can quickly learn what they can afford to purchase through your dealership’s chatbot instead of spending time filling out forms or waiting for a quote through a third-party site. You’re offering a valuable service, and your dealership will capture more leads simultaneously.

Car Inquiry Cart

Your auto business also has the option to turn your chatbot into a virtual shopping cart, letting customers compare vehicles and add their preferences in one request. This streamlines the process for your sales team since they don’t have to handle and keep track of multiple inquiries for the same customer. It’s also a more user-friendly experience for the customer.

Offer Car Maintenance Services

Through your auto chatbot, customers can easily schedule their own service appointments, ask for personalized maintenance recommendations, or get more information about specific services. Automating this process frees up your service department staff to focus on more critical tasks. Plus, the chatbot is available 24/7, so customers can access it when it’s convenient for them.

Schedule Test Drives

Managing test drives can be challenging for dealerships if they’re not using this chatbot feature. Having customers schedule test drives via the chatbot ensures the cars they’re interested in are available during the time they requested, eliminating wait times and other issues. It also captures key customer information for your team, reducing their workload while qualifying leads.

Simplify Insurance Policy for Customers

A strongly built automotive chatbot can handle more complicated requests, like breaking down dense, jargon-filled auto insurance policies into plain language. The chatbot uses customer data like driving history, coverage, and vehicle details to share appropriate insurance information. Depending on the chatbot’s functions, customers may also be able to change their policies or coverage options.

Increase Inbound Car Sales Leads

Chatbots provide a more interactive experience for your customers, guiding them through your dealership’s services and vehicle offerings based on their preferences. They’re also a great way to share pricing information, the latest features in new models, or new sales or offers with visitors. These features help generate more leads for your dealership and increase engagement.

Provide Live Chat Assistance

You boost customer satisfaction even further by offering a live chat feature in addition to the automated chatbot. In fact, 71% of customers expect support through live chats, and 85% of prospects who use live chats are more likely to become buyers.

Customers will receive chatbot support as soon as they land on your site, and they can instantly transfer to a live agent for more assistance. Agents can access their chatbot history to better personalize their service and address inquiries. This convenient communication method is a great way to build trust and nurture more leads into sales.

Social Media Help / WhatsApp Bot

Your website isn’t the only place where a chatbot can help. Offering assistance on popular platforms like WhatsApp turns the social media app into your own car sales lead app. Instead of waiting for prospects to visit your website, you can meet them where they already spend their time, offering information on vehicle pricing, features, current promotions, or your closest dealership.

11 Best Auto Dealer Chat Bots in The Market

The best chatbots for auto dealers include features that provide top-notch customer service and enhance your lead nurturing and sales strategies. Check out the list below to find a great option for your dealership.

Podium

Podium’s AI Employee, Jerry, is designed to increase lead generation and boost customer engagement for businesses in the automotive industry and beyond. It can automatically answer inventory and availability questions using real-time information, enhancing customer satisfaction and keeping leads warm. Jerry responds to customer emails, website inquiries, and text messages day and night using conversational language.

HubSpot

Hubspot’s free chatbot builder offers customer support, appointment scheduling, and lead qualification. This platform lets you build a custom AI-powered chatbot based on your dealership’s goals with no coding required. However, accessing its premium features will cost you.

ManyChat

This chatbot is primarily designed for use on Instagram, WhatsApp, and Facebook Messenger but also offers text messaging and integrations with other platforms if you select the “Pro” or “Premium” plan. Your dealership can use it to qualify leads, answer customer questions, share dealership updates, or have customers book appointments.

Tidio

Lyro, Tidio’s AI support agent, chats with your customers and offers support in seven languages. It can also automate lead generation and sales workflows, letting your team focus on high-value requests. While the chatbot isn’t free, Tido charges a flat fee per conversation, letting it scale with your business.

ChatFuel

Use this chatbot to staff your Facebook page or Instagram account and automate customer support. That support is in addition to using the chatbot on your website. This no-code builder has 50 templates to choose from and integrates with ChatGPT. Unlike some other chatbots, ChatFuel doesn’t offer a free, basic option, so you may need to look elsewhere if your budget is tight.

SendPulse

This multichannel marketing platform offers a range of chatbots for social media channels and your website, including a live chat option. It even allows you to integrate your chatbot data with other marketing efforts, like email campaigns. SendPulse offers a basic level plan for free but limits your monthly messages and chatbot triggers.

REVE

REVE offers a solid foundation if you’re looking for a straightforward customer support AI chatbot to manage FAQs. It also offers a live chat option for agents to manage more complex requests. Pricing depends on your dealership’s needs and if you want the chat combo or live chat only.

Botsify

This chatbot integrates with numerous platforms, offering 24/7 support across all your channels. Customers can have their questions answered quickly and schedule their appointments directly. It also automates your lead generation. Dealers can choose from a lower-cost DIY option if they feel comfortable building their own chatbot or select the higher-priced done-for-you option.

Resolution Bot

Intercom’s Resolution Bot is ideal for auto dealerships interested in tailoring their chatbot answers to customer demographics. The chatbot dashboard also lets you review conversation performance to ensure the bot resolves customer issues.

Spyne.ai

A chatbot designed specifically for the auto industry, it helps customers purchase and maintain vehicles. It offers an immersive experience through its Virtual Studio and 360 Degree Spin features so customers can view studio-grade images of automobiles from any angle.

How Are Car Dealers Using AI?

Auto dealers are incorporating AI into their business operations well beyond its use in chatbots. AI-based solutions are helping streamline many sales, marketing, and inventory processes in the industry. Dealerships even use AI’s predictive analytics to manage vehicle maintenance and prevent fraud.

Here are just a fraction of the ways car dealers use AI:

• Inventory management: AI analyzes market trends and historical sales data, among other variables, to predict demand for specific models.
• Enhance website searches: AI can be used to improve your website’s search functionality so customers can quickly find the information they’re looking for.
• Marketing: AI helps you better target digital ads and create personalized marketing campaigns based on your audience and past customer behaviors.
• Assists sales team: use AI in your CRM to improve lead management and automate follow-ups.
• Service and maintenance: AI-based algorithms can help dealerships anticipate when vehicles need maintenance and optimize scheduling.
• Fraud detection: AI can find suspicious activity by analyzing data to prevent and detect fraud.

Podium helps dealerships convert website visitors into buyers using AI-powered solutions, including chatbots. Customers can start a conversation with Webchat through your site or by text message, and our AI Employee automatically collects lead information to enhance the customer experience and increase sales. Interested? Explore all of Webchat’s features and start improving your customer support today.

Want to harness the power of AI from your desk? Try our AI BDC to automatically respond to inquiries and stay connected to leads from anywhere.