As the end of 2025 is approaching, economic uncertainty, evolving consumer expectations and the long tail of recent tariffs are creating pressure across the auto industry – but for dealerships that get ahead of 2026’s biggest trends, there’s opportunity in the disruption.
So what should smart dealers be watching in 2026? Here are five industry trends reshaping profitability strategies in the year ahead.
1. Tariffs Are Creating Uncertainty but GPOs Offer Stability
While some of the tariff impacts from China, Mexico and Canada have yet to fully reach the dealership level, we’re already seeing cost ripple effects across common products, such as metal parts, shop supplies and custom-branded promotional materials.
The good news? Group Purchasing Organization (GPO) members, such as dealerships that utilize GPO savings through FLADCO, aren’t experiencing price increases. Thanks to long-standing vendor relationships, bulk purchasing power and fighting back against price gouging, GPOs have continued to shield our network from price hikes—even on high-volume items like plate frames.
Real Talk: Some plate frame or auto shop suppliershave raised pricing due to tariff implications, but FLADCO’s contracts remain locked in. We’ve fought hard to keep prices low for our customers. This is one small example of how GPO membership makes a measurable impact.
Want to dive deeper into the tariff landscape for dealerships? We update our tariff implications blog monthly. Be sure to check it out.
2. AI Is No Longer Optional for Dealerships – It’s a Must-Have
Artificial intelligence isn’t just reshaping tech giants – it’s fundamentally changing how dealerships operate. From service scheduling to lead response and warranty processing, AI is helping teams accomplish more with less by automating routine tasks and surfacing actionable insights in real-time.
For dealership leaders focused on both cost control and customer experience, AI is becoming a vital tool. It’s being used to:
- Monitor and analyze phone calls for better lead management
- Help dealerships process OEM warranty claims more efficiently and for more profit
- Predict inventory needs based on historical trends
- Personalize marketing outreach using behavioral data
Instead of replacing teams, AI is helping augment staff capacity, reduce human error and improve response time–especially in areas like fixed ops and BDCs where efficiency and follow-up are key.
Industry Snapshot: In a recent demo from an automotive communications provider (Callrevu), AI tools were shown to help recapture missed leads, turning potential losses into scheduled appointments and stronger close rates.
As technology matures, more dealers are viewing AI not as a shiny add-on but as a core part of their operational strategy.
In 2026, integrating AI isn’t a nice-to-have – it’s how forward-thinking dealerships stay competitive.
3. Operations Teams Are Under Pressure to Do More with Less
In 2026, running lean will be the reality.
Labor shortages and high turnover continue to challenge dealership fixed operations, particularly in the service department. As teams strive to maintain performance with fewer personnel on deck, time-consuming manual processes are becoming increasingly difficult to justify.
Rekeying data, tracking down repair orders and manually submitting claims are tasks that not only consume staff time but also introduce avoidable errors and delay payments. In today’s environment, these inefficiencies are a drag on profits and productivity.
That’s why many dealerships are reassessing their workflows and turning to automation to streamline the most repetitive parts of the job. From faster RO closeouts to more accurate submissions, modern tools are helping ops teams refocus their time on what matters most: serving customers and hitting performance targets.
Why It Matters: Reducing administrative friction doesn’t just boost margins—it also supports staff retention by freeing employees from the burnout of busywork.
Dealerships that optimize for efficiency now will be better equipped to weather ongoing labor constraints—and stay one step ahead of rising operational costs.
4. Small Cost Savings Add Up—But Big Wins Matter Too
In a dealership’s annual P&L, it’s often the accumulation of small savings—on things like uniforms, toner or branded items—that quietly boosts the bottom line.
But the most forward-looking operators don’t stop there.
They look for opportunities to pair these micro-efficiencies with bigger structural changes that can significantly improve profitability.
Examples include modernizing phone systems, automating warranty claims or identifying hidden costs in service partnerships. When small operational gains are layered with large-scale efficiencies, the impact becomes exponential.
“We’ve got a lot of ways to save a dollar that can add up to a million—but we also have a few ways to get to that million faster. Both approaches matter.” — Ian Gamberg, FLADCO
Industry Insight: Cost-consciousness in 2026 isn’t just about trimming the fat—it’s about creating smarter, leaner systems that scale with your growth.
Both incremental savings and transformative wins are critical to staying competitive in today’s economy. And that’s exactly where the group purchasing model shines.
5. GPO Membership Remains a Strategic Advantage
In a year marked by economic unpredictability, more dealerships are turning to group purchasing organizations (GPOs) to gain cost stability, negotiate better rates and simplify vendor relationships.
By pooling purchasing power across a network of like-minded businesses, GPOs create leverage that individual dealerships often can’t achieve on their own. This collective strength helps members weather inflation, tariff volatility and supply chain disruptions with greater confidence.
More importantly, GPOs don’t just offer better prices. They bring vetted partnerships, centralized billing and trusted support teams that help dealerships operate more efficiently.
Pro Tip: As the cost of doing business rises, GPOs remain one of the most powerful tools for driving savings and maintaining operational control.
In short, dealerships that leverage GPO resources are positioning themselves for a more resilient and cost-effective 2026.
That’s why dealerships are increasingly turning to FLADCO for support.
The Bottom Line for Bucking the Trends: Smart Planning Now Pays Off Later
The dealerships that will thrive in 2026 are already planning today.
By adopting automation tools, locking in GPO pricing and looking for ways to reduce manual processes, you’re not just saving money. You’re building a dealership that’s stronger, faster and more resilient than the competition. And FLADCO has everything under one roof to help your dealership succeed in this shifting environment.
Want to see what you could be saving?
Get ahead of 2026 – Schedule a call with a FLADCO representative to discuss your dealership’s current position and identify areas for improvement.
Or join Dealer One Stop for free today to browse our products and see what you could be saving on.
We’re here to support your ROI and bottom line in the year to come and beyond.
This blog was originally posted on Dealer One Stop’s blog – you can find the original post here.
