Cars.com Launches Powerful New Solutions, Helping Dealers Turn Smarter Technology into Real Profit
Rhea-AI Summary
Cars.com (NYSE: CARS) on Jan. 29, 2026 announced new AI and commerce solutions for dealers to drive growth and profitability. Key highlights include an AI video solution delivering a 2X website lead conversion lift, Market Area Expansion driving large SRP/VDP exposure, integrated wholesale tools, and consolidated reporting.
The company will showcase offerings at NADA Feb. 4-6 in Las Vegas, booth #3723W.
Positive
- AI video delivers a 2X website lead conversion lift versus traditional creative
- Market Area Expansion accounted for 34% of dealers' SRP views during pilot
- Market Area Expansion accounted for 25% of dealers' VDP views during pilot
- Over 50% of AccuTrade-acquired vehicles are 1–5 years old, improving access to late-model inventory
- Consolidated reporting via Cars Commerce Hub offers cross-platform admin and product performance insights
Negative
- AI-powered VIN-specific video is limited to new and CPO vehicles only for now
- Performance claims rely on pilot and internal data from limited test groups (Q2–Q4 2025)
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves (e.g., FVRR +1.55%, EVER -2.36%, GRPN -2.21%), and no peers are in the momentum scanner, suggesting this AI/tech launch is company-specific rather than part of a sector-wide swing.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 23 | Inducement equity grants | Neutral | -1.9% | CEO-designate received PSUs and RSUs under 2025 Inducement Equity Plan. |
| Dec 18 | CEO succession | Positive | +0.9% | Company named Tobias Hartmann as next CEO, succeeding Alex Vetter. |
| Dec 04 | CTO appointment | Positive | -2.0% | Cormac Twomey appointed CTO to lead innovation and AI initiatives. |
| Nov 20 | AI survey results | Positive | -1.3% | Survey highlighted growing AI use in car shopping and Carson engagement. |
| Nov 06 | AI engine launch | Positive | +6.5% | Launch of Carson™ AI engine with stronger engagement and lead metrics. |
AI and leadership news have produced mixed reactions: the Carson™ launch saw a notable gain, while other positive tech and survey updates often coincided with modest declines.
Over the last few months, Cars.com (Cars Commerce) has focused on leadership transition and AI-driven innovation. Announcements included CEO succession to Tobias Hartmann and new CTO Cormac Twomey, alongside AI initiatives like the Carson™ engine and AI-focused consumer surveys. The Carson™ launch on Nov 6, 2025 coincided with a 6.53% gain, while other positive news, such as AI survey results and executive appointments, saw small declines. Today’s AI-powered dealer solutions extend this ongoing pivot toward data and automation for retail and wholesale partners.
Market Pulse Summary
This announcement expands Cars.com’s AI-driven offerings with VIN-specific video ads, Market Area Expansion shipping tools, integrated wholesale options, and a consolidated reporting hub. It builds on earlier AI initiatives like Carson™ and recent leadership changes, aiming to deepen value for dealers. Historical filings highlight ongoing capital returns and acquisitions, so investors may watch how these solutions affect revenue, dealer metrics, and profitability relative to past quarters with $181.6 million in Q3 revenue.
Key Terms
ai-powered technical
single sign-on technical
AI-generated analysis. Not financial advice.
Leading Automotive Marketplace Unveils New Tech to Better Enable its Dealer Partners in 2026
With strong marketplace traffic growth in 2025 and exciting announcements such as its new AI search assistant, Carson™, Cars.com is leveraging its proprietary consumer demand and inventory data to power a new AI video solution, unlock vehicle shipping and delivery options, and enable customers with new integrated wholesale options to quickly move aging inventory. The company is also unveiling its new consolidated reporting platform to better inform dealers with the insights needed to operate efficiently.
"We are not just driving traffic; we are driving profit for our dealer partners," said Lisa Gosselin, Chief Commercial Officer for Cars.com Inc. "By putting AI-powered technology and market expansion tools in the hands of our customers, Cars.com is connecting highly-engaged shoppers with the right inventory, driving twice the lead conversion, and ensuring our partners grow faster and more profitably."
Highlights of the new Cars.com solutions include:
- AI-Powered Inventory Video: New AI-powered creative allows dealers to scale their in-market video capabilities beyond incentive and brand spots to VIN-specific video ads for their full inventory. Backed by powerful audience targeting based on Cars.com car shopping behavior, the new AI-video solution is driving a 2X lift in website lead conversion for dealers versus traditional video creative.¹ Paired with newly activated attribution capabilities that can connect both dealer lot visits and actual sales results to shoppers exposed to these video campaigns, Cars.com can now provide a full-funnel view of results from ad exposure to car purchase. This includes new and CPO vehicles only for now.
- Market Area Expansion: According to a recent Cars.com survey, more than
80% of recent car buyers are willing to buy outside their market, and53% have done it before.² Market Area Expansion is a new onsite solution that enables dealers to showcase their inventory beyond their local market and promote vehicle shipping and delivery capabilities to shoppers. The tool boosts the number of vehicle options for consumers while connecting dealers with shoppers they would have otherwise never reached. During Cars.com's pilot of the new product,34% of dealers' total Search Result Page (SRP) views and25% of their total Vehicle Details Page (VDP) views came from Market Area Expansion placements, highlighting the massive exposure lift dealers gain with shipping capabilities.³ - Integrated Wholesale Tools: Cars.com continues to scale its appraisal and wholesale capabilities through deeper integrations with Cars Commerce solutions AccuTrade and DealerClub, helping dealers address used car scarcity, source attractive, late model inventory, and choose the most profitable exit strategy for each vehicle. Importantly, over
50% of vehicles acquired via AccuTrade are between one and five years old, highlighting the desirable pool of in-demand, late model inventory that dealers access when they expand beyond traditional physical auctions.⁴ Now DealerClub seamlessly integrates with each dealer's inventory on Cars.com to quickly and easily move aging units to a network of trusted wholesale buyers. The integration is a win-win: DealerClub sellers keep inventory moving and control the offer and negotiation process, while DealerClub buyers gain access to high quality, retail-ready units on a differentiated wholesale auction based on transparency and reputation. - Cars Commerce Hub Reporting: The Hub is a new single sign-on reporting platform that offers admin tools and product performance insights from across the Cars Commerce suite of solutions, all in one consolidated tool. The new reporting platform also features enhanced Cars.com reporting, delivering additional market signals and ensuring customers have cross-platform insights to make informed decisions.
To learn more about Cars.com's new technology, visit the Cars Commerce booth #3723W at the NADA Conference. Offerings from AccuTrade, Dealer Inspire and DealerClub will also be on display. Visitors can participate in the DealerClub Live No-Reserve Auction in the booth on Feb. 4 from 1-5 p.m. and the DealerClub Pricing Game on Feb. 5 from 1-5 p.m. local time. For more information, visit www.carscommerce.inc.
¹ Cars Commerce Pilot Results for VIN specific video creative in IMV campaigns with limited test group Q2-Q3 2025
² Cars Commerce Consumer Survey of Recent Car Buyers, Oct 2025, N=259
³ Market Area Expansion on Cars.com Pilot Results, Q4 2025
⁴ Internal AccuTrade data, Q3 2025
ABOUT CARS.COM®
Cars.com is the No. 1 most recognized automotive marketplace. Launched in 1998 and headquartered in
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SOURCE Cars.com Inc.
FAQ
What is Cars.com's new AI video solution (CARS) announced Jan. 29, 2026?
How much lead conversion lift did Cars.com's AI video show for dealers?
What does Market Area Expansion on Cars.com (CARS) do for dealers?
How do Cars.com's integrated wholesale tools (AccuTrade, DealerClub) help dealers?
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