🎙️ UCDP #78 – AI, Human Touch & Dealer Loyalty w/ Aaron Kleinhandler of Better Car People

In this transcribed episode of the Used Car Dealer Podcast, Zach Klempf is joined by Aaron Kleinhandler, CEO of Better Car People, to discuss how AI-powered technology combined with live agents is reshaping dealer customer engagement.

Aaron shares lessons from his entrepreneurial background, including scaling Spectrio through multiple PE cycles, and how those experiences shaped his leadership at Better Car People. The conversation dives into balancing automation with human touch, dealership training challenges, the integration of Brooke.ai, and why retention and customer experience are the ultimate success drivers for dealers.

Whether you’re navigating omnichannel communication, adopting AI tools, or focused on building loyalty, this episode offers practical takeaways on scaling efficiency while keeping the human touch at the core of dealership operations.

Zach: Hi, Zach here and today we have Aaron Kleinhandler on the Used Car Dealer Podcast, and it’s a pleasure to have you on. He is CEO of Better Car People, which blends AI-powered technology and live agents to revolutionize dealer customer engagement.

Zach: So you’re at the forefront of an industry that’s evolving really fast. I’m eager to dig into your journey and what’s next for dealerships today. So Aaron, thanks for joining me on the podcast.

Aaron: Yeah, thanks Zach. I’m happy to be here.

Zach: So Aaron, you’ve led companies like Spectrio through growth via add-on acquisitions, and then moved into the automotive BDC space with Better Car People. What lessons from your past experience have shaped how you’ve led Better Car People today?

Aaron: Yeah, I mean, we started Spectrio—I know the founders of Spectrio—but we took it through multiple private equity ownerships, three or four investment cycles. But we started it as an engagement company. The concept was simple: when you got put on hold, you heard music and messages. People were being put on hold all the time, and the messaging they got often wasn’t customized. It made the wait seem longer, so when the agent finally picked up, the experience had already started off poorly.

Aaron: That was the founding of the business. Over time we added products and services, through both acquisitions and product development, to enhance the customer experience—eventually becoming one of the largest digital signage businesses. We served verticals like aftermarket, medical, and retail. At exit, we had about 140,000 locations. Automotive was always a piece—we partnered with Bridgestone, Michelin, Goodyear—and eventually acquired Automotive Broadcasting Network. By then we had over 20,000 auto-related locations if you included aftermarket repair shops.

Aaron: What we were really doing was bringing consistent messaging—online, in-store, on kiosks, digital signage. But there was a big miss: the inconsistency between online/phone messaging and the in-store journey. That’s what led me toward automotive more seriously. I partnered with Benjamin Chumsae of Central BDC. He was setting appointments and building some tech. Together we asked: what other tools are needed to make omni-channel communication better for dealerships? That became the thesis for Better Car People.

Zach: That’s really interesting, especially the multiple PE cycles and merging AI with BDC services. What was your vision when you accepted the CEO role at Better Car People? And what surprised you about the auto space?

Aaron: What attracted me was how ingrained auto dealerships are in their communities. Even the big groups are essentially local businesses. I believed there was huge potential in marrying brand-level strategy with localized execution. Investors saw it too—it’s why automotive has always drawn private equity interest. We’ve since made 5–6 acquisitions ourselves. It’s a natural fit for my background in scaling businesses and for the industry’s need to modernize.

Zach: Better Car People merges live agents with AI-driven tools to engage leads across text, email, chat, and phone, 24/7. How do you strike the balance between automation and human interaction?

Aaron: We use AI to make humans more efficient, not to replace them. AI quickly identifies intent, drafts responses, and reviews millions of leads—but humans still oversee, edit, and finalize. Over 50% of email leads require a human touch. The car journey almost always ends with a person, so our philosophy is AI-first for efficiency, human-first for relationships.

Zach: In 2024 you acquired Proactive Dealer Solutions, adding Brooke.ai and consulting. How has that expanded your capabilities?

Aaron: It was a natural fit. Brooke.ai is a leading voice AI tool for service scheduling, but we didn’t acquire them just for tech. We valued their training expertise. Dealers struggle operationally—sales, service, process discipline. We now combine tech with hands-on coaching. We’ve trained AI on years of real BDC calls to embed best practices. That’s a differentiator.

Zach: What’s onboarding like for a dealer adopting your AI tools?

Aaron: AI isn’t plug-and-play. You start slowly. Schedulers aren’t optimized, CRMs aren’t always clean, APIs are limited. Our onboarding uses experienced BDC managers who’ve lived it. We optimize dealer systems, not just ours. It takes 60–90 days of fine-tuning before trust builds. AI is only as smart as the data you feed it.

Zach: Consumers expect immediate engagement across channels. Where do you see omni-channel AI+human evolving?

Aaron: Dealers historically had siloed tools: one vendor for chat, one for text, another for CRM tasks. It was disjointed. Customers had to repeat themselves. Today, customers expect continuity—same context across phone, text, chat, email. Our “Agent Assist” product helps by surfacing full conversation history with suggested talking points. The key is AI context plus human backup.

Zach: Dealers are facing reconditioning bottlenecks, inventory shifts, retention challenges. How do you support them?

Aaron: Loyalty is the number-one challenge. There are more great cars than ever, EVs included, and customers are keeping them longer. Dealers that retain customers across sales + service cycles will win. We’ve built loyalty tools and mystery shop programs to find missed touchpoints. Brooke.ai, backed by humans, ensures no lead or service request falls through.

Zach: You teased a new product launch—what’s coming?

Aaron: For the first time, we’re launching a Sales AI agent. It responds to leads in real time, but with 24/7 human review of AI conversations to prevent stalls or errors. If the AI goes back-and-forth too long, humans step in. That hybrid oversight is unique. We’ll be announcing OEM partnerships with it shortly.

Zach: Looking ahead, how do you see dealership CX evolving in the next 3–5 years?

Aaron: AI will take over more conversations, but defining success is key. For us, success is converting leads to appointments and improving efficiency. Dealers need their own ROI definition. Customers still make emotional, high-dollar purchases—AI can smooth friction, but humans deliver the experience. Retention and CX will remain the dealer’s biggest opportunities.

Zach: Final rapid fire: what excites you most about your work today?

Aaron: Working on product. Ideating, iterating, hearing dealer feedback, making tech that really solves problems.

Zach: One tech tool you can’t run the business without?

Aaron: Salesforce + NetSuite. Frustrating at times, but essential for scale.

Zach: One word—biggest opportunity for dealers today?

Aaron: Retention. Customer experience drives retention, and retention drives success.

Zach: Well said. Aaron, it’s been a pleasure. Thanks for joining the podcast.

Aaron: Thank you, Zach. I enjoyed it. Next time I surprise you with a new product launch, I’ll come back again.