We recently attended Dealer Huddle NEXT 2026 in Toronto and Calgary, and the theme that echoed through both events was that AI won’t get rid of your people problems. Taking care of your people through the rapid technology changes we’re all experiencing will separate those who adapt and adopt from the rest as they level up their teams, processes, and operational efficiencies.
Here are our key takeaways from the day:
1. AI Isn’t a Tool, It’s a Process
In Toronto, Stephen Southin delivered a strong message: “AI amplifies operations, good or bad.”
The biggest mistake dealers make is treating AI as a “plug-and-play” widget to solve a localized problem. Stephen argued that AI is not a tool shift; it’s an operating shift.
- Remove fragmented systems: Fragmented systems stop automation from happening. Your systems must communicate bidirectionally.
- Stop looking at dashboards, look for signals: AI is excellent at compressing time. You don’t need a dashboard telling you “engagement is low.” You need a signal telling you to “adjust this price” or “wholesale this unit” right now.
- The 90-Day Plan: Start by identifying where time is leaking in your store (e.g., used car reconditioning process). Map that workflow and decide who owns the outcome before you apply an AI solution.
Southin’s message was consistent in Calgary, highlighting in a panel discussion that the “car person” in our social circles, whom you once would turn to for all your vehicle-related questions, is gone. Now it’s ChatGPT or Gemini giving them better information that’s more suited to their specific shopping and buying needs.
2. Auto Lending Fraud
We know that auto fraud is increasing, but the scale, sophistication and numbers are staggering. Kole Hicks discussed 3 examples of where fraud is happening and how it’s impacting your business.
- VIN Cloning (“reVINing”): An estimated 372,000 potentially fraudulent VINs are currently on Canadian roads. Carfax warns that this leaves buyers (and dealers) at risk of total loss, as authorities seize these vehicles with no compensation.
- The “Long Con”: Hicks discussed a case where a fraudulent entity spent two years “nurturing” a fake credit profile by paying small bills on time to build a high credit score. Once the credit was established, they executed a 3-day blitz, securing $608,000 in loans across multiple lenders before vanishing. This “Build and Bust” strategy is organized crime at a massive scale, and it’s leaving dealers holding the bag.
- Loan Stacking: Organized criminals can submit 50 credit applications to 50 different dealerships in one day. Without a better real-time reporting system (like open banking), they can obtain multiple approvals before a title is ever registered.
Key Takeaways for Dealers:
- KYC is Mandatory: As of early 2026, Know Your Customer (KYC) and FinTRAC regulations mean Identity Verification (IDV) is no longer optional. Lenders are already mandating biometrics and document scanning on used car loans.
- The Liability Shift: The regulatory environment has changed. Liability for fraud is shifting from the lender back to the dealer. If you can’t digitally prove you performed the right diligence, you are on the hook.
3. Canadian Market Insights
Daniel Ross from Canadian Black Book provided a data-driven outlook on where vehicle values and demand are actually heading in 2026. The exchange rate is no longer the primary driver it once was.
Key Market Takeaways:
- US Demand: Canada is not seeing the previous demand from the US, as new cars are more expensive here (partially due to a full year of tariffs). The previously large US export market has largely evaporated.
- Negative Retained Value: The market is still correcting from the inflationary MSRP markups of the COVID years (2020-2022). High prices were set, but consumers did not “digest” them as a sustainable body. Consequently, 2-year-old and 4-year-old vehicles are seeing negative retained value and are not holding equity.
- The Fuel Type Gap: Hybrids and plug-ins remain the high-water mark for retained value. While EV sales collapsed when the Canadian government ended incentives in 2025, the reintroduction of programs like EVAP (Electric Vehicle Affordability Program) is expected to return sales to 2024 levels.
4. The US-Canada Trade Relationship
Brian Kingston, President and CEO of the Canadian Vehicle Manufacturers’ Association (CVMA), joined the event live from Washington to discuss the critical nature of our trade relationship with the United States. Kingston emphasized that the relationship is fundamental to the industry, as 90% of what is built in Canada is exported to the U.S., while the majority of vehicles sold in Canada are imported from our southern neighbor.
This deep integration means the upcoming July 1st, 2026, CUSMA/USMCA review is a major structural checkpoint that could determine the industry’s stability for the next 16 years. With $188 billion in potential tariffs looming (a policy Kingston described as highly unproductive), the bottom line for Canadian dealers is clear: a stable trade agreement is essential to avoid significantly higher vehicle prices for consumers. Furthermore, as Canada aligns with the US by implementing a 100% tariff on Chinese-made electric vehicles, the industry must navigate a volatile period of regulatory shifts and trade negotiations to ensure a resilient economic future.
5. The 9.5-Month Problem
In 2026, retention can be your HR secret weapon to unleash. The 2026 State of the Automotive Workforce Study (presented by hr4 and The Minery Ltd.), shows that the narrative of “we can’t find good applicants” is often false; the real problem is retention.
The average sales team replacement rate occurs every 9.5 months, and within the dealership, 1 in 10 new hires leaves within the first 30 days. The problem isn’t hiring; it’s rooted in onboarding and setting candidates up for success.
Key Takeaways for Dealers:
- Focus on Retention: With 27.6% of exits occurring within the first 90 days, connection & alignment are two important elements in determining the success rate of a candidate. Setting proper role expectations and support frameworks can drastically reduce these turnover rates.
- Manager Disengagement: Another key factor in new hire failure is manager disengagement, which is often caused by the manager having too much on their plate. Systems and efficiency tools must be implemented to free up manager time for mentorship.
- Check-ins: This is non-negotiable for the incoming workforce (Gen Z is our largest population hub). Schedule daily touchpoints for a new hire’s first week, and outline a 30/60/90-day check-in roadmap to hold managers accountable.
6. Innovation and the Modern Consumer
Mathew Growden, aka ‘Growdy,’ a veteran voice in the automotive space, delivered a session that was part reality check, part survival guide. In an era where consumers are increasingly looking for reasons to avoid the traditional dealership experience, Growden argued that the path to excellence starts by mastering the fundamentals and embracing a radical shift in technology.
Borrowing from the philosophy of “Atomic Habits,” Growden challenged dealers to stop looking for “moonshot” solutions when it comes to innovation and focus on the aggregation of marginal gains. If a dealership can get 1% better at answering the phone, 1% better at website transparency, and 1% better at lead response, the cumulative effect is transformative.
Growden highlighted the impace of the “Zero-Click” reality. Google and AI tools like ChatGPT continue to move toward an “answer-driven” ecosystem. Consumers also no longer want a list of links; they want a single, definitive answer to their questions. Those questions, or prompts, are becoming longer and more detailed. It’s no longer “What’s the best AWD SUV?”, it’s “What is the best car for my family of 3 and my dog? We travel regularly to our cottage in the North Bruce Peninsula. We drive a lot, so fuel efficiency is a major concern (especially with the cost of fuel).”
Key Takeaways for Dealers:
- Answer the Phone: It sounds basic because it is. Consumers call for a variety of reasons, including to verify that the “truck on the lot” actually exists before they commit to a visit.
- Optimize for AI: Search Engine Optimization (SEO) is evolving, yet the fundamentals haven’t changed, they’ve simply become more critical. If you want to show up in AI, your website needs to be a structured data source that AI models can easily ingest.
- Stop Being a “Business,” Start Being an AI Business: To quote Mark Cuban, “By 2030, there will be two kinds of companies: those fully utilizing AI, and those out of business.” The best thing a dealer can do today, is just to start.
If you found any of these key takeaways helpful, or if you’d like to reach out for more information on the content shared at the Dealer Huddle 2026 events, let’s talk → sales@smedia.io.
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