The week’s priorities
1. The loan-interest deduction needs a careful explanation
Eligible buyers may deduct up to $10,000 of qualifying car-loan interest per return—not receive a $10,000 tax credit. The final IRS regulations have a Nov. 9 effective date, but the deduction covers qualifying interest for tax years 2025–2028. Post-2024 first-lien borrowing, personal use, original-use/new-vehicle requirements, U.S. final assembly and income limits all matter. Interest attributable to rolled-in negative equity does not qualify. The sales desk and F&I office need to explain eligibility without promising every buyer the maximum tax saving.
Why it ranks: This reaches the sales desk, F&I office and lender reporting process, with room for an expensive misunderstanding.
Possible industry effect: Certain financed vehicle service, GAP and tire-and-wheel protection costs can be part of qualifying purchase debt under the final rule. That does not make every product, loan or customer eligible; keep tax savings out of blanket payment promises.
Source: Treasury/IRS final regulations, published Sept. 8.
The other stories from Saturday, November 7, 2026.
2. Customer consent belongs in the delivery checklist
GM’s driver-data settlement puts customer consent and dealership enrollment controls back on the delivery checklist.
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3. Group 1’s F&I decline is bigger in total than per deal
Group 1’s total F&I revenue fell more than income per deal. The U.S.-only figure and consolidated figure cover different scopes.
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4. October slowed overall; Honda’s result was stronger
October’s sales pace slowed even as Honda posted a stronger result. Inventory and financing plans may need to differ by brand.
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5. Product income carries most of JM&A’s F&I mix
Products supplied most F&I income per deal in JM&A’s sample. The participating dealers are not a national census.
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6. CarMax plans to grow lending and protection income together
CarMax paired Tier 2 lending and protection plans in its growth strategy. The targets are not results already delivered.
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7. Arch’s PDS agreement puts provider ownership on the watch list
Arch’s agreement to buy PDS puts provider ownership on the watch list. It does not show that current coverage or terms have changed.
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Tax rule: keep the dates and financed amounts separate
Keep the tax rule’s effective date separate from the deduction’s tax years, and separate eligible financed amounts from other debt.
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Data settlement: don’t accept permissions for the customer
The GM settlement is not a new industry-wide regulation. Customer enrollment permissions should remain with the customer.
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Two recall campaigns belong on the VIN check
GM brake software and Hyundai airbag software recalls belong on inventory VIN checks. Safety remedies are not a reason to sell a service contract.
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