RET1 is a company that provides tools for dealerships to sell cars online. Their Fusion offering is described as helping customers figure out financing and trade-ins faster, and see add-on protection options.
Digital retailing means buying a car through online tools instead of doing everything in person. It can let you estimate payments, trade in your current car, and choose add-ons before you ever step into the dealership.
An AI vision system is basically a car’s “eyes” powered by software. It looks at what’s around the vehicle, tries to understand what it means, and helps anticipate what could happen next.
Boston Consulting Group is a big business consulting company. Here, they’re being used as a source for the idea that car companies may be chasing the wrong customer trends.
This part of the show is about a scam where fake dealership websites trick people into paying money. It explains the damage it causes and why dealerships need protection.
These scams copy a dealership’s website so it looks real. People may pay money online (like a wire transfer) and then never get the car because the site was fake.
Wolven City is Toyota’s test location near Mount Fuji. It’s where they can try out new driving technology in a controlled environment before bringing it to real cars.
Driver assist features are safety helpers that can warn you or take over small parts of driving. Here, Toyota is saying its AI “seeing” system will be used to make those helpers smarter.
Tariffs are extra taxes on imported products. If the rules change, it can make imported cars or parts cost more, which forces automakers to adjust their plans and prices.
A write-down is basically a financial admission that something you invested in is worth less than you hoped. It shows up on the company’s books when future results look worse than expected.
They’re talking about how companies invested a lot in electric cars, but it hasn’t always worked out financially yet. When sales or costs don’t match expectations, companies have to take big accounting losses.
It means finding a market niche that other companies aren’t really targeting yet. If you get there first, customers may stick with you because there’s less competition.
This means Tesla wants most of its cars to be able to drive themselves. The idea is that human driving becomes optional or unnecessary most of the time.
Tesla is saying its Roadster will be the one car you can still drive yourself for the long term. The rest of the lineup is expected to move toward self-driving.
They’re talking about Tesla’s self-driving taxi concept, the CyberCab. It’s meant to be a compact vehicle that can run trips with little to no human driving.
Autonomy means the car can drive itself. In this discussion, Tesla is treating self-driving as the main goal, so the vehicle design changes to fit that idea.
Thrusters are like small rocket engines that push something forward. Mentioning SpaceX thrusters suggests the Roadster could get propulsion technology that’s more like a spacecraft than a normal car.
An earnings call is a meeting where a company talks about its recent financial performance and what it plans to do next. In this segment, they’re saying the autonomy/cyber cab/robotaxi news came from Tesla’s investor update.
Hardware 3 is the computer and sensor setup Tesla put in some older cars. It determines how capable the car can be for self-driving features. The big takeaway here is that Tesla says Hardware 3 won’t reach the same autonomy level as newer hardware.
“Hardware 4” is Tesla’s newer autonomy hardware package that includes updated cameras/computing intended to enable higher levels of autonomous driving. The segment suggests Tesla would offer a path to upgrade from Hardware 3 to Hardware 4, but likely only for certain customers. This is central to understanding how Tesla’s autonomy roadmap affects real owners.
A retrofit means upgrading an older car after you already bought it. In this case, it’s about adding newer self-driving hardware to an older Tesla. The key point is that it may not be available to everyone.
This is the paid Tesla option that’s supposed to enable more advanced self-driving features. The segment suggests only some owners who paid for it may qualify for hardware upgrades. It also shows why people feel misled when promises change.
Company
Point Predictives
Point Predictives is the company connected to the guest who’s talking about scam prevention for dealerships. The topic is about protecting customers from fake websites. It’s more about dealer operations than car technology.
Trade and valuation is when a dealer tool estimates what your current car is worth. Doing it early helps you understand what you might get for your trade and what the payment could look like.
A “digital retail experience” is the online process dealerships use to research, value trades, schedule appointments, and discuss financing before the customer ever arrives. The segment positions these tools as improving lead quality and speeding up decisions.
Route 1 Fusion is software dealers use to help sell cars online. It can estimate your trade-in value, help you book a time, and speed up the steps that lead to a dealership visit.
Prequalification tools help figure out what kind of financing you might qualify for before you fully apply. It can give you a clearer idea of possible payment options earlier in the process.
The fake websites can be used for more than just cars. They may also pretend to sell tractors or heavy equipment, using fake listings to lure people in.
Muscle cars are the kind of popular, powerful cars people often buy as collectibles. Scammers target them because buyers may be looking online and paying for shipping.
Wire transfers are a common payment method in scams because they’re difficult to reverse once sent. The transcript notes victims wire money for shipping, but the cars never arrive, leading to large losses.
The scam often asks you to pay first for shipping. If someone demands money upfront to a suspicious site or person and won’t provide verifiable details, it’s likely a scam.
Scammers can use AI to make fake websites that look real, with photos, reviews, and videos. They can spin these sites up fast and disappear before anyone can verify them.
A reputational hit means a business’s reputation gets damaged. Even if the scam isn’t the dealership’s fault, angry customers can still post complaints that make the dealership look bad.
Wire transfer is a direct bank-to-bank payment method that can be difficult to reverse once sent. Scammers often push victims toward large upfront wire payments to quickly move money before anyone can verify the deal.
Legal risk means a business could get dragged into a lawsuit. Even if the dealership didn’t run the scam, angry victims may still try to hold them responsible.
Google reviews are public comments people leave online about a business. If scammers trick customers, those customers may leave bad reviews that hurt the dealership’s reputation.
This is when scammers copy a real dealership so they look legit. Then they trick you into paying for a car or deposit, and you don’t get what you were promised.
Scammers may promise you can return the car within 14 days and get your money back. The catch is that it’s usually not real or not enforceable once you’ve paid.
Concept
trust kit
A “trust kit” sounds like extra proof to help you feel safe. In scam setups, it’s often just a bundle of fake-looking documents or photos meant to convince you.
VIN stands for Vehicle Identification Number, like a car’s fingerprint. A VIN report looks up that fingerprint in databases to confirm the car’s history and status.
A “salvaged” car is one that an insurance company wrote off as a total loss. Even if it’s repaired, it can have a different history that matters for safety and resale.
A mechanical warranty is supposed to help pay for repairs if something breaks soon after you buy the car. Scammers may advertise a 30-day warranty to make the deal seem safer than it really is.
Deepfake images are AI-generated or AI-altered photos designed to look authentic. In car scams, they’re used to show a vehicle that doesn’t match the listing or to disguise damage/history, making the ad appear more credible than it is.
Contacting the website administrators is a direct way to request removal of an impersonation or spoofed listing. This can speed up takedowns compared with waiting for government action, especially when scams are actively recruiting buyers.
The advice is: make sure your dealership has a real website or at least a real online listing. That way, customers have a trustworthy place to verify contact info, and scammers have a harder time pretending to be you.
Scammers can make a fake website that looks like the real dealership’s site. Then they send (reroute) customers to the scam page, so the customer thinks they’re contacting the dealership but they aren’t.
Cox Automotive is a company that provides tools and information to car dealers. Here, they’re sharing insights on how dealership service and customer behavior are changing.
“Fixed ops” (fixed operations) revenue refers to dealership income from ongoing service and parts—things like maintenance, repairs, and accessories—rather than new-vehicle sales. The segment suggests that customers are servicing less than expected around the two-year mark, which can pressure this revenue stream.
They’re talking about a timing pattern: after about two years, people usually start needing more service. But the podcast says fewer customers are showing up then, which can hurt dealers and may mean cars aren’t getting maintained as regularly.
LIVE
Consider RET1 Fusion for your dealership's digital retailing.
Customers can build vehicle financing options online with estimated payments,
trade-ins, and you can even showcase optional protection products.
Faster process, elevated sales, more satisfied customers.
Visit RET1.com slash Fusion to connect for a demo today.
Welcome to Daily Drive for Thursday, April 23rd, 2026.
I'm Kellan Walker in Las Vegas today on the show.
Toyota shows off its new AI vision system as it tries to catch up with China.
Auto makers are chasing the wrong segments, says Boston Consulting Group.
And Tesla says the Roadster will be its only human-driven car long-term.
Plus, Frank McKenna of Point Predictive talks about protecting your dealership
from AI-powered website cloning scams.
Some of these dealerships that have been hit with this scam
have experienced consumers walking into the dealership demanding,
where's my car? I wire transferred you $40,000 and I never got it.
Let's run through all the news you need to know to keep up in the auto industry.
Toyota is showing off a new artificial intelligence system at Wolven City,
their experimental testing ground near Mount Fuji.
The AI vision engine works like this.
Cameras and sensors capture what's happening around them.
Then the system uses AI to figure out what it all means, spotting potential dangers,
and predicting what happens next.
Toyota wants to build this into their driver assist features.
Here's why it matters.
Chinese automakers have jumped way ahead in AI-powered cars.
Toyota and other legacy automakers are scrambling to close that gap.
Automakers are having a harder time figuring out what to build.
Federal policies keep changing, tariffs shake up the math on imports,
and bets on electric vehicles haven't always paid off, leading to billions in write downs.
Boston Consulting Group says there's a smarter play.
Stop crowding into the same segments everyone else is chasing,
like large pickups and mass market EVs.
Instead, find the gaps.
The so-called white spaces, where you can be first and face fewer rivals.
Managing director Eric Jesse puts it simply,
get there first and customers stick with you, show up late, and you're just another option.
You can hear an interview with Jesse on the upcoming episode of the Automotive News Shift Podcast.
And Tesla is moving toward a fully autonomous lineup with one exception.
CEO Elon Musk says the second-generation Roadster will be its only manually driven car long-term.
Musk said on the automakers' earnings call on Wednesday
that the CyberCab Robotaxi has started production, and is Tesla's promised compact car.
Here to talk more about it is our own Lawrence Iliff,
who covers Tesla and other EV makers for us at Automotive News.
Lonnie, welcome back to Daily Drive.
Great to be here.
All right, Lonnie.
What's the thinking here?
Why make the Roadster Tesla's only human-driven car?
Well, you know, Elon Musk has always said we don't make slow cars,
and the whole point of Tesla was to make fun, fast, sexy electric cars,
and that was going to make people buy them, and that's exactly what happened.
And so that's always been part of the DNA.
The first Roadster, if you remember, was their first car back in 2008,
and it was, you know, to sell the brand.
It's this kind of fun, funky thing, and all the people from LA,
and all the famous people, and all the tech guys bought them.
Now, you know, we're going through a different phase with Elon Musk,
where it's all about autonomy.
It's all about scaling.
It's all about, you know, many, many millions of robotaxies,
and so he says he's going to move the whole line up to autonomy, right?
So, you know, the new cyber cab, which is in production,
will be a robotaxie either later this year or next year.
It does not have a steering wheel.
It does not have pedals.
It does not have all-wheel drive.
It does not have a powerful motor, and so this is the new direction.
And with the new Roadster, he's basically saying it's kind of a last hurrah.
They first showed it in 2017, and they've been delaying it, delaying it, delaying it.
They've been saying it may fly with thrusters from SpaceX.
Elon Musk said on Joe Rogan last year that it might be a flying car,
and he's promising this like crazy demo as early as May,
which makes me think like June, July, August.
Now, this news comes out of Tesla's latest earnings call.
What were your other big takeaways?
Yeah, it was also interesting that, you know, Elon Musk finally confirmed that older cars,
cars built before 2023, which is not that old, that have a certain hardware package called
Hardware 3 will not be able to be autonomous, and that's kind of wild because he's been
promising for 10 years. Every Tesla built will be autonomous, right?
He said that over and over again, and so now millions of people who bought the cars
who maybe thought they were becoming autonomous, you know, maybe they didn't.
It's probably, you know, less than millions of people who are dying to have an autonomous car,
but he said they would, and so now he's saying that people with the Hardware 3 package,
the older package of cameras and computer, will be able to get some kind of a bonus
if they trade in to the newer cars, which have the Hardware 4 package, or he even suggested
that Tesla would set up micro factories in regional parts of the United States,
and people would come in and get their Hardware 3 cars retrofitted to Hardware 4 cars,
but it may not be everybody, it may only be people who bought the full self-driving software,
which cost anywhere from $8,000 to $15,000, so it's kind of a mess, you know,
because that promise was made and now they can't keep it.
Interesting stuff. Lonnie, thank you so much for joining me.
Okay, great to be here.
And those are today's headlines. You can find more details on all those stories at AutoNews.com.
Coming up, Point Predictives Frank McKenna talks about how dealerships can protect themselves
from AI-powered website cloning scams. That's next on Daily Drive.
Route 1 Fusion is an expanded digital retail solution built to enhance your dealership's
customer engagement and improve the results of your online efforts. Many customers expect a
fast online friendly experience and prefer clarity early in the process, especially if they have a
vehicle to trade. So ask yourself, are your current digital retailing tools helping shoppers
understand their trade and value and helping your team move deals forward faster?
With a subscription to Fusion, you can benefit from its trade and valuation feature that empowers
customers to estimate the value of their current vehicle early in the process. This helps customers
arrive in store, better prepared, make expectations around payments and equity more realistic,
and move conversations and decisions faster. The result is higher quality leads,
more productive interactions, and a smoother transition from online to in-store. And trade
and valuation is just one example of how Route 1 Fusion can expand your digital retail experience.
Fusion also supports other features that include appointment scheduling so customers can view
your availability and book a time. Prequalification tools with subscription provide quick,
credit-based payment options and production product presentations allow you to present
products earlier to help customers explore their options. Schedule a personalized demo to see how
Fusion can help generate more opportunities from your online traffic. Visit route1.com
slash fusion to connect with Route 1 today. Welcome back to Daily Drive. I'm Kellen Walker.
Scammers are using artificial intelligence to clone dealership websites, and it's getting
harder to spot the fakes. These fraudulent sites can damage a dealership's reputation
and cost customers money. Frank McKenna is chief strategist at Point Predictive,
an anti-fraud technology company. He spoke with automotive news retail reporter Paige Hodder
about how these AI cloning scams work and what dealerships can do to protect themselves.
Today I'm really interested in this new type of scam that you recently put a report out about,
which is these fake dealership websites. Your report goes into a lot of detail,
but can you give me kind of an overview of how this works?
Yeah, what this new scam is, I think it's kind of a harbinger of things to come.
This is the use of artificial intelligence to essentially
defake car dealerships online. What they'll do is they'll prop up websites that are meant to look
like real car dealerships or real tractor sites or heavy machinery sites that are filled with
fake listings for really nice cars or tractor equipment or heavy machinery priced at prices
that are just too good to be true. When consumers come upon these sites online, they're convinced
that the cars and the tractors or the muscle cars are actually real and they're convinced to
send wire transfers to scammers who are based in Russia and other countries with the promise that
they're going to get these cars a ship to them, but the cars never arrive and they're typically
out anywhere from $50,000 to $100,000 that they wire transferred to scammers. It's a new trend
that started to really erupt last year and we're seeing a lot more activity now from this.
So why do you think dealerships and heavy machinery is this category of website they're
creating? I think they're targeting this category of websites because it's not unusual for consumers
to get muscle cars or luxury cars or tractor equipment or heavy machinery shipped to them
online. It's not something you may go down the street and just go to any dealership. You're
in your area. So consumers are quite used to shopping for these types of cars and machinery
online and they're big ticket items. So from a scammers perspective, they can prop up one of
these AI websites and it's realistic to think that as a consumer you'd have to prepay to get
that car shipped to you. That's why I think that the industry being targeted is because it's quite
normal for this activity to occur. Yeah, so how sophisticated are these websites and how much
work does it take to put one together? Websites are fairly sophisticated in the way they look
and they're sophisticated because they're all created with artificial intelligence
based upon templates that the fraudsters and scammers have created. So when you look at the
website, it's going to look like a great front page. They're going to have all sorts of listings.
They're going to even have customer reviews. They're going to have video testimonials about
how great the experience was. They're going to have pictures of the staff, lots of pictures
of the car. So it's going to look very sophisticated and real, but behind the scenes these websites
are spun up in literally minutes by these scammers who have all the AI technology to make it happen.
So we've seen these websites come online and go offline in a matter of minutes,
hours or days. So it's quite alarming how fast it's growing and how easy it is for them to do this.
So that's another thing you highlighted in the report was these video testimonials and photos
also created using AI. So can you tell me a bit more about those?
Yeah, so what the scammers realize is that for someone to believe that they're really buying a
car, that's going to be much more believable if they see other people that have gone through
the same process and have been successful with it. So they're actually going out and using AI imagery
of people and they're doing full videos where these people are talking about how great the
experience was, how quickly the car arrived, how in great condition it was, and how great the
customer service was. So these are actually non-existent people that have never bought a car
and they are just propping up these AI scammers' ruse against consumers. So these AI defects are
highly realistic. I've seen them and I would be fooled if I didn't know it was a scam myself.
So it's clear how this impacts consumers, you know, in some cases they're out thousands and
thousands of dollars. But what does this mean for dealerships?
What it means for dealerships is it's quite a reputational hit and I'll give you some examples.
Some of these dealerships that have been hit with this scam have experienced consumers walking
into the dealership demanding, where's my car? I mailed you, you know, I wire transferred you
$40,000 and I never got it. So they're going to the dealerships extremely angry that they haven't
received what they paid for. In some cases they're threatening to sue the dealerships.
In other cases these consumers who have been scammed are going on to yell and google and posting
very negative reviews which is hurting the dealer's reputation online. So it's a lot of reputational
risk and even some legal risks to these dealerships because these consumers are very angry and taking
it out on the real dealership when it's actually a scammer who's operating overseas that's doing
all these scams. You know, this reputational risk, can that translate to law sales? You know,
I mean we've all seen Facebook posts and stuff go viral even if it's just like viral in your
hometown. Like I'm sure these things can get a lot of traction. Yeah, for sure. I mean if you read
some of these google reviews these people talk about how much money they've lost and how it's
a big scam and as a consumer when you're looking to buy or make a big purchase you'll often go to
google reviews and make sure that you're not going to get scammed. This could definitely lead to
law sales for these dealerships if they're being cloned and if consumers are losing money. It's
certainly hurt their business. And I'm sure it doesn't help that some people already feel
quite distrustworthy of car dealerships. That's right. It's one of those things. There's a lot
of dealerships out there. Overwhelming majority are honest and are never going to scam a consumer.
It's a few bad apples that have given the industry maybe a bad name. But the infiltration of these
scammers is just going to make that worse for sure. And so you said it's often these like scam
groups based in like Russia and other countries. So it's not just like one person
sitting in Ohio. This is like really sophisticated organized crime. This is sophisticated organized
criminals. Like I'd call them more on the hackers. They're more like cyber attackers and cyber
hackers because they're using more sophisticated techniques. I've interacted with several of these
scammers who have sent me fake photos of themselves. They have sent a photo of themselves
standing in front of the tractor that they want to sell me with my name on it and the date.
They've sent me their driver's licenses. They've sent me pictures of the tractor on a trailer.
They've sent me forged documentation that shows like a great of a condition the tractor of the
car is in. All of this when I run it through analysis is all defects and generated. But this is
not one person sitting in Ohio. This is an organized group that I think is stealing millions of dollars
from Americans every month. And so in the report you outlined you know some of the key maybe little
tells of these websites or these scams. Can you walk me through some of those like how it just
caught them. Yeah some of the things that you're going to see on every single website
is the first is a 14 day money back guarantee. They're going to buy it back. So even if the
car gets shipped to you and you see the car and you're just not completely happy they are going
to offer to buy that car back within 14 days. But you're under no risk. You get all your money back.
The second thing is they'll offer what they call a trust kit. And the trust kit it's a term you'll
only find on these fake websites. It doesn't exist anywhere else but it's the term that they use in
all the websites. But what that trust kit really is is a full package of all the information about
that car that you would want. So it's got like the car facts report. It's got the VIN report.
It talks about the number of miles. The fact it hasn't been salvaged. So they're going to send you
this trust kit which is going to make you trust that the car is in good condition before they
send you the car. And then the third thing that they offer on all the websites is a 30 day mechanical
warranty. So it's this combination of these three unique things that you won't see on most dealer
websites together or at all that they put on every single website. And that's how we were able to
kind of fingerprint with these websites look like and find all of them. In fact, every week
we find two or three new ones that are popping up with the same terminology that they're using on
all of them. Yeah. So you said they kind of blew up last year as a so is it becoming more common
or you know what is the timeline of this and how has it grown?
These really started to emerge I'd say February, March of last year and it really grew through
2025 and it's somewhat I'd say stabilized meaning that we're seeing about the same number of new
websites pop up as websites that fall off. So I think it's somewhat stabilized. I think what's
changed is these websites continually get they're getting better and better at refining the way they
use these deep fakes and make the deep fake images better. So they're more likely to fool a consumer
now as they kind of improve when they see something fail, they improve upon that they use AI to
perfect it. That's what I'm seeing. Yeah. And you know what kind of dealership do if they go online
and see that their website has been spoofed. So they can immediately report that to the FTC. It's
always a good idea to report any sort of scam or fraud to the FTC. That gets the government
to basically register it, investigate it if it's part of a larger scheme and then take more action
at a kind of a government level. The second thing they can do is contact the website administrators
of those sites, inform them that it's an impersonation scam and request that the website be taken down.
The third thing that they can do is on their own website, they can place a warning that,
you know, be aware of impersonators that are impersonating us. So they can take measures
like that to try to number one, inform the government, take down the websites and inform
their consumers. Those are all things that they can do to make sure that consumers are not getting
involved. Since the scammers are most often based out of the US, is there a much legal
recourse? Like is anyone going to get in trouble with this or is the website just going to get
taken down? There is legal recourse if the cases get large enough, which is why the reporting to
the FTC is important is because that gets the notice of the FBI and law enforcement to look at
the commonalities. And if indeed this is an international crime game that's stolen millions
of dollars from Americans, it's more likely to get their attention and they will be able to do,
to take some enforcement action against them. But in most cases, all scams, even beyond this,
most criminals will never do any time, which is why consumers, dealers and businesses kind of need
to protect themselves. There's simply not enough law enforcement to go around to prosecute all these
scammers and criminals that are operating all over the world now. Is there anything a
dealership can do to prevent this from happening to them? I think there is. My recommendation
would be if you're a dealership is put up a website. If you don't have a website, you want
some online presence because these scammers are looking for dealerships that don't have websites
because then they can stand in and create the website on behalf of the dealership and
reroute the customers to them. If you don't have a website in your dealership, I'd recommend that
you put up a website, even if it's just something to have your phone number, your hours, and your
location so that you don't get impersonated. You can read all of our own page hotters reporting on
these scams and how dealerships are dealing with them at AutoNews.com. That's Daily Drive for today.
as well as Aaron Lawrence-Eilif, Hans Grimel, and Lindsey Van Hully for their reporting for
today's podcast. You can get the latest news on cybersecurity, autonomous vehicles,
and everything happening in the auto industry at AutoNews.com. Come back tomorrow for a
conversation with Cox Automotive's Skyler Chadwick about how dealerships are growing
fixed ops revenue. We're seeing those customers drop off and servicing their vehicle at that year
two mark, and I think that's really concerning to be. We'd love to hear from you. Let us know what
you think of the show and the topics we cover today. Send us an email at dailydrive at autonews.com
or leave us a voicemail at 313-444-2774. And if you enjoyed the podcast, remember to like,
leave a review, and subscribe so you never miss an episode.
About this episode
Toyota unveils an AI vision system at its testing site in Japan, aiming to improve driver-assist by understanding hazards and predicting what’s next—an effort to catch up with China’s faster AI progress. Boston Consulting Group argues automakers are chasing the wrong segments and should target “white spaces” instead. Tesla’s autonomy push gets a twist: the Roadster becomes its last human-driven car, while Musk also says older Teslas with Hardware 3 won’t reach full autonomy. The back half focuses on AI cloning scams hitting dealerships, including how fake sites use deepfake testimonials and wire-transfer fraud—and what dealers can do to respond.