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LotTalk · Season 3 · Episode 10

The CarMax Wake-Up Call

CarMax plugged its 45,000-vehicle inventory into ChatGPT, and the industry is arguing about whether it matters. The LotTalk crew settles it with a live demo from a real consumer: producer Brett Branstetter shops for a car inside ChatGPT and books a test drive in two clicks.

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The short version

CarMax's ChatGPT integration lets shoppers browse its nationwide inventory of more than 45,000 vehicles, get vehicle recommendations matched to their stated budget and needs, and receive instant trade-in offers without leaving the ChatGPT interface. On this episode, Lotpop COO Brett Branstetter demos it live as a real consumer: he tells ChatGPT he is in the Kansas City market, wants a compact SUV under $40,000 with a payment under $500, and within two clicks he is on the CarMax site booking a test drive. The wake-up call for dealers is not the integration itself. As guest commentary from Frank Knox put it, this will be enhanced over months, not years, and a dealer does not need CarMax's budget to compete: with answer engine optimization (AEO), a smaller store can show up as the answer when AI recommends where to buy, without integrating anything.

Key takeaways

What you'll walk away with

  • A real consumer went from question to booked test drive in two clicks inside ChatGPT. Brett told ChatGPT his market, budget, body style, and payment ceiling, and it returned CarMax listings with stock numbers, locations, and reasons, then linked straight to scheduling.
  • Frank Knox called it right: game changer, yes; years away, no. His comment on the Cars Commerce post said this will be enhanced over the course of months, not years. CarMax's processes plus AI running 24/7 is, in his words, game on.
  • Renaldo's AI test left four big-name dealerships off the page entirely. He asked AI for Ford F-150 financing options in his Colorado area, and four established stores, two of them publicly traded, did not even appear. Without AEO, you are invisible to that shopper.
  • Convenience trumps everything for the buyers funding your store for the next 30 years. Brett's words as a millennial consumer: newer generations are not asking who works hardest for their dollar, they are asking what the easiest, fastest path is, even if it costs a few bucks more.
  • You do not need CarMax money to compete, you need AEO. Smaller dealers cannot integrate directly with ChatGPT, but they can structure their content to be the answer AI serves up, which puts them in the same conversation without the enterprise budget.

Episode chapters

Jump to the part you need. Timestamps match the audio and video.

  1. 00:00Cold open and a new release scheduleLotTalk now drops Tuesday and Wednesday at 4:30am Central, plus the full video Wednesday at 1pm.
  2. 02:50The Brian Kramer post that lit up the industryCars Commerce's EVP asks: is the CarMax-ChatGPT integration years away or impacting today's market?
  3. 04:59John's verdict: if you're not on board, you're behind
  4. 06:21Reading the comments: Frank Knox vs. the head-in-the-sand crowdGame changer, yes. Years away, no. Months, not years.
  5. 08:30Chris pushes back on 'ChatGPT is still in the crawl phase'Millennials and Gen Z use AI like we drink water.
  6. 09:46Inside the integration: 45,000 vehicles and instant trade offers in ChatGPT
  7. 10:47Renaldo: an unfair advantage only because the competition is asleep
  8. 14:36John's reality check75 percent of daily tasks have nothing to do with selling inventory, and half the lot sits with no leads.
  9. 18:24A real consumer takes the micProducer and COO Brett Branstetter joins as the millennial shopper voice.
  10. 20:37Convenience trumps everythingWhy the Amazon habit is coming for the car deal.
  11. 25:45The live demo: ChatGPT shops CarMaxKansas City, compact SUV under 40K, payment under 500, two clicks to a test drive.
  12. 28:01The trust questionShoppers trust AI because it is objective, and dealers have been their own worst enemy for 50 years.
  13. 30:40The point of it all: turning AI on is not enoughYou need GEO and AEO in place to be the option AI recommends.
  14. 33:26The closing wake-up call and what comes next

The post that forced the question

Brian Kramer, Executive Vice President at Cars Commerce, put a simple question in front of the industry: what are your thoughts on the recent CarMax integration with ChatGPT? Is this a concept still years away, or something impacting today's market? The LotTalk crew had been talking AEO for two episodes already, so Chris Keene, John Anderson, and Renaldo Leonard went through the comment thread on air, named names, and then did something nobody else in the thread did. They ran the integration live with a real consumer at the keyboard.

Game changer, yes. Years away, no.

Frequent LotTalk guest Frank Knox answered Kramer's question in two beats: game changer, yes; years away, no. This will be enhanced over the course of months, not years. CarMax has great processes, and feeding those processes to AI that runs 24/7 is game on. Chris respectfully disagreed with the more cautious takes in the thread, including the view that the integration would be positive but not a game changer because the contest is still about getting people to your website. His counter: before a shopper ever reaches your website, you have to be the answer the AI serves up. That is answer engine optimization, and without it you are not even in the running. Renaldo proved it with a test from the previous episode: he asked AI to show financing options for Ford F-150s in his area of Colorado, and four big, established dealerships, two of them publicly traded, did not appear on the page at all.

What the integration actually does

The crew read from an investment-firm writeup on the partnership. The integration lets customers engage in conversational car shopping, browse CarMax's nationwide inventory of more than 45,000 vehicles, and even receive instant offers on their trade-ins, all inside the familiar ChatGPT interface. Renaldo's framing: this is not AI crawling. This is a full-on 40-yard dash that keeps going around the globe, an unfair competitive advantage only because the competition is asleep at the wheel. Dealers who keep waiting are standing at the 7-Eleven flipping through the Auto Trader.

John's reality check on where dealer time goes

John brought it back to the operational numbers Lotpop sees every week. Everybody is obsessed with sourcing, yet dealers routinely have more vehicles sitting in their 0-to-15-day bucket than they have sold in the past two weeks. Roughly 75 percent of what dealership staff work on daily has nothing to do with selling the inventory they own, and about half of inventory sits with no leads on it. Then he shared what Gemini told him when he asked, as a 40-year car veteran, how a dealership should use AI to serve customers better. The answer ended with a pro tip worth taping to the tower.

The most successful dealers in 2026 are using AI to handle the task while their staff focuses on relationships. It's about being high-tech so you can remain high-touch.

A real consumer runs the demo

The crew pulled producer Brett Branstetter, Lotpop's chief operating officer, from behind the curtain. Brett has never worked in a dealership. He is a millennial consumer, and his view of the shift was the sharpest segment of the episode: newer generations are not asking who works hardest for their dollar, they are asking for the easiest and fastest path to what they want, even at a few dollars more. Convenience trumps everything. Then he shared his screen. Inside ChatGPT with the CarMax integration enabled, he typed that he is in the Kansas City market, wants a compact SUV under $40,000, is open to leasing or buying, and needs a payment under $500. ChatGPT returned CarMax listings one by one with stock numbers, locations, and the reasons each fit, then a Get Started button took him straight to the CarMax site to book a test drive. Two clicks. His explanation of why shoppers trust it: AI is objective. It knows he is a 35-year-old in Kansas City looking for an SUV under $40,000 and matches the closest fit, with no 100-day-old unit being pushed on him. At one point the tool even flagged a vehicle as a sneaky option, a unit it suspected was priced below what its equipment justified. It feels like the AI is on the shopper's team.

The empowering part for independent dealers

Brett made the point the whole episode hinges on: CarMax has enterprise money, but smaller dealers do not need an integration to compete. With AEO done right, a store of any size can be the answer AI recommends when a shopper in its market asks where to buy. The work compounds, too. Get your AEO right now and it builds on itself for years. Chris closed the loop: simply turning an AI tool on does not mean it works. You need the proper GEO and AEO in place to be the objective option the consumer's AI puts in front of them. For the foundation on how shoppers reach your lot today, revisit the episode on how customers find your inventory.

The Monday-morning action plan

Concrete steps straight from the episode:

  • Run Renaldo's test on your own store: ask ChatGPT or Gemini a real shopper question about your market, like financing options on a model you stock. If your store is not in the answer, you have found your gap.
  • Try the CarMax integration yourself: shop it the way Brett did, with a budget and a payment ceiling. Feel the two-click path your customers are comparing you against.
  • Start the AEO education: Brett's advice was simple. Search for how to optimize for AEO and GEO and put a little time in now, because the work compounds as AI search grows.
  • Rebalance the day: if 75 percent of your team's tasks have nothing to do with selling the inventory you own, fix that before you buy another car at auction.

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Transcript is auto-generated from the episode recording and lightly formatted. It may contain transcription errors.

Chris Keene (00:00): In this week's episode, we find out what made Chris say this. Cuz chat GPT is not in the crawl phase. It is where we're at today. Hey folks, welcome back to Lot Talk powered by Lot Pop. I'm Chris Keene, one of the co-hosts, joined by the great curmudgeon, Mr. John Anderson, and the esteemed Mr. Ronaldo Leonard. Now, we got a surprise for you guys, okay? We have had so much great feedback of everybody loving Lot Talk. We've been doing this for over 18 months now. I'm going to give the credit where credit's deserved. Mr. John Anderson said, "Hey, let's put a podcast together and let's give back to this community that's been so great to us." So, we did it. So, over 18 months ago, we did this and it has just been doing nothing but exponentially growing. So, instead of just airing this one time a week, we're going to give you guys twice. Every Tuesday at 4:30 a.m. Central Time, the audio version of this is going to release. And then at 4:30 again Central Time every Wednesday, another audio version of this is going to release. So, you're going to get two audio versions released at 4:30 a.m. Central Time. So, you folks that are still hammering your New Year's resolution, you're still on that treadmill, God bless you. You're 60 days in. Great job. Or if you're just hammered at 4:30 in the morning. So, whatever you're rolling into the driveway

Chris Keene (01:37): Whatever floats your boat at 4:30 a.m. on Tuesday, it's going to get released at 4:30 a.m. all Wednesday, you're going to get another round of it. But, there's a lot of you that jump on the YouTube. There's a lot of you that like the Spotify and you like to watch the video, okay? You're going to get that 1-hour segment of Lot Talk powered by Lot Pop. So, now three times. You got three opportunities in the week, Tuesday, Wednesday, and Wednesday again. Three different opportunities. 4:30 a.m., 4:30 a.m., 1:00 p.m. All Central Time. So, make sure to tune in. Make sure to save it. Make sure to subscribe to it. Make sure to share it. Much love to everybody that dropped a review on the Apple. Continue, please. We love the reviews. We thank you for them. Continue to keep dropping those reviews. We greatly appreciate it. It helps us reach more. It helps us find more opportunities to bring in more experts because we ain't experts, but we know a lot about a little and a little about nothing. But, we figured it out. So, keep sharing, keep subscribing, keep liking. Thank you, thank you, thank you. And keep giving us those reviews on Apple. They're so appreciated.

Chris Keene (02:50): So, gentlemen, we left off with talking about AEO again. We talked about it last week. We talked about it yesterday. I want to dive in a little bit more on this because I saw and I couldn't help but giggle. Now, I am not going to lie. I sat there and was like, "Yep, CarMax is listening to us even though they like probably been working on this for a long before we even brought it up." But, I'm just going to take some credit like CarMax is listening to Lot Talk and I saw a post from our buddy Brian Kramer over at Cars Commerce. And this post was really, really interesting and I am going to share it because I just thought, "Wow, the timing of this was unreal." So, for you viewers on the YouTube or on the Spotify, you'll get to see this. For you listeners on the Apple or if you're listening on the Spotify, I'll do my best to explain it to you. Kramer puts a post out there and I quote, and this is Brian Kramer, Executive Vice President over at Cars Commerce. "What are your thoughts on the recent CarMax integration with ChatGPT?" Now again, he posted this yesterday. Um here at Lot Talk powered by Lot Pop, we started talking about this last week. So just to remind y'all, we brought it to you first, okay? So he posts on there, "What are your thoughts on the recent CarMax integration with ChatGPT?" His question, "Is this concept that is still years away or is it something that's impacting today's market?" Now uh John. Just forget everything that has been thrown at you over the last couple days here, but just thinking about that right there. And again, you're 40 years in the business. You've seen a lot of the paradigm shifts. Y2K, selling cars on the internet. Now everything is on the internet. You got two dealerships now, you're brick and mortar, you're digital. That comment right here, that statement or that question, is it concept or is it still years away or is it something that's impacting today's market? Forget everything that you've already been researching. If you were to see that and CarMax and ChatGPT, what's your thought?

John Anderson (04:59): Well, I'm cheating a little bit because I would be less than honest if I didn't tell you that, you know, we've got someone who works at our company that uh is of the generation that this speaks loudly to. So um you know, I would tell you that uh if you're not already on board, you're behind. In my opinion. And I read the comments on this, you know, we looked at this this morning and read some of the comments and you know, I know there's some uh dissenting comments in here about how important it is, but I, you know, to my transparency, um yeah, I mean there was some very bizarre comments in here from some really great industry leaders. I mean some really great industry leaders. And listen, I'm going to call them out and if you know them or if this person is listening to Lot Talk, call me. Because I think some of the comments on here are trying to put our heads in the sand. And when you look at some of these comments in here, like oh Frankie Knox, you know, who's been a frequent guest here on Lot Talk, he says it's a game changer. Yes. Years away? Absolutely not. No.

Chris Keene (06:21): So, let me quote it exactly like he said it for y'all that are listening and not viewing. Frank Knox answering Brian's questions, game changer. Yes. Years away? No. This will be enhanced over the course of months, not years. CarMax is a company with great processes. We all know that. Take those processes and feed them the AI and allow it to run 24/7, game on. You know, one of the things that I found relatively insightful was Spisak, good old David Spisak, who has been an amazing leader in our industry for years upon years upon years, who is noted as having a very low churn rate of employees, you know, in his dealerships. But David Spisak, number one, just 2 months into the year in 2 years after the most uh even discover chat GPT slash AI, very well-resourced, leading-edge companies such as CarMax and Cars.com have made an all-in commitment to responding as quickly as possible to the changing car buyer landscape. This is impactful. His second point, how much of a game changer? This is more difficult to answer. Mr. Spisak, this is where I'm going to disagree with you respectfully. But he says in here, "How much of a game changer? This is more difficult to answer." No, it's not. But he does say, "But with AI and AI tools already becoming ubiquitous in the landscape or in the shopping process, logic would dictate it would not be a game changer. So, it becomes how successful anyone is in getting people to their website and how significant their utilization of AI is positively impacting the user experience. I believe it will be positive but not a game changer." Well, this is where I'm going to disagree with you, Mr. Spisak, because what we have unpacked, what we have unfolded, and what we are bringing to the market, before you can even get them to your website, you got to be able to have the right answers in your answer engine optimization to be able to be relevant, to even have your site show. In yesterday's episode, Ronaldo talked about how he said, "Hey, show me financing options for Ford F-150s in my area. Who's best people to talk to about this?" There are four dealerships that are big boy dealerships that have been doing business for a million years in his area of Colorado, two of them being publicly traded companies, and they weren't even on the page. So, yeah. It is a game changer with this AEO. I mean, you got guys like John Ellis. Love you, John. You're one of the most forward-thinking people out there. Chat GPT is still in the crawl phase. I beg to differ, sir. This is where I'm going to say, you've heard me all say it before. And Ellis, please call me. Miss me with that guys, cuz Chat GPT is not in the crawl phase. It is where we're at today. And the generations that are paying us today and going to be paying you dollars for a long term, which is the millennials, which is the Gen Zs. They use AI like we drink water. Y'all better get on the boat.

Chris Keene (09:46): Dude, this article was interesting, Ronaldo. The thing that I blew up here. Look here on the screen, viewers, listeners. The subject line here was, this was the article about um CarMax and ChatGPT, the partnership. Is CarMax's ChatGPT app a game-changer for auto retail? Well, the second line of this, the innovative integration allows customers to engage in conversational car shopping, browsing CarMax's nationwide inventory of over 45,000 vehicles, and even receiving instant offers for their trade-ins, all within the familiar ChatGPT interface. It's a bold step positioning CarMax at the forefront of AI adoption in an industry traditionally slower to embrace cutting-edge technology. Ronaldo, your thoughts.

Renaldo Leonard (10:47): Well, I, you know, uh I'm thinking about that response. And then, you know, what was it? Maybe actually that response came even after having access to this information right here. It just lends itself to the fact that AI is not crawling. This is a full-out, full-on, all-in 40-yard dash. But, it's not going to last 40 yards. This is going to take you around the globe. I just don't understand how, knowing that you already have one of the titans out in the marketplace adopting a strategy that is going to, as I mentioned the time we spoke, an unfair competitive advantage. And the only reason that it's an unfair competitive advantage is because the competition is asleep at the wheel. And so, when we see, I mean, we'll read it a year, 2 years from now, how they kind of jump-started everything that they've been dealing with and the position that they found themselves in today, I can see their C-suite sitting around saying, "We have to do something to rebound over the last 12, 16 months to recover and push ourselves ahead." And this is the end result. Early adopters, forward thinkers will see themselves cast above the competition and have that unfair competitive advantage and be able to execute on all of the doors that it's going to open for. You know, everybody else might as well be sitting back at the corner on the 7-Eleven. You remember those little magazines we used to, you know, advertise our vehicles in?

John Anderson (12:27): Yeah, the Rag Top. Yeah, if you were in the market and you wanted to see what was available out there in the market without going to the dealership, you went to the 7-Eleven to get the Auto Trader, right? Or the Penny Pincher.

Renaldo Leonard (12:43): That's where you may as well be because you're going to get left behind. And this is warp speed development. I mean, just like anything technology-wise, you see a trickle, trickle, trickle and then there's a flood. This is water creeping in under the door. Uh you know, you go back at thinking about the movie Titanic. Water's coming in.

Chris Keene (13:09): And the band played on, baby. And the band played on.

Renaldo Leonard (13:12): Yes, they did. So, um yeah, when you have an opportunity like this in technology, we've been so focused on using AI to handle the lead portion of follow-up, when we saw that there was a gap in how our teams were following up with those leads that were coming in. This is an opportunity to make sure that you're directing prospects you didn't know those out there in the market to your door by positioning yourself as an authority and answering questions they don't even know they have on what they're thinking about they want to do research on.

John Anderson (13:49): But how many times have we said, Ronaldo, how many times have we said meet the customer where they're at? Answer their question first.

Renaldo Leonard (13:58): Absolutely. And if they're asking those questions to Gemini and chat GPT, why don't you go and answer them?

Chris Keene (14:05): Yeah. I mean, John Anderson. So you got this Cavault, I don't even know how to pronounce it, but it's an investment company that wrote this article about CarMax and chat GPT and they've obviously done their research, and an investment company said it's a bold step positioning CarMax at the forefront of AI adoption in an industry traditionally slower to embrace cutting-edge tech. John, what's your take on all this?

John Anderson (14:36): Dude, I mean I'm literally sitting here thinking while you and Ronaldo are talking, I could go, I mean I could literally go on for an hour right now because I'm just thinking about the things that we see as we bring on new dealer partners. I'm thinking about what we talk about on here numerous times about the lack of service that there is out there period, right? The fact that I'll give a good tip for average service at a restaurant nowadays because service in general has just gone by the wayside because we all have our attention elsewhere. And, you know, I think the reason why that investment company said what they said is for that very reason, Chris. You know, listen, the topic at hand that everybody has focused on right now is sourcing. Sourcing inventory. That's a big topic. You know, there's 20 groups built around that, right? It's a huge topic. My question is, and it's one that our CEO asks regularly is, "Okay, I have the car, now what?" Right? So, we're all bent on sourcing. And by the way, one of the things we look at constantly in our software, how many vehicles has the dealer sold in the last 2 weeks? And then you look at that 0 to 15-day bucket of inventory, and they've got more sitting in their 0 to 15-day bucket than they've sold in the last 2 weeks, and they're talking about sourcing. Right? Now, what am I going to do? Overload myself? So, then we look at some of the statistics, right? 75% of the things that we have our people working on on a daily basis have nothing to do with us selling our inventory, right? 50% of our inventory sitting with no leads on it, right? And so, we're talking about all these things, but then when I think about what I've learned already today, um I want to bring up this pro tip again that I punched in. Again, I'll remind, I punched in, "I've been in the automotive space for over 40 years, and if I'm a dealership, what can I use Gemini and other AI sources for to help better serve my customer?" Because ultimately, guys, we can talk about all this that we want to talk about, but ultimately, it comes down to the person that serves the consumer better is going to be the person that wins. Until we understand that I got to provide a better level of service to my customers in order to win nowadays, because customers have everything at their fingertips, and they can get information in 15 seconds now. So, if I'm not going to position myself to provide information that they're looking for in a fast way, in a knowledgeable way, then I lose. And the way for me to get a market advantage over my competition is to provide those things. And of all the stuff that it spit out when I punched that question in, it had at the very end of it, it said, "Pro tip. The most successful dealers in 2026 are using AI to handle the task while their staff focuses on relationships. It's about being high-tech so you can remain high-touch."

Chris Keene (18:12): Read that last part again. Read that last part again.

John Anderson (18:14): It's about being high-tech so you can remain high-touch. Customer service, customer service, customer service.

Chris Keene (18:24): You know, John, I think we would be doing our listeners and viewers a disservice if we didn't take a real-life consumer and give their input. And what I mean by that, listeners and viewers, is Brett Branstetter, who is our chief operating officer, and he produces the show for us. He is not from the retail car business.

Chris Keene (18:46): Though he has been around the car business, he has never worked in a dealership, he's never worked for an automotive company, he is an art major by design. You know, so I mean he is not a car guy, but he is a consumer. And he is of that Gen Z. Oh, no, he's a millennial. I don't know. Brett, get from backstage. Come on stage with us. Let's be transparent, too. Brett always keeps us honest, right? Because a lot of times he'll see the way that car dealerships, through us, he sees the way car dealerships work and he's like, "Oh my god, are you kidding me?"

Chris Keene (19:29): Yeah. Y'all never seen a Brett. For sure. But you're, is it millennial? You're millennial, right? Or you Gen Z? Okay. So, Brett, you were doing some things with us backstage that blew all of our minds. Because like I'm telling the viewers, like I'm telling the listeners, you are a normal consumer, okay? You don't use our dealerships like John and I do. I mean, we're going to call them, work their ass like a rib, because we know everything they know, okay? So, but you just, you go service your car like a normal consumer. You buy cars like a normal consumer. So, you're a normal consumer. So, I just wanted to paint that picture for our audience. Has frustrations like the normal consumer.

Chris Keene (20:20): Like a normal consumer. But share with us some of the things that you were doing with us backstage and then some of the things you've been sending us on the experience in using, you know, these AI engines like Chat GPT or Google Gemini. Share with us some of those things.

Brett Branstetter (20:37): Yeah, I mean, I think even for millennials and people younger than me, I think the AI, like you said, the AI world is growing faster than any of us can keep up with. And you know, as we said earlier, I think the automotive industry is a little slower to adapt cutting technology, but I think that if you guys are able to get on top of this now, this is something that will only compound on top of itself. If you guys get right with your AEO now, the AEO in 10 years will be through the roof. And I think, John, there was a point that you made earlier that I think is a big point to all this is, you know, he was talking about how he tips well with great service. And I think that, you know, for a lot of generations, um, you know, people focused on who works hardest for my dollar, right? Who gives me the most profit for my dollar in the sense of who's giving me the best service, who's giving me something in return. To be honest with you, I mean, I can't speak for entire generations, but from what I can say, I think that that outlook has really shifted from saying give me the most, or you know, who can give me the most back, to what's the easiest path for me to get what I want. And I think that honestly convenience trumps everything.

Chris Keene (21:46): Hold on, hold on, before you go any further. Before you go any further, say that last part again.

Brett Branstetter (21:53): So, instead of focusing on who works hardest for my dollar, newer generations are focusing on how can I get what I want the easiest and the fastest? And if that costs me an extra couple dollars, then so be it. I mean, perfect example, think about this. I live in the Kansas City area, right? I live downtown. There are plenty of local mom-and-pop shops. I can go down the street, get my favorite book from a local bookstore at full price. They are amazing people. I know the owners, they're great, you know, I love their store. Or, I can go to Amazon and I can get the book tomorrow morning for maybe a couple bucks cheaper, but the point is that I can trust in that they'll get it to me when I need it, and the convenience is through the roof. That's why Amazon's the number one retailer in the world, is because no matter what, no matter how many mom-and-pop restaurants or mom-and-pop places give you the best service ever, there's always going to be something more convenient. And not that I'm saying I enjoy this, you know, I love mom-and-pop places and I love customer service and I think that's important, but I think people need to also understand that the younger people get, that, you know, the more generations go forward, I think that convenience trumps everything else, or convenience will at least be number one.

John Anderson (22:59): Without intrusion. Without intrusion, right? That's the big thing, right? Man, I got to say this carefully cuz I don't want it to sound like I'm about to say it, right? But, what I mean by that is you'd rather have the convenience and deal with people, cuz people are a pain in the butt sometimes, right? And they intrude in areas that you don't want to be intruded in, right?

Brett Branstetter (23:25): Very simple. This has been around forever. It's the path of least resistance. How many people do I have to go through to get the car, versus can I go to chat GPT, type in a stock number, and go test drive it tomorrow and buy it? I mean, like we were just talking a couple episodes back, you guys were talking about how Amazon's dipping their toe into the automotive. And I'm telling y'all, when that starts taking off, from my point of view, from a consumer point of view, that is a huge threat. That is a huge threat, especially if Amazon decides they want to stock their own cars. If they want to just bypass dealers altogether, that's game over in my opinion.

Chris Keene (23:56): Yeah, I didn't even think about that. I didn't even think about that, John. You know, cuz what if they got the, like when you buy products on Amazon, what do they call them? The Amazon Essentials? That's like their own product. Man, I didn't even think about that. What if they start going Amazon Essential cars?

Brett Branstetter (24:13): I mean, we don't have to go what ifs, and I know that's probably a while away. I'm just saying that, you know, this is the stuff that people ought to think about. I understand that the way things worked for the longest time was customer service, and that needs to stay. I'm not saying that needs to go, but we also have to keep a very strong eye on what you said, John, is how many things are standing in front of the consumer and the product. And what is the through line to that?

John Anderson (24:36): Well, okay, but let me ask you a question though. Let me ask you a question, Brett. You talk about, you know, the customer service. Okay, yeah, that's important, but can I get it conveniently? Can I get it quickly? Can I do it with less friction in the middle of it all, okay? What happens now, from your vantage point, as that millennial, and I'm going to give you two scenarios. You can get exactly what you want, how you want, your way right away, and no friction, or maybe a little bit of friction in there. Okay? Or you can still get it your way right away, and you get impeccable service on top of that.

Brett Branstetter (25:10): Right. Well, the second

John Anderson (25:12): way is going to cost you a few more bucks.

Brett Branstetter (25:14): Sure. Yeah. But, I mean, that's where this is all going anyways. And I mean, let's just say a year, who knows how long it's going to take. I mean, I think it could take less than that. But, I mean, I can share my screen, cuz we were talking about the CarMax ChatGPT integration, right? So, I started playing with it. And let me, here, I'll get my whole screen here.

John Anderson (25:33): And while he's doing that, what he's talking about, too, I would submit more convenience is customer service. If I'm making it more convenient, that is, in the truest sense of the form, customer service, right?

Brett Branstetter (25:45): Yeah. And so, what I did was I have ChatGPT open here, and I integrated the CarMax integration here. And I mean, this is exactly where things are leading. And now, I understand what we talked about earlier, right? CarMax and places like that have a huge resource of funds, technology, money that maybe independent dealers or smaller OEMs don't have. But, the point is that the dealers that are smaller operations can still do these things that CarMax is doing. The only difference is that CarMax is integrating directly with ChatGPT. You can optimize yourself to be the top listed thing with AEO, without having to integrate. But, for example, so if I'm purely the consumer, and I'm in ChatGPT, and I think another thing to keep in mind is people are gravitating to ChatGPT and to AI models instead of Google searching, because my ChatGPT knows me very well as a consumer, as an individual. It knows my preferences, it knows where I live, it knows the kind of things I like to do, the vacations I like to go on. So, I mean, that all sounds a little creepy, but like this thing, it knows me very well. So, when I ask it questions, I trust that it's objectively giving me the best thing that I can get for what I'm asking for. Um, and so I think that's a big difference between Google just listing you, "Oh, here's some dealerships in your area." I specifically told ChatGPT, "Listen, I need a new car. I'm in the Kansas City market. I'm looking for something under $40,000. Um, ideally a compact SUV. Uh, I'm open to leasing or buying. I just need, my most important thing is my monthly payment needs to be under $500." Cuz I think that's also a big shopping thing for people right now, is just monthly payment. Um, so, and I mean as you can see here, it's literally giving me CarMax listings one by one by one. And then underneath it, it's showing me exactly which ones they recommend with stock numbers and the CarMax location, and telling me why this would be the best thing for what I need it for. And then again, it's taking in my specific individual wants and needs that it understands already, and it's feeding me this. And what's even crazier is I can click this get started button and I can have this open here, and it's literally taking me directly to the CarMax website to book a test drive. I mean, talk about path of least resistance. I'm two clicks in and I'm booking a test drive.

Chris Keene (28:01): But I think the thing that stands out to me the most is you've used this word multiple times. You've used the word trust. You trust ChatGPT. You don't know CarMax. You've never, I say you've never bought a car from CarMax, but I'm assuming you've never. So, but you trust this ChatGPT, this AI. You trust it.

Brett Branstetter (28:33): But here's the thing. It is, um, whether we like it or not, AI technology is objective. It objectively knows that I am a 35-year-old male in Kansas City who's looking for an SUV under $40,000. What can I get him? What is the closest match to that? That's an objective fact. Whereas if I go walk into a dealership and I'm talking to a dealer, and again, I know this is just perception, but a lot of people don't trust car dealers. You know, unfortunately, that's just something they, you know, they think they're trying to squeeze money out of them. They're trying to, you know, bamboozle them into something that'll end up being a hassle in the future.

John Anderson (29:07): It's, but it's, we've been our own worst enemy for 50 plus years. So yeah.

Brett Branstetter (29:13): And that's all it really comes down to, is that I know that if I go to AI, it's giving me an objective answer that this is the best car in your area for your money. And especially when it's able to tap into things like Carfax, where I can literally see the exact car it's talking about with the exact price and the exact miles. And it's saying this is the car you're looking for, and it's removing all the friction, and I don't have to second-guess, hey, is this guy trying to sell me a lemon, or is this car really only worth 20,000 but I'm buying it for 30, or whatever. These are all objective facts. So yeah, the trust is there. Whether or not you like to trust technology, it comes down to just the fact that this is objective. You don't have a dealership that has a vehicle that they haven't been able to sell for over 100 days and they're trying to push that out on you saying that's your best option.

John Anderson (29:57): Right. Right. So, uh, earlier when we pulled this open, we looked at how it phrased it to you and it said, here's a sneaky option, right? It was even telling you, I think, what it was

Brett Branstetter (30:13): It's working for you. It makes it feel like it's on my side, right? It's like the AI is working for me. It's on my team.

John Anderson (30:18): Yeah. Yeah, it even phrased it that way, basically telling you, look, with everything that you're looking for, this thing with the equipment, the package, the way I read it is, I don't think the dealer even knows what they have here based on how they priced this with the options. Here's a sneaky option for you, right? So yeah. Interesting.

Chris Keene (30:40): I want to circle all this back, guys, because I don't want everybody to get lost in AI. The whole reason why we're bringing this up, just because you turn an AI tool on does not mean it's going to work properly. You have to have the proper GEO and AEO in place, so you can be that objective option for the consumer. Am I correct there, gentlemen?

Brett Branstetter (31:07): Absolutely. And I think the biggest thing to say though, too, is that, you know, as Chris said, we are not the most acknowledged people in the world of AEO and GEO. So I recommend, I mean, we're bringing this topic up in the sense of automotive, but I would highly recommend finding resources out there. It's not hard, guys. youtube.com, look up, "Hey, what's the best way to optimize for AEO, GEO?" You'll learn all about it, and it will be a quick lesson. And with a little bit put into this now, like I said, it will compound into huge growth in the future as this grows.

John Anderson (31:40): I also think the reason why we're bringing it up, Chris, is the reason why we had Brett join the podcast today. I mean, listen, dealers.

John Anderson (31:49): He's the consumer. Dealers, viewers, listeners, go back and replay what Brett just had to say over the last 20 minutes. I mean, don't take Chris and I, we're old car dogs. As Chris calls me, I'm the old curmudgeon, right?

Renaldo Leonard (32:03): And I'm only eight years behind you, John.

John Anderson (32:05): Yeah, you're not far behind me, bro. So, but ignore what Chris and I have had to say. Listen to Brett. Brett's had no experience at a car dealership whatsoever from the inner workings or the employee side. He's the consumer out there. And he's at an age that, dude, at his age and younger, this is how, whether you want to face it or not, whether you want to admit it or not. And here's the last thing I want to say. Do you know where I go 95% of the time to buy things? Amazon. And I had asked myself when Brett was talking, why do I do that? Cuz it's convenient. Look, could I go to the Walmart and find some things cheaper? I could. It's a 45-minute drive for me, so that's a little inconvenient. But convenience-wise, I can jump on there and I can have it sitting on my doorstep tomorrow morning. And I don't have to go in and fight, you know, thousands of people trying to run over me with their damn shopping cart cuz they want to try to get something quicker than I get to it, right? So, what he said.

Brett Branstetter (33:17): Go back and go, "Why would I sit at a dealership for 2 hours and listen to a guy try to sell me something when I can just do the research on my own with AI in 5 seconds?"

Chris Keene (33:26): That right there, viewers, listeners, listen to what he just said. Why would I go sit at a dealership for three, four, five hours and argue with somebody when I don't have to argue with an objective resource that I trust, that is only going to show me what I want? If that doesn't wake you up, with he is part of the generation that by the second is becoming the mass of generation that is feeding your dealership, I don't know what else does. I don't know what else to tell you.

John Anderson (34:08): Good way to close it out right there, man. There's not a whole lot more needs to be said, brother. Yes, sir.

Chris Keene (34:14): So, Brett, thank you, because for the viewers and listeners over the last several weeks that have caught now three episodes of Lot Talk, this whole subject was birthed by Brett. Not by me, not by Naldo, not by John. By Brett. It's important, the one who brought this to the table. And listeners and viewers, we implore you. Find your resources. I'm working on a resource right now as we speak. And hopefully next week we can have them on as a guest. But I'm working on a resource right now to help give even more insight from somebody who is a professional with this. That is what they do. So please stay tuned in. Please like. Please share. Please rewatch. Please give reviews. Give your feedback on episodes like this one right here. Because Lot Talk powered by Lot Pop is coming out here for one reason and one reason only. To give back to you guys the things that we're discovering, that we are finding, that we are hearing, that we are seeing, that just can help you get incrementally better each and every day. Some of the things you may take from us, you may look at this and go, "Holy cow, this isn't incremental. This is huge." And that's great, too. But we want to continue to give back like this. All we ask for in return is please like, share, comment, send us feedback, and very important, give us a review on Apple. We appreciate that a ton. We are out of time, folks. But we thank you. Brett, thank you for coming from behind the curtain and being, you know, the Wizard of Oz, the man who keeps all this show together. We thank you for that. So, on behalf of Mr. Brett Branstetter, Mr. John Anderson, Mr. Ronaldo Leonard, I'm Chris Keene. We thank you for tuning in again. And we will catch you on the next episode of Lot Talk powered by Lot Pop. Much success, folks.

Your hosts

John Anderson, Co-Host of LotTalk and CXO of Lotpop Inc.
John Anderson
CXO, Lotpop Inc.
Renaldo Leonard, Co-Host of LotTalk and Director of Training & Performance at Lotpop Inc.
Renaldo Leonard
Director of Training & Performance
Chris Keene, Co-Host of LotTalk and CRO of Lotpop Inc.
Chris Keene
CRO, Lotpop Inc.

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Frequently Asked Questions

Quick answers to the questions dealers ask most about the CarMax ChatGPT integration and AI car shopping.

What does the CarMax ChatGPT integration do?

It lets shoppers have a conversational car shopping experience inside ChatGPT: browsing CarMax's nationwide inventory of more than 45,000 vehicles, getting recommendations matched to their stated budget and needs with stock numbers and locations, and receiving instant offers on trade-ins. From the chat, a shopper can click through to the CarMax site and book a test drive in about two clicks.

Is the CarMax ChatGPT integration a game changer or years away?

On the episode, the crew sided with Frank Knox's take: game changer, yes; years away, no. The capability will be enhanced over months, not years. The millennial and Gen Z buyers funding dealerships for the next several decades already use AI daily, so the shift is impacting today's market, not some future one.

How can a smaller dealership compete with CarMax's AI integration?

You do not need to integrate with ChatGPT to compete. With answer engine optimization (AEO), a dealership of any size can structure its content so AI tools recommend it when shoppers in its market ask where to buy. As the crew put it, just turning an AI tool on is not enough; you need proper AEO and GEO in place to be the option the consumer's AI surfaces.

Why do car shoppers trust AI recommendations more than dealers?

Because the recommendation feels objective. As Lotpop's Brett Branstetter explained from the consumer's seat, the AI knows the shopper's location, budget, and needs and matches the closest fit, with no incentive to push a 100-day-old unit. It even flagged one listing as a sneaky option that looked underpriced for its equipment, which makes the shopper feel the AI is on their team.

How do I find out if my dealership shows up in AI search results?

Run the test Renaldo ran on the episode: ask ChatGPT or Gemini a real shopper question for your market, such as financing options on a model you stock plus your city. In his Colorado test, four large established dealerships, two of them publicly traded, did not appear at all. If your store is missing from the answer, that is your AEO gap to close.

When do new LotTalk episodes come out?

As announced on this episode, LotTalk now releases an audio episode every Tuesday at 4:30 a.m. Central, a second audio episode every Wednesday at 4:30 a.m. Central, and the full hour-long video segment on YouTube and Spotify every Wednesday at 1 p.m. Central.