Dealers adopt tech, but integration and impact still lag
The inaugural Canada’s Automotive Retail Technology Study (CARTS), sponsored by RBC Automotive Finance, offers a detailed look at what is shaping dealer satisfaction with retail technology and where the biggest gaps remain.
Commissioned by CADA’s Industry Relations team, with the research conducted by the Clarify Group, the study is based on 549 completed surveys conducted July 17–21, 2025. That includes 261 decision-makers — dealer principals and managers responsible for or influencing technology investments — and 288 end-users who work with those systems daily.
The study is part of CADA’s Road Ahead research series, and is designed to help dealers better understand the challenges and opportunities tied to technology adoption.
CADA President and CEO Tim Reuss said the study’s strength is that it reflects the dealer voice. “CARTS therefore allows you to examine your own tech stack in comparison to other Canadian dealers and to understand where and how retail tech is likely to evolve,” said Reuss.
The findings suggest dealers are not resistant to technology. Instead, they are increasingly focused on whether solutions actually fit their operations, integrate effectively, and deliver measurable value.
The study points to significant opportunity, but cautions dealers to focus less on feature lists and more on business outcomes. It recommends challenging vendors to demonstrate how their solutions address specific needs, while also emphasizing governance, approved tools, and consistent internal policies.
Grant Simons, Vice President and Head of RBC Automotive Finance, said that dealer perspective was central to the bank’s decision to sponsor the study. “We were attracted to the fact that this is the voice of the dealer and how dealerships around Canada are interacting with technology and where there may be opportunities for us to partner together for a more frictionless, constructive client experience,” said Simons.
The study also highlights differing attitudes toward adoption. Nearly 30 per cent of decision-makers identify as early adopters. Another 37.2 per cent are open to change when the business case is clear. One-third remain cautious, preferring a wait-and-see approach.
Grant Simons
Where the study becomes more pointed is in identifying friction. A majority of decision-makers said they are not using their technology to its full potential and continue to struggle with integration. End-users said they want simpler interfaces, easier navigation, and better system connectivity.
Simons said the lack of integration remains a key issue across the industry. “In our experience, there are so many vendors in the industry who are all innovating in their own silo, but there really isn’t an ability to have a fully end-to-end view of the client experience,” said Simons.
“You have to start with the client experience and work backwards rather than trying to solve individual problems and then trying to duct tape them together.”
He added that technology must remain flexible to different business models and customer expectations. “But everyone is different — brands have different expectations, customers have different expectations,” said Simons. “The technology needs to accommodate that.”
Artificial intelligence is another area where the study reveals a gap between interest and execution. Nearly 60 per cent of decision-makers report using some form of AI, primarily in marketing and sales. However, the impact remains limited. At the same time, 58 per cent of end-users have yet to use AI at all.
For Simons, that reflects a broader challenge. “It just struck me that a lot of businesses are struggling with how to harness the massive potential of AI,” he said. “AI requires large baskets of data. It would be very difficult to use AI in a really meaningful way when the technology isn’t integrated in the way everybody is challenged with.”
Overall, the CARTS study suggests dealers are willing to invest in technology, but are still working through how to implement it effectively. The focus is shifting toward integration, usability, and governance rather than simply adding new tools.
In an interview with Canadian auto dealer when the study was released, Darren Slind, Co-Founder and President of Clarify Group, said the report’s findings exposed a critical disconnect in technology ROI. “Dealers are not short of tools; they’re short of alignment, integration, and consistent execution,” said Slind.
Slind said the partnership with CADA on the project worked well because both organizations shared a focus on the voice of the dealer. “CADA’s leadership gave us the mandate to dig deeper,” he said. “The result is an evidence-based picture of what’s really happening in Canadian retail.”
