Blog / News

Sales

• New Feature: Sale Price Default Option

  In the upcoming update, you’ll find a new setting under Settings → Defaults → Sales Defaults (line 20) that allows you to set the Sales screen to use the Sale Price instead of the Asking Price as the default value (Sourced from the inventory tab).

  If the Sale Price is $0, the system will automatically fall back to the Asking Price, ensuring the pricing field is never left blank.

  This enhancement gives your sales team more flexibility while keeping your workflow compliant, accurate, and consistent with your advertised prices.

• New Feature: Business Customer Option Added to AutoFinance Plus

  AutoFinance Plus now includes a Business Customer option—similar to AutoDealer Plus—allowing you to designate and manage business accounts with ease.

  A new select box for Business Customer will appear in the Finance Info title banner, located next to the existing Lease option. This enhancement improves workflow flexibility and ensures accurate customer classification for finance agreements.

  If you have any questions or need assistance enabling this feature, our TSM team is here to help.

• California Dealers: GAP Cap Enforcement in ASN Menu

  For California dealers using the ASN Menu to sell GAP, state-imposed GAP caps are now enforced directly in the menu, just as in the DMS.

  • The cap is based on the default cash down amount.

  • If a lower cash down is selected, the system could technically allow a higher GAP price, but the menu will still cap GAP at 4% of the base amount financed.

  This ensures compliance with California regulations while giving your team flexibility during the sale.

• Updated Bushing Law Feature in F&I Tab

  Based on dealer feedback, we’ve redesigned the Bushing Law feature in the F&I tab—thank you for your input!

  Key Enhancements:

  • A new “Ignore” button has been added. All actions—Ignore, Decline, Approve—are fully logged.

  • Each Form 553 print requires one of these responses.

  • Phone carriers are now displayed.

  • Texting to work numbers is blocked, and phone calls do not count as official Decline/Approval.

  • Communication logs are linked directly to each Bushing log.

  • Overall status shows “Complete” once all logs are resolved; otherwise, it shows “Incomplete”.

  • BushingAge has been added to Custom Reports for enhanced tracking.

  These updates help streamline your compliance workflow while keeping communications clear and fully documented.

Contract Screen

• Florida Dealers: New Bill of Sale Form (HSMV 82050)

  In AutoFinance Plus, Florida dealers now have a new Bill of Sale form (HSMV 82050) available for repossessions in the Collateral screen.

  This update helps ensure compliance with Florida’s documentation requirements for repossessed vehicles.

Reports

• New Feature: Faster Loading for Custom Reports

  ASN has improved how Custom Reports load to significantly boost speed and reduce wait times.

  Custom Report data now refreshes automatically every hour, allowing most reports to open much faster throughout the day. This improvement enhances performance without affecting standard ASN CAN reports.

  If you make changes and need a report to reflect updates immediately, you can still pull live data:

  • Go to line 6 – Custom Rpt Data

  • Select “Live”

  • The system will refresh instantly (may take a few minutes, similar to the prior method)

  This gives you the best of both worlds—faster daily use and on-demand live data when needed.

• New Trade Source Deskperson Field Added to Custom Reports

  A new field, TradeSourceDeskperson, has been added to the Custom Report data sources for All Vehicles and Unsold Vehicles.
  This enhancement helps dealers track profit and performance by the desk manager who sourced or took in the trade, giving better visibility into trade-in effectiveness and accountability.

• New Field: IsBusiness Added to Custom Reports

  A new field, IsBusiness, has been added to the Sales List report source in Custom Reports.

  This allows dealers to identify and parse sales where the customer is a business, even if the transaction is classified as Retail. It provides better reporting and analysis for business versus individual customer sales.

Settings-Security

• New Security Feature: Write-Down Control (ID 950)

  A new Security ID 950 has been added to control access to the Write-Down button in the Accounting → Journal Entries screen and on line 67 in Inventory.

  This allows dealerships to restrict write-down actions to authorized users, enhancing internal controls and protecting financial accuracy.

 Bookkeeping

• New Feature: Flooring Status Alerts

  When selecting a flooring company in Write a Check, any invoice with a status of Tripped, Final, or Locked (excluding Pending) will now be highlighted in red.
  Hovering over the invoice line will also display the vehicle’s sold date, giving you quick insight before posting payments.

Accounting

• New Feature: Automatic Memo Note for Reprinted Checks

  In Accounting → Check Register, when you reprint a check using a new check number, the memo field will now automatically include:

  “Reprint, Original Check #XXXX”

  This makes it much easier to search, audit, and track any checks that were reissued.

  Tip:
  If you still need to issue a check, we recommend reprinting it with a new check number rather than voiding or reversing the original. This keeps your records clean and improves traceability.

Settings-Security

• New Security Feature: Write-Down Control (ID 950)

  A new Security ID 950 has been added to control access to the Write-Down button in the Accounting → Journal Entries screen and on line 67 in Inventory.

  This allows dealerships to restrict write-down actions to authorized users, enhancing internal controls and protecting financial accuracy.

CRM

• New Feature: AI-Powered Follow-Up in CRM

  When viewing a client in ASN CRM, click the (+) next to Tasks & Appts and select “Create Follow Up.” You can choose from multiple follow-up types, set a time, and add notes.

  New AI Option: Click “Generate With AI” and the system will recommend a follow-up using your notes and text logs, providing suggested verbiage you can still edit.

  This feature speeds up customer contact while keeping communications consistent and uniform across your team.

• New Feature: AI-Powered Task System in CRM

  When viewing a client in ASN CRM, click the (+) next to Tasks & Appts and select “Create Follow Up.” You can choose from multiple follow-up types, set a time, and add notes.

  New AI Option: Click “Generate With AI” and the system will recommend a follow-up using your notes and text logs, providing suggested verbiage you can still edit.

  This feature speeds up customer contact while keeping communications consistent and uniform across your team.

• Enhanced TAG Display in Digital Recon (ASN CRM)

  Digital Recon now displays TAGs in four columns, making it much easier to view and manage long TAG lists at a glance.
  In addition, the Details page now respects your TAG priority/order settings, ensuring your most important TAGs appear first and remain consistently organized throughout the workflow.  

 Latest System Update

• The Upcoming version is 7.0.18.80 —Our newest update is rolling out in phases. If you don’t see it yet, no action is needed; it will arrive automatically. Once updated, you’ll have access to the latest features and improvements to keep your system running at its best.

Report Claims More Than Eight Million Records Offered for Sale on Dark Web

A recent online report alleges that 700Credit, a provider of credit-related services, has suffered a significant data breach potentially affecting more than eight million customer records. The breach reportedly occurred in late October.  

700Credit has not publicly confirmed the breach or provided any statement regarding these allegations; however, at least one class action lawsuit has already been filed in connection with this incident. Furthermore, we have become aware of communications from 700Credit to dealers describing the incident and purportedly taking steps to notify affected consumers.

If you are a dealer who uses 700Credit services, many of the same legal and practical considerations apply here as with the widely-reported CDK breach in 2024. This includes notice requirements, and other steps, such as notifying your insurance carrier and contacting your legal counsel. However, there are important differences as well – those are discussed below.   

Details of the Alleged Breach

According to the online report, threat actors have posted the stolen data for sale on dark web marketplaces after negotiations with the company allegedly broke down. The dark web listing allegedly includes a sample of 100 records that appear to contain sensitive consumer identity and verification information. The exposed data fields shown in the sample reportedly include: full names; Social Security numbers; dates of birth; residential addresses; and employment information (in some records).

Guidance for Dealers

If you use 700Credit, the first step is to seek information from 700Credit by contacting your 700Credit representative – and to do so quickly. You need to determine whether any of your customers were affected by the incident. Dealers should specifically ask whether your customer data was exposed and if so: (a) how many of your customer records in total; (b) which specific individuals (those will be the individuals you may need to notify); and (c) the state of residency of each individual (how many from each state, if applicable). You should also obtain details about 700Credit’s plan to notify affected consumers, regulatory agencies, and/or credit reporting agencies, whether the notice will be provided on your behalf (in your name) or not, the timeline for official notifications, and whether 700Credit is planning to address the notice in a timely and adequate manner under all state and federal laws.

Time is of the essence because you want to notify consumers in time for them to stop the potential problems. In most cases, under both state and federal law, the obligation to notify consumers must be met quickly. It varies, but the notice obligations are generally stated as something to the effect of  “as soon as possible and no later than 30 days from the incident.” 

Second, ensure that the contract amendments required under state privacy law and the FTC Safeguards Rule, with 700Credit (and all other vendors) are signed and up to date. ComplyAuto can help you with that process. We work with all dealer vendors and help you ensure that you have signed agreements with all vendors, including 700Credit if needed. See more details on that below. 

Are You Responsible for Notifying Consumers and Regulators? 

It is important to note that even if 700Credit is notifying consumers and/or regulators and taking other steps to rectify the situation, that may not satisfy all of your notice or other obligations to your customers under your state (or federal) law.

Remember that the basic “rules” are that dealers are generally responsible for breaches or security events involving their customer data, even when the incident occurs at a dealership service provider.  That means that dealers are ultimately potentially responsible for ensuring adequate notice is sent to affected consumers, state AGs, credit reporting agencies, and/or the FTC. See the detailed guidance at the links above for more details. 

NOTE: The notice obligations vary under state and federal law. There is no guarantee that any customer notice will be sufficient under your state law or federal law. Therefore, while dealers should certainly confirm that 700Credit will be notifying your affected customers, unfortunately, that may not end the inquiry.

ComplyAuto Data Breach Wizard

As a reminder, ComplyAuto customers have access to a Data Breach Wizard within the ComplyAuto software that will walk you through the complicated questions you need to answer about:

• The scope of the incident – how many of your customers were affected
• Whether you must notify affected customers
• Whether you are required to provide credit monitoring services to affected customers
• Potential state Attorney General notification requirements
• Consumer reporting agency notification obligations
• Potential Federal Trade Commission notification requirements

This tool can help you navigate the complex web of notification requirements and ensure compliance with applicable state and federal laws. It will even provide a sample notice letter if needed.  

This Incident Differs in Some Ways From Other Recent Vendor Breaches

While the general considerations and requirements regarding breach notice are similar to those in the 2024 CDK incident, this incident is different from CDK in several ways.  

First, even if your customer’s information was among the affected data, at this point, it is not clear what the extent of the customer information involved is, or even if it involves customer information provided to 700Credit by your dealership. With your DMS, the data involved came from your dealership, and you had an idea of the scope of data involved. Here, the customer information provided to 700Credit could have come from your system, but even if an individual is your “customer,” it could have come to 700Credit from a motor vehicle finance company, or other third party vendor, or even from a credit inquiry at another dealer.  

Even if you find that your customers are among the affected individuals, it may be unclear whose obligation it ultimately is to provide the required notices. You may need to determine whether you will notify your customers (or state or federal regulators) even if it may be unclear that the data at 700Credit came from your dealership. The potential customer relations issues may outweigh the strict legal analysis.

Second, the exact nature of your relationship (if any) with 700Credit may not be as straightforward as your service provider relationship with your DMS provider. Your dealership may have a direct contractual, service provider relationship with 700Credit – and if so, you must confirm that you have the requisite service provider contract amendments required under both federal and state law. However, you need to understand whether you have access to, or utilize 700Credit’s services through another service provider or third party so that you can ensure that your required data safeguards and risk assessment documentation covers 700Credit – either directly (they are a party) or indirectly through that other service provider or third party.

In other words, even if you don’t have a contract with 700Credit directly, you might use their services (and share data with them) through another service provider relationship (Service Provider “X”). You should take steps to ensure that you have the requisite service provider contract amendments required under both federal and state law with Service Provider X, and that those agreements cover the functions of 700Credit. ComplyAuto can help you understand and update your records if needed.  

Third, while DMS companies maintain highly sensitive information, the nature of the information that has allegedly been affected here is so highly sensitive that dealers should work with all due speed in seeking answers. Given the severity of potential harm to consumers from potential exposure of Social Security numbers, dates of birth, and credit information, dealers may wish to notify their customers even if they cannot ascertain with any certainty the nature or scope of the incident among your customers. Again, that is a difficult legal question about which you should consult with legal counsel.  

Act with Urgency Given the Deadlines and the Sensitive Nature of the Data

Again, the most important step you can take now is to reach out to 700Credit to obtain details about whether your customers were affected by the alleged incident – and to do so quickly.  Remember that the consumer notice you are required to provide includes important information for consumers about how they can:

• Place fraud alerts on their credit reports
• “Freeze” their credit to prevent unauthorized access
• Take advantage of credit monitoring or other services
• Take other protective measures to avoid identity theft or other incidents

Providing this information promptly—even in the absence of complete certainty—can help your customers take protective action and may reduce potential harm. Note, however, that it is not always an easy decision to send notice to consumers who may not have been affected, as sending a notice when not required can also cause consumer concern and distress. Dealers should consult with their legal counsel, insurance carrier, and IT professionals in deciding whether customer notice is appropriate.

One Last Reminder

The steps above are the most urgent at this time, but don’t forget that this may require you to also assess the risks related to this issue and account for it under the FTC Safeguards Rule.  That is not the pressing issue for today (and again, ComplyAuto can help), but don’t forget that incidents such as these will require some steps to be taken (and documented) with respect to periodic assessment of service providers, as well as your information security program under the Safeguards Rule.

Summary

While a data breach can happen to any company, communication is critical. Reach out to 700Credit today. Dealers should (a) get details from 700Credit; (b) notify legal counsel and insurance providers; (c) confirm safeguards and risk assessment documents are completed and signed; (d) use the ComplyAuto Breach Reporting Wizard to determine any reporting obligations, and; (e) consider proactively taking the steps necessary to protect your customers and the dealership. 

Source:  ComplyAuto

Santander Consumer USA is on the forefront of souring subprime-auto-loan backed securities.

BIRMINGHAM, Ala., October 30, 2025--(BUSINESS WIRE)--Protective Life Corporation (Protective), a U.S. subsidiary of Dai-ichi Life Holdings, Inc. (TSE:8750), announced today that it has entered into an agreement to acquire Portfolio Holding, Inc. (Portfolio) and its subsidiaries from Abry Partners. Portfolio is a leading provider of reinsurance management services and finance and insurance (F&I) products for dealers nationwide.This acquisition marks a significant milestone in Protective’s strategic growth within its F&I products and services. By integrating Portfolio’s dealer wealth programs and technology platform, Protective expands its ability to deliver leading solutions that drive dealer success and customer satisfaction.

The U.S. Department of Justice (DOJ) has ruled that the Consumer Financial Protection Bureau’s (CFPB) current funding mechanism is unlawful, casting doubt on the agency’s future.

On Tuesday, the CFPB notified the court overseeing NTEU v. Vought that the DOJ’s Office of Legal Counsel (OLC) concluded the Bureau cannot legally request funds from the Federal Reserve at this time.  The OLC determined that the Federal Reserve currently has no “combined earnings” from which the CFPB can draw funds, as required under the Dodd-Frank Act.  Because OLC opinions are binding on Executive Branch agencies, the CFPB must comply.

While the Bureau could seek an appropriation from Congress to continue operations, such a funding request appears unlikely amid recent efforts by the Trump administration to administratively wind down the agency’s activities.

The U.S. Supreme Court in May 2024 ruled the funding for the CFPB was constitutionally valid. After hearing a challenge from the U.S. Fifth Circuit Court of Appeals to the funding of the agency, the court handed down a 7-2 decision to affirm its constitutionality.

In the majority opinion of the court, Justice Clearance Thomas wrote the “funding mechanism” complied with the Appropriations Clause.

“The statute that authorizes the Bureau to draw money from the combined earnings of the Federal Reserve System to carry out its duties satisfies the Appropriations Clause. Accordingly, we reverse the judgment of the Court of Appeals and remand the case for further proceedings consistent with this opinion,” Thomas wrote.

The Dodd-Frank Act Wall Street Reform and Consumer Protection Act passed by Congress in 2010 created the CFPB. It was in reaction to the 2008 financial crisis.

“Congress charged the Bureau with enforcing consumer financial protection laws to ensure ‘that all consumers have access to markets for consumer financial products and services and that markets for consumer financial products and services are fair, transparent, and competitive,’” Thomas wrote.

The CFPB officially rescinded its Non-Bank Registration Rule (NBR Rule), which had tracked non-bank lenders accused of violating consumer financial protection laws.  Finalized in July 2024 and implemented that September, the rule was introduced under the Biden administration to enhance the Bureau’s market monitoring and nonbank supervision functions by collecting and publishing information about enforcement orders and compliance efforts.  In announcing the repeal, the CFPB cited the rule’s high costs and limited benefits, noting significant overlap with existing state-level frameworks.  The decision marks the latest in a series of deregulatory measures undertaken since the start of the Trump administration.  The CFPB initially proposed rescinding the rule back in May. 

Source: NIADA

Sales

• New Security Feature: #948 – Un-Lock Sale

  A new security option (#948 – Un-Lock Sale) has been added to give tighter control over sales transactions.

  When restricted, sales team members cannot unlock a sale, even if they have Security #93 – Lock Sales. This ensures stricter adherence to approved sales processes and reduces the risk of unauthorized changes.

   

Contract Screen

• Colorado Dealers: New DR 2842 Form

  A new Colorado DR 2842 – Supplemental Secure and Verifiable Identification form is now available.

  Dealers can add this form to sales documents, helping ensure compliance with Colorado’s updated identification requirements.

• New Feature: Spanish Arbitration Addendum Signature

  A new eSign feature has been added to the Spanish version of the Arbitration Addendum, allowing customers to electronically sign the document for faster, paperless processing.

• Washington Dealers: New LAW Form 553

  Effective November 1, 2025, Washington dealers will have a new LAW® form 553 available: Washington Retail Installment Sale E-Contract Including Arbitration.

  This updated form includes new disclosures and is designed to ensure compliance with Washington’s updated regulations for retail installment sales.

Reports

• New Feature: Custom Reports Auto-Refresh

  Custom Reports data now auto-refreshes every hour. This caching speeds up report loading, especially for large datasets or during high server demand, and helps reduce delays caused by busy networks or slow queries.

  If you think the data has changed since the last refresh, just go to the 'Custom Report' tab and right-click above line 10 where it says "Custom Report data refreshes every hour" to see the latest refresh time or manually refresh it (which can take up to 5 minutes).

  We’re working on more improvements to make reporting faster and more reliable in the coming months.

• New Feature: Automated Report Emailer Time Control

  The Automated Report Emailer now allows you to set the exact time of day to send out scheduled reports (see line 5).
  This enhancement gives you greater flexibility to deliver reports at the most convenient or business-critical hours.

• New Feature: Include Former Sales Team in CRM Reports

  In the Reports – CRM tab, you can now check the box on line 5 (BDR label) to include former sales team members who are no longer active in the system.
  This enhancement provides a more complete historical view of sales activity and lead performance for reporting and analysis.

• New Report: RO Declines

  A new “RO Declines” report is now available to track any shop ROs with declined items.

  To add it to your report list:

  1. Right-click on a report button.

  2. Navigate to the Shop category.

  3. Find RO Declines and check the box to assign it to your list.

  This makes it easier to monitor declined repairs and manage shop workflow efficiently.

 Bookkeeping

• New Feature: Inactivate Collection Category Items

  You can now inactivate collection category items that you no longer wish to use, even if they were associated with inactive loans.

  To use this feature:

  1. Go to the Financed Loan or Collections tabs.

  2. Open the Collection Category tab.

  3. Click the new “Inactivate” button to disable the item.

  You can also reactivate inactive items anytime if needed, giving you more flexibility in managing collection categories.

• New Feature: 2025 IRS Form 1099-C for Charge-Offs

  A new report and letter have been added under Finance Loan History in Bookkeeping to help prepare Form 1099-C filings for the 2025 tax year.

  The IRS now requires auto dealers to file Form 1099-C for any canceled debt of $600 or more if the dealer is considered an “applicable financial entity.” This includes dealers offering in-house financing or operating through a Related Finance Company (RFC).

  This new report makes it easier to track charge-off balances and generate the data needed for IRS compliance.

• New Security Feature: Second Name on Write-Checks Tab

  A new security option (#949) is now available to control the “2nd Name on Check” field.

  When restricted, this prevents a software user from adding a second name in the Write a Check screen (line 8 – 2nd Name on Check field), helping maintain tighter control over check issuance.

Accounting

• New Option: Edit SideNote Description

  You can now edit the SideNote description entered on line 38 of a new loan. Simply locate the invoice in the ledger, click the new blue arrow on line 3 – Description, and update the text. The revised info will replace the original entry for clearer recordkeeping.

 Latest System Update

• The Upcoming version is 7.0.18.75 —Our newest update is rolling out in phases. If you don’t see it yet, no action is needed; it will arrive automatically. Once updated, you’ll have access to the latest features and improvements to keep your system running at its best.

There's sticker shock, and then there's whatever is happening with America's used-car market. Prices for a slightly-less-than-new-car have been soaring over the past few years. Before the pandemic, the average price for a 3-year-old vehicle topped out at a little over $22,000. In 2025, the cost is upward of $31,000. And according to Edmunds, which tracks the car market, that number may soon sound like a bargain.

"I mean, it's kind of mind-boggling for anybody who had the pleasure or context of having bought pre-2020, right?" says Ivan Drury, the director of insights at Edmunds.

You may remember the used-car apocalypse nestled inside the whole-world apocalypse during the COVID-19 outbreak. Supply chain disruptions in new vehicle production, increased competition from rental car companies, and a surge in demand from consumers seeking to socially distance themselves from others behind the wheel caused a scramble for older vehicles. Like many things post-pandemic, the used car sector is not back to normal. The average price of all used car transactions is below its pandemic peak, but still thousands of dollars more expensive than it was six years ago. Prices are creeping up again, too: The most recent Bureau of Labor Statistics data shows they're up 6% over the past year.

"Those hangover effects from so much disruption from years ago, it's all playing out now," Drury says.

With tariffs in the mix and new car prices continuing to creep up, the future may be worse. The answer to the perennial question of when is the "best time" to buy a used car may now permanently be "there's no such thing as a best time." And when it comes time to get a car, new or used, hope you have some time to shop around.

Or as Drury puts it: "It's not just reestablishing your expectations, but coming to terms with today's new reality, which is unfortunately not in your favor."

To state the obvious, before a car can be used, it has to be new. So when there's a slump in new cars rolling off the lot, that hits the used vehicle market down the road. According to data from Edmunds, millions fewer new cars have been sold in the US in recent years. Sixteen to 17 million new cars were sold annually in the US from 2014 to 2019. From 2020 to 2022, that number fell to 13 to 14 million each year. Sales have been creeping back up — Edmunds estimates sales will finally surpass 16 million again this year — but even with the rebound, the ripple effects of the pandemic-era semiconductor shortage and other supply-chain and sales headaches continue to have an impact. 

"Those vehicles never entered the vehicle ecosystem to become used vehicles for consumers, and that's the crux of the matter right now, it's that hole that was made," says Jeremy Robb, senior director of economic and industry insights at Cox Automotive.

There simply aren't as many people going to dealerships looking to trade in cars they bought new two, three, or four years ago. And if they are turning up, it's with vehicles that were more expensive in the first place because of pandemic-era pressures. Stephanie Brinley, an automotive analyst at S&P Global, says that because of supply chain issues, carmakers focused on "their most popular models and their most popular trim levels," which tended to be on the middle or high-end of their price range.

"So you have a combination of a vehicle that was more expensive in the first place and relatively low supply," Brinley says.

Leasing is a factor, too. Typically, about 30% new cars are leased every year, Robb explains, but that fell to about 17% in 2022. Automakers would rather customers simply buy a car outright — they make more off of it — so heightened consumer competition for a limited number of pricey new vehicles reduced the need for manufacturers to offer leasing terms, because they were selling premium cars for close to full price. Most leases mature in 36 months, at which point the car is often turned in and put on the used car market.

"The lease maturities have really been contracting over the past year and a half and will continue to contract," Robb says.

Apart from the pandemic, there are other generally consumer-unfriendly shifts in the new car market that are trickling down to the used car market. New cars have gotten extremely expensive as people load up their vehicles with all sorts of pricey features and tech. Once a new car's price goes up, used cars of the same model go up, too, as they tend to be anchored together. American drivers lean toward bigger, pricier cars, which is fine with automakers since the larger models tend to produce more profits. Many more affordable, smaller vehicles have been pulled off the market altogether — RIP to the Ford Focus, Chevy Cruz, and Dodge Dart. The impact is multi-fold: Used cars are more expensive because they were more expensive when they were new, owners may be holding onto them longer to justify the higher price tag, and some more cost-conscious would-be new car buyers are being priced out of the market.

"We're not seeing a great expansion of new vehicles and definitely not entry-level new vehicles, so the people who would look to a $30,000 entry-level model are forced into the used car market," says Sam Fiorani, an industry analyst at AutoForecast Solutions. Some manufacturers are starting to notice the missing part of their lineups and fill it, but even those prices are going up quickly. "Where entry-level was $15,000 not too long ago, it's suddenly closing in on $30,000," Fiorani says.

"Every time you do something that raises the cost of a new car, they're at such high levels already, what you're really doing is creating another used vehicle consumer," Robb says.

When I ask analysts and auto experts whether the used-car price picture is going to get brighter anytime soon, the answer is more or less… not really. While vehicles are taking longer to sell as people hunt for deals and think it through, demand isn't coming down. Nathan Garnett, chief business officer at online marketplace OfferUp, tells me that even as listing prices for used cars have increased on the platform over the past year, sell-through rates have not budged. "Buyers are willing to pay those prices," he says.

It makes sense: The US is very car-dependent, and if you need a car to get to work or school or the grocery store, you need a car, full stop. Plus, driving can be a fun and pleasant way to get around.

As with many other industries, the tariffs are an elephant in the room. Brinley, from S&P Global, says their implications are the "thousand-dollar question." Many automakers have been eating the costs of tariffs, though that can't go on forever if trade uncertainty persists. Brinley says they're "cautiously watching" for trade agreements with the EU and Japan to be solidified, but bigger questions loom around negotiations between the US, Canada, and Mexico — especially since the free trade deal between the three countries is up for review in July 2026. "In the meantime of all of that, automakers are moving through a lot, so prices will come up," she says.

While tariffs haven't been a big factor so far, the anticipation of them caused some people to pull forward their purchase of a new car to avoid anticipated price hikes in the future. That's good for the used market in that they traded in their old car, but at the same time, dealers who are also expecting higher prices paid more for trade-ins than they would have otherwise. "That's messed with the market a bit," Drury says.

Tariff-driven purchases haven't been linear, either, says Kevin Roberts, director of economic and market intelligence at CarGurus, a car research and sales website. They saw sales of new and used vehicles pick up in March and April, around President Donald Trump's Liberation Day tariff announcements, normalize, and then pick back up again toward the end of the summer. "I think people were just kind of like, 'Oh, prices could go up even further. I should go get a car now if I was kind of looking for one," he says.

One of the more uncomfortable realities of the American economy in the wake of the pandemic is that prices will not return to their previous levels. While inflation has slowed, we won't see widespread deflation (nor do we want to). That means resetting expectations before you walk onto the car lot, developing a bit of price tag amnesia, and kissing that 2013 cost you may have in your head goodbye. There are surely deals to be had, but they're hard to find, and the $20,000 that might have gotten you a solid 3-year-old vehicle 10 years ago will now land you an 8-year-old car with 80,000 miles on it. On used vehicles, we've made our bed, and now we have to lie in it.

"You can't make new used cars," Fiorani says.

Source: BusinessInsider

The IRS guidance lets lenders inform borrowers without adding immediate reporting burdens.

• Lenders do not need to report 2025 auto loan interest directly to the IRS if borrowers receive a statement by Jan. 31, 2026.
• The deduction allows consumers to claim up to $10,000 annually on U.S.-assembled vehicle loans, retroactive to 2025.
• Transitional relief protects lenders from penalties and reduces administrative burden while IRS systems are updated for 2026 reporting.

The IRS on October 21 issued transitional relief for lenders required to report auto loan interest under the One Big Beautiful Bill Act (OBBBA), easing compliance for 2025. The move eliminates the obligation for lenders to file information directly with the IRS, provided borrowers receive a statement showing total 2025 interest by January 31, 2026.

The legislation allows consumers to deduct up to $10,000 in interest annually on new vehicles with final assembly in the U.S., applicable from 2025 through 2028. Income limits apply, and the deduction is available whether taxpayers itemize or take the standard deduction. The transitional relief was introduced to accommodate both lenders and the IRS, which noted that additional time is needed to update forms and systems.

For 2025, lenders can provide interest statements via online portals, monthly statements, annual statements, or other accessible means. Meeting this requirement protects lenders from penalties for failing to report to the IRS or provide timely statements to borrowers. The IRS released a draft Form 1098-VLI for 2026 reporting, but no direct IRS filing is required for 2025.

The auto loan interest deduction reflects a significant benefit for vehicle buyers. Experian data reveals the average new-vehicle loan in the second quarter was $41,983 at 6.8% interest, equating to roughly $2,660 in first-year interest payments. Without this transitional relief, lenders would have been required to collect detailed borrower and loan information, including name, address, interest paid, principal, and vehicle identification, and submit it to the IRS.

President Donald Trump signed H.R. 1 into law on July 4, making the deduction retroactive for 2025. The legislation represents a key element of the administration’s effort to encourage U.S.-assembled vehicle purchases, while minimizing administrative hurdles for financial institutions during the first year of implementation.

The IRS’s transitional guidance provides clarity to lenders and ensures borrowers are informed of the deduction without imposing immediate reporting burdens, enabling a smoother rollout of the new tax benefit.

ASN Tip:  This update may also apply to dealers with in-house financing or Related Finance Companies (RFCs). Stay informed and consult your tax professional to ensure proper reporting under the revised guidelines.

Source: CBTNews

Governor Newsom signed the California Combating Auto Retail Scams (CARS) Act, which will take effect on October 1, 2026. The law aims to increase transparency and consumer protection by requiring dealers to disclose the total vehicle price upfront, banning "valueless" add-ons, and creating a three-day, no-questions-asked return window for used cars under $50,000 with certain mileage and damage restrictions. It also mandates that dealers retain sales records for two years to prove compliance. 

• Transparent pricing: Dealers must clearly state the "total price," including all fees and accessories, in all advertisements and quotes.
• Banned add-ons: Dealers can no longer charge for add-ons that provide no benefit to the buyer, and they must disclose that optional products like GAP insurance or service contracts are optional.
• Three-day return policy: For used vehicles priced under $50,000, buyers have three days to return the car for any reason, as long as they haven't driven it more than 400 miles and it's in the same condition.
• Return fees: Dealers can charge a restocking fee of up to 1.5% of the sale price (with a minimum of $200 and a maximum of $600) and a per-mile fee for each mile over 250, up to a maximum of $150.
• Record retention: Dealerships must keep records of their compliance for two years.
• Add-on payment: Buyers have 10 days to pay for any optional add-ons, instead of the previous requirement of paying at the time of purchase.

• For consumers: The CARS Act provides consumers with more rights and information, making the car buying process less confusing and risky.
• For dealers: The law requires significant changes to sales and record-keeping practices, which may lead to increased compliance costs and complexity for dealerships. 

Compliance Tip:
ASN will implement all necessary updates and modifications to ensure California auto dealers remain compliant with the new rule taking effect on October 1, 2026. Stay tuned for more details as the effective date approaches.

Source: Gov.CA

A key group of American borrowers is falling significantly behind on their car loans. It’s yet another sign that the US economy is forming some serious cracks, leaving the most vulnerable in financial distress.

The percentage of subprime borrowers – those with credit scores below 670 – who are at least 60 days late on their car loans has doubled since 2021 to 6.43%, according to Fitch Ratings. That’s worse than during the past three recessions – during the Covid pandemic, the Great Recession or the dot-com bust.

America’s current subprime delinquency rate is at the second-highest level since the early 1990s. The only time it was higher: this past January. Cars are being repossessed at the highest rate since the Great Recession of 2008 and 2009.

It’s a disturbing trend to economists: Car loans are typically the last payments that Americans are willing to miss. They’re too important to their lives: Cars are essential tools to get to work, drive families and access food.

No room for error

Record car prices and high interest rates, combined with other inflationary pressures, have sent average auto payments to record levels and have put significant stress on car owners.

Although the financial stress on subprime car borrowers has stabilized in 2025 after large increases in late payments and repossessions over the past two years, economists fear what might happen if the labor market grows considerably weaker and layoffs become more common.

For subprime borrowers, the default rate – those whose cars have been or are about to be repossessed – which stood at nearly 10% in September, according to Cox Automotive data. That’s down from a year ago but above the long-term average.

Those borrowers often have no choice but to default. They can’t sell their cars because they owe so much more than it is worth. They often have already missed payments on other obligations, such as mortgage payments or rent, as well as payments due on credit cards and student loans.

“There’s no room for error,” said Jonathan Smoke, chief economist at Cox Automotive.

Surging costs

Just over half of new car leases and more than three-quarters of new car loans made in the second quarter had monthly payments of $500 or more, and 46% of used car loans have payments of $500 or above, according to Experian. For new car loans, more than 17% have payments of more than $1,000. 

Repair costs have also surged – at a time when many are holding onto their cars for longer to avoid splurging on a new one. Motor vehicle repair costs surged 15% year-over-year in August, according to the Bureau of Labor Statistics. That’s the most in nearly two years. And repair costs increased 5% between July and August, the biggest monthly increase on record.

Meanwhile, car insurance rates have increased significantly since the pandemic. In August, car insurance rose by the smallest annual rate in three years – but that still amounted to a hefty near-5% jump, well above the overall inflation rate.

Consumer pain

The increased costs of owning and maintaining a car aren’t happening in a vacuum: They’re taking place after years of rising prices at the supermarket and across the economy. And two years ago, many student loan payments that were paused during the pandemic became due again. A year ago, delinquent student loan payments started counting against credit scores again, pushing some borrowers into lower credit ratings that could raise the rates they were charged on other loans, including car loans.

Elevated subprime delinquency rates demonstrate how beneath the surface of blockbuster stock market returns and strong overall economic growth, many consumers are hurting.

Tellingly, Americans with stronger credit scores don’t appear to be struggling to make car payments. The delinquency rate among prime borrowers has increased significantly but remains very low at less than 0.5%.

“There are no alarm bells going off for prime borrowers,” said Rod Chadehumbe, chief asset backed securities strategist at Bloomberg Intelligence.

The wide gap between delinquency rates of prime and subprime borrowers is another reminder of the so called K-shaped economy: Many Americans who have money in the stock market and own increasingly valuable homes are doing well and spending aggressively, but many others, especially lower-income consumers, are struggling to stay afloat.

A number of lenders who specialize in subprime car loans expect a growing percentage of their clients to default and have their car repossessed, said Pamela Foohey, a law professor at the University of Georgia and an expert in both auto finance and bankruptcies.

The repo business has been quite active lately. Subprime lenders build GPS features into cars to make it easier for teams repossessing the vehicles to find them, she said. The lenders can even disable the ignition of the cars to prevent owners from driving them once they’ve defaulted on the loan.

“The (repo) numbers indicate it’s probably close to the Great Recession in volume,” said George Badeen, who runs Midwest Recovery and Adjustment in Detroit, and is also president of one of his industry’s trade groups. “It’s a target-rich environment at the moment.”

Source: CNN

Sales

• New Default: Maximum Profit Cap for Vehicle Service Contracts

 A new default setting has been added in the Sales screen (line 6) to manage the Maximum Profit Cap for Vehicle Service  Contracts (VSC).

          In addition to your existing maximum pricing, this setting allows you to control VSC profit by:

• A flat dollar cap, or
• A percentage of VSC cost

This gives your team more flexibility and ensures consistent profit margins on service contracts.

• California DMV Link Update: Automatic Repo Fee Box

          For California users, the DMV Link has been enhanced for greater accuracy.

          If a vehicle is already marked as a repossession in DMV Title Info (line 7), the system will now automatically mark the  Repo Fee box (line 1) in the pop-up screen.

This automation helps reduce errors and ensures repossession-related fees are applied correctly.

Contract Screen

• New Feature: Expanded Sub-Category Options in Contract Tab

We’ve added more flexibility when setting up custom sales forms in the Contract tab.

When a form is tied to the “Sales Contract” category, you now have expanded Sub-Category options. This allows you to link forms directly to specific VSC products, such as:

• Bundle
• Dent
• Key/Tire
• Maintenance
• Warranty

This update makes it easier to organize, track, and manage the exact products tied to each sales contract, giving your team more precision and control.

 Inventory

• New Default Setting: Automatic Stock Location

A new default option has been added in Miscellaneous Defaults:

• Line 21: Set a default Location for new inventory (Inventory tab, line 40).

When enabled, any new vehicle added to stock will automatically be assigned to this default location, saving time and ensuring consistency across your inventory records.

Shop

• New Shop Feature: Global Appointments/Reminders

           When adding shop appointments, you now have a new option: Global App/Reminder.

By selecting this option, the appointment description will appear in the Appts/Reminder tab, regardless of which scheduler is selected. This ensures that everyone with access to the appointment list can see it, improving visibility and communication across your team.

• New Shop Feature: Quantity Option for Fees in Kits

          When designing kits in the Shop module, you now have the option to assign a quantity for fees.

          For example, if you create a kit for 4 tires, you can not only set the proper labor hours but also automatically adjust related fees, such as environmental disposal fees, based on the tire count.

This update ensures more accurate estimates and invoicing while saving your team time.

• New Service Shop Feature: Pending PO Parts Tracking

          For Service Shop users, the Pending POs screen now includes a new column indicating which POs have received parts.

          This allows your accounting staff to track received items and avoid posting incomplete invoices in your accounting system. If a  user attempts to post a PO with all or some parts still unreceived, a prompt reminder will appear, giving the option to either:

• Confirm and post the invoice anyway, or
• Wait until all parts are received.

This update helps reduce errors and ensures your accounting records accurately reflect received inventory.

Bookkeeping

• New Bookkeeping Feature: “Add New Loan” Adjustment

          A new adjustment type has been added in the Bookkeeping – Adjustment tab: Add New Loan.

          This option is designed for situations where a customer has an open receivable balance and makes an agreement to finance it. With this feature, you can:

• Select all outstanding invoices from the list.
• Save and enter the details of the agreed financing.
• Manage the customer’s account going forward in the Financed Loan screen.

This streamlines the process of converting receivables into financed loans and keeps all records organized in one place.

ASN CRM

• CRM & Shop Enhancements: Invest in Your Success

          The latest update brings several powerful improvements to ASN CRM and Shop:

• Texting Log: A new way to view and track text conversations with your sales leads.

• Task Management: Enhanced tools to organize and group tasks by key factors, helping your team prioritize effectively.

• Navigation & Shop Features: Multiple enhancements for smoother workflows and better usability.

          These updates are designed to save time, improve communication, and support your dealership’s success. Take a few moments to review the new features — it’s an investment in your own efficiency.

And remember, our CTech Support Message is only a click away if you have any questions.

 Latest System Update

• The Upcoming version is 7.0.18.69 —Our newest update is rolling out in phases. If you don’t see it yet, no action is needed; it will arrive automatically. Once updated, you’ll have access to the latest features and improvements to keep your system running at its best.

Generating quality leads has always been a top priority for dealerships, but in today’s digital-first market, the rules have changed. Buyers are researching longer, engaging through more channels, and expecting a seamless online-to-showroom experience. To stay ahead, independent dealers need to combine strong digital strategies with authentic community engagement — supported by the right technology.

Digital & Content Strategies

• Website Optimization: Your website is your online showroom. Make sure it’s mobile-friendly, fast, and has clear calls to action. With ASN’s inventory features, every vehicle listing is automatically optimized with detailed data, images, and keywords to boost your SEO and help you rank higher in local searches.
• AI-Powered Lead Responses: Timing is everything. ASN’s AI-driven lead responses provide instant, consistent communication with prospects — acknowledging inquiries within seconds and keeping engagement alive until your sales team takes over.
• CRM Lead Management: ASN CRM centralizes all lead activity — from website forms and chat to third-party marketplaces — so your team can track, nurture, and convert every opportunity. Built-in tools help assign, prioritize, and follow up, ensuring no lead slips through the cracks.
• Social Media Presence: Regular posts and vehicle walkarounds on platforms like Facebook, Instagram, and TikTok help you connect directly with shoppers. ASN integrates inventory feeds with popular marketplaces and social channels, making it easy to promote your vehicles where customers are already looking.
• Paid Search & Retargeting Ads: ASN inventory exports include structured vehicle data to improve performance in Google Ads and third-party retargeting campaigns. That means higher visibility and better ROI from your marketing spend.
• Email & SMS Campaigns: Automated follow-ups, price-drop alerts, and service reminders can all be managed directly from ASN CRM, helping you stay in touch with customers at every stage of the journey.

Community & Offline Tactics

• Local Partnerships: Collaborate with local businesses — for example, offering a gift card with every test drive — and promote it through ASN’s email/SMS tools to maximize awareness.
• Event Sponsorships: Sponsor local sports or charity events. ASN’s CRM makes it easy to capture and manage new leads you meet in the community.
• Referral Programs: Reward satisfied customers who refer new buyers. With ASN, referral tracking and reward fulfillment can be tied into your CRM process.

Customer Experience & Engagement

• Live Chat & AI Assistants: Use ASN-integrated chatbots to capture leads in real time and answer common questions 24/7.
• Customer Reviews: Encourage customers to leave reviews. ASN CRM helps you automate review requests via text or email after a sale or service visit.
• Re-Engage Past Prospects: Use ASN CRM to identify and follow up with past leads or customers who haven’t purchased in a while.

The Bottom Line

The most effective dealers in 2025 will be those who connect with customers wherever they are — online, in the community, or at the dealership. With ASN Software, you don’t just get a DMS, you get an entire ecosystem built to grow your dealership: AI lead responses, robust CRM lead management, inventory tools that boost SEO, and integrated communication channels. Together, these features help you capture, nurture, and convert more leads into loyal customers.

Source: ASNAI

Dealers are reminded that Office of Foreign Assets Control (OFAC) records must be preserved for 10 years. These records should be stored in cold storage—secure, offline, and protected from alteration—to ensure both compliance and data integrity.

Maintaining proper OFAC records is more than just a regulatory requirement. It demonstrates your dealership’s commitment to safeguarding customer information, supporting due diligence, and reducing compliance risks.

Best practices include:

• Archiving OFAC records in secure, offline systems.
• Verifying backups to ensure they remain accessible and unaltered.
• Scheduling regular audits to confirm compliance.

By preserving these records correctly, your dealership stays aligned with federal requirements and avoids potential penalties while ensuring accountability and trust.

Footnote: ASN already requires OFAC records to be preserved in your system indefinitely, so you remain fully compliant with the 10-year storage requirement.

Source: OFAC-Treasury 

Auto finance company Lendbuzz has filed a registration statement on Form S-1 with the US Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO). 

The Boston-based fintech, which uses AI to assess loan applications for car buyers with limited credit history, plans to list its common stock on the Nasdaq Global Select Market under the ticker symbol LBZZ. 

In a statement on the filing, Lendbuzz confirms that the amount of common stock and the price range for the proposed listing "have not yet been determined", while the move remains subject to SEC approval. "There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering," the statement continues. 

Lendbuzz has enlisted Goldman Sachs, JP Morgan, RBC Capital Markets, and Mizuho as lead book-running managers for the proposed offering, while TD Securities, Citizens Capital Markets, Keefe, Bruyette and Woods, and Needham and Company are to act as passive bookrunners. 

The company, founded in 2015 by CEO Amitay Kalmar and CTO Dan Raviv, previously worked with these four lead bookrunners during a $262 million asset-backed securitisation in January this year. Prior to this, Lendbuzz bagged $400 million through a forward flow programme inked with Viola Credit in August 2024. 

Source: Fintech