Used car retailer Motorpoint has reported a sharp rise in profits after adopting artificial intelligence to support its online sales. The London-listed company said it has sold hundreds of cars through its new AI-driven dealership, which has become a key part of its digital sales strategy.
CEO Mark Carpenter said the technology, known internally as Lily, has helped the company continue conversations with potential buyers in a way human agents often can’t.
“We’ve sold about 350 vehicles with the AI agent since we introduced it,” Carpenter said. “Our sales agents keep asking who Lilly is, because Lilly is the name of the online dealer that sold the car. The main purpose is to move customers further through the buying journey – so when they need to interact with our team, we can answer questions faster and make the process more satisfying.”
Motorpoint said its AI-driven, data-driven approach to vehicle sourcing and customer engagement is now an integral part of its operations. This strategy contributed to an 80 per cent increase in profits to £2.7 million for the six months to the end of September, along with a 15 per cent increase in sales to £647.7 million.
The strong performance underscores how digital transformation is reshaping the UK motor retail market, with Motorpoint using technology to simplify the car buying experience and boost efficiency at a time when consumer confidence remains fragile.
However, Carpenter has joined a growing list of UK chief executives who have warned that economic uncertainty surrounding next month’s Autumn Budget could dampen consumer sentiment as the festive trading period approaches.
Treasury sources have floated a series of potential tax changes – including rises in income tax, National Insurance, bank duties, vehicle duty and property taxes – ahead of Chancellor Rachel Reeves’ Budget on 26 November. The Chancellor is expected to increase taxes by at least £30bn to address the widening fiscal gap.
“Making various tax changes, whether leaky or speculative, is largely unhelpful when clients begin to doubt their disposable income,” Carpenter said. “Uncertainty is always the worst thing in business. Any leader prefers a stable, known environment – and with this year’s budget arriving a month later than usual, it’s even more difficult for seasonal retailers heading into Christmas when people aren’t sure how much they have to spend.”
Motorpoint, which specializes in virtually all new cars, has invested heavily in digital tools and automation to remain competitive amid tight profit margins and volatile consumer demand. The company said it will continue to expand its AI-based operations to deliver faster responses, smarter pricing and a more personalized customer experience.
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