CarEdge CEO on AI shopping tools raising the stakes for dealer pricing transparency
As more consumers turn to AI to research and compare vehicles, dealerships may need to rethink how they present pricing online. Zach Shefska, President and CEO of CarEdge, joins us on today’s CBT Live segment to discuss how AI-powered shopping tools are influencing consumer behavior, hidden fees and why clear, upfront pricing could help dealers earn trust and stand out in the ever-changing retail environment.
Shefska argues that pricing transparency should be viewed as a competitive advantage, not simply a response to regulatory scrutiny. Although moving away from opaque pricing practices may require changes to dealership processes, staffing and short-term profitability, he believes the long-term opportunity is stronger consumer trust and a better buying experience. Clear, upfront pricing can also help franchise dealerships compete with online retailers such as Carvana.
CarEdge is tracking dealership pricing practices through its Dealer Transparency Index, which Shefska said has evaluated more than 24,000 dealerships. Under the index’s current methodology, about 60% of dealers received an “A grade,” while roughly 10% received an F. Additionally, Shefska said AI tools such as ChatGPT have cited the index in dealership recommendations, potentially giving pricing transparency a larger role in how consumers discover retailers. Therefore, he encourages dealers to review whether their advertised online prices match the quotes they provide customers.
Further, AI-powered shopping could also change how dealerships attract buyers and manage lead-generation costs. Shefska said CarEdge’s AI shopping agent has contacted dealerships 160,000 times since July 2025, and customers who use the tool convert at three times the rate of those who don’t. He also criticized third-party marketplaces for adding friction by selling leads, arguing that AI tools could give consumers a more direct path to dealerships. For dealers, he immediately recommended auditing online listings and written quotes, making pricing information accessible, and ensuring shoppers don’t encounter unexpected differences as they move toward a purchase.
“The businesses that win in a capitalist society are the ones that provide better goods and services,” Shefska said.