Used car retailer Motorpoint has reported a sharp rise in profits after embracing artificial intelligence to power its online sales. The London-listed firm said it sold hundreds of cars through its new AI agent, which has become a key part of its digital sales strategy.
Chief executive Mark Carpenter said the technology, known internally as Lily, had helped the company sustain conversations with potential buyers in a way that human agents often could not.
“We’ve sold about 350 vehicles with the AI agent since we introduced it,” Carpenter said. “Our sales agents keep asking who Lily is, because Lily is the name of the online agent who sold the car. The main purpose is to move customers further along the buying journey — so when they do need to interact with our team, we can answer questions faster and make the process more satisfying.”
Motorpoint said its AI-driven, data-led approach to vehicle sourcing and customer engagement was now fully embedded across its operations. The strategy contributed to an 80 per cent rise in profits to £2.7 million for the six months to the end of September, alongside a 15 per cent increase in turnover to £647.7 million.
The strong performance underscores how digital transformation is reshaping the UK’s automotive retail market, with Motorpoint using technology to streamline the car-buying experience and boost efficiency at a time when consumer confidence remains fragile.
However, Carpenter joined a growing list of UK chief executives warning that economic uncertainty surrounding next month’s autumn budget could dampen consumer sentiment heading into the festive trading period.
A series of potential tax changes — including increases to income tax, national insurance, bank levies, vehicle duties and property taxes — have been floated by Treasury sources ahead of Chancellor Rachel Reeves’s Budget on 26 November. The Chancellor is expected to raise taxes by at least £30 billion to address a widening fiscal gap.
“Trailing different tax changes, whether leaked or speculative, is hugely unhelpful when customers start doubting their disposable income,” Carpenter said. “Uncertainty is always the worst thing in business. Any leader would prefer a stable, known environment — and with this year’s Budget arriving a month later than usual, it’s even harder for seasonal retailers heading into Christmas when people aren’t sure how much they have to spend.”
Motorpoint, which specialises in nearly new cars, has invested heavily in digital tools and automation to stay competitive amid tight margins and volatile consumer demand. The company said it would continue expanding its AI-led operations to deliver faster responses, smarter pricing, and a more personalised customer experience.