Compliance & Regulation Spotlight
Tax rule: keep the dates and financed amounts separate
Final, not proposed. Nov. 9 is the regulations’ effective date, not the deduction’s first tax year. The final rule includes examples of qualifying financed purchase-related costs such as service plans, GAP and tire-and-wheel protection, while excluding rolled-in negative equity. Mixed qualifying and nonqualifying debt requires proportional allocation of interest. Lenders and other businesses receiving at least $600 of qualifying loan interest also face reporting requirements. Have compliance and tax advisers map those requirements; send customers to their own tax adviser for eligibility. Treasury/IRS final rule.
The other stories from Saturday, November 7, 2026.
1. The loan-interest deduction needs a careful explanation
The car-loan interest deduction needs a careful explanation. Eligibility rules and financed amounts matter; it is not a $10,000 tax credit.
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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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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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