Blog / News

Source: FI-Magazine

Tip: Maximize Menu Sales with ASN Menu

ASN Menu is a powerful tool that helps you present your products clearly and stay fully compliant with the 300% rule. That means offering 100% of your products to a $100 customer for $100 items — fully transparent, fully documented, and customer-friendly.

Use ASN Menu to inform, educate, and let customers choose the protection products that truly benefit them. A menu that’s clear, compliant, and customer-focused not only boosts sales but also builds trust and reduces disputes down the road.

1. The first 1 and I feel the most important, is people. Their overall people management makes them better – hiring, training, pay plans and their overall employment environment. They hire slow and fire fast. They hire whom they want and need. They continually train their entire staff. Their pay plans promote a team mentality. They provide a professional but fun work environment. “They” do people very well.
2. Next are 2 processes and procedures. They have documented processes and procedures for most, if not all, aspects of their organization. Documented is the keyword here. They make sure the processes and procedures are implemented and adhered to consistently. They do this by continually training and updating when necessary. “They” do processes and procedures well.
3. Education 3 is the next thing that sets them apart. They are always looking for ways to educate themselves. They belong to local, state and national dealer associations. They subscribe to as many trade publications as they can. They attend industry conventions and conferences. They seek advice from industry consultants and are members of 20 Groups. “They” educate themselves well.
4. Technology 4 is something else that they take advantage of. They not only have a DMS that can handle their needs, but they also know how to use all it has to offer. They have a CRM that they understand how to use and make sure that the data contained is as accurate as possible. They not only have a well-functioning website, but also track and make changes when necessary. And they take full advantage of the internet for collections, inventory acquisition and preemployment testing. They are taking full advantage of AI in all facets of their businesses. “They” are technologically savvy
5. Lastly, 5 they plan. They know what their cash flow needs are. They budget for expenses. They project revenues. They do this not only every month and annually. They do this based on what they can do, not what they necessarily want to do. They are constantly reviewing their plans to make necessary changes as needed. “They” plan effectively.

This is what “they” do. From what I’ve experienced, these are the keys to sustained success regardless of the current political or socioeconomic conditions. I can assure you that they didn’t always do these things. They all realized at some point what it would take to be one of them. Most dealers I know do at least one of these. Some even two or three, but only a few do all of them. And do them well. How close are you to being one of “Them?”

Source: NADA

• Targeting "Junk Fees" and Add-ons: AGs are clamping down on unauthorized or hidden fees, such as un-itemized vehicle preparation charges and pre-packaged add-on warranties.
• Used Vehicle Title Issues: Local DAs are prosecuting dealers for failing to transfer ownership titles within legal timeframes (e.g., California’s 30-day requirement), a common issue in used car sales.
• Deceptive Advertising: Actions often focus on bait-and-switch tactics, failing to honor advertised prices, and omitting prior accident damage.
• Loan/Financing Abuses: Investigations target misleading credit practices, such as false advertising regarding financing terms and the illegal sale of "gap" insurance.

• California AutoNation ($650k Settlement - Feb 2025): Multiple California District Attorneys (including LA, Riverside, and Santa Clara) forced AutoNation subsidiaries to pay $650,000 for failing to timely transfer used vehicle titles to consumers.
• Illinois Auto Dealer ($20M Settlement - Dec 2024): The Illinois AG and FTC reached a massive settlement with a major dealership group over bait-and-switch financing and unwanted, high-profit product add-ons.
• Ohio Used Car Dealers (2025): The Ohio AG sued several dealerships for failing to file certificates of title and improper titling practices.
• Minnesota Used Car Suit (2024): The AG sued a dealership for violating newly strengthened state warranty laws, the first action under updated regulations.

• California CARS Act (Effective Oct 2026): This new law aims to significantly increase transparency by requiring itemized pricing and tightening rules on add-ons and advertising.
• Arbitration Law Changes (2026): New California legislation limits the use of forced arbitration for consumers, allowing more cases to be heard in public court.

The U.S. is giving tax relief to some new car buyers in 2026.

If you are considering buying a new vehicle in 2026, the White House just gave you some great news.

On Wednesday, January 7, U.S. Treasury Secretary Scott Bessent announced that the government is working on a significant tax break that would offer some much-needed relief to car buyers who are struggling to afford a new vehicle.

U.S. 2025 new-vehicle sales forecast

• GM: 2.83 million vehicles (+5.1% year over year); 17.3% market share
• Toyota: 2.52 million vehicles (+8.4% YoY); 15.5% market share
• Ford: 2.18 million vehicles (+5.6% YoY); 13.4% market share
• Hyundai: 1.84 million vehicles (+7.9% YoY); 11.3% market share
• Honda: 1.42 million vehicles (+0.6% YoY); 8.8% market share

The Treasury announced it is implementing a No Tax on American Car Loan Interest rule that offers eligible taxpayers a $10,000 deduction per year in auto loan interest for cars purchased during Trump’s second term.

“For millions of Americans, a car isn’t a luxury, it’s how you get to work, school, and childcare,” Bessent said on X.

“This deduction helps lower monthly costs and makes car ownership more affordable when families need it most. The tax cut also supports American workers by applying solely to U.S.-assembled vehicles, strengthening domestic manufacturing,” he said.

Bessent explained that the Treasury and the IRS are issuing clear rules on the tax break “so taxpayers know exactly how the deduction works.”

But only certain cars will be eligible for the tax break. Here are the criteria for taking advantage of the new rules.

These vehicles are eligible for a new $10,000 automotive tax credit

In his X announcement, Secretary Bessent stated that U.S.-assembled vehicles purchased between 2025 and 2028 will be eligible for the tax credit; however, the program is somewhat more restrictive than the announcement suggests.

The One Big Beautiful Bill Act, signed into law on July 4, 2025, lays out the requirements for new car buyers to receive the relief. Individual car buyers making more than $100,000 and couples making more than $200,000 would see the benefits begin to phase out.

The tax credit will only go to buyers who purchase cars assembled in the U.S. So even if you’re buying a Toyota, as long as it’s one of the nearly 2 million vehicles the company builds in the States annually, you’re eligible. 

But popular imported models, even if they’re imported by one of the U.S. Big 3 automakers, are not covered.

New cars, SUVs, vans, pickup trucks, and motorcycles weighing under 14,000 pounds are eligible, but to qualify, the vehicle must be purchased for personal use, not business or commercial purposes, and its final assembly must be done in the U.S.

Final assembly refers to a process by which the major components of a vehicle — engine, transmission, body, and chassis — are fully integrated, and the vehicle is completed at a U.S.-based manufacturing plant, according to automotive expert Lauren Fix, previously told FOX Business, according to IndexBox.

Japanese automakers, in particular, have large manufacturing footprints in the U.S.

New car buyers looking to buy Japanese autos and receive tax credit will have a large supply to choose from

It’s no secret that the U.S. auto industry has become dominated by foreign brands over the past few decades.

While General Motors still has the highest market share at 17% and Ford ranks third with a 13% market share, foreign models from Asia round out the top five, according to Cox Automotive data.

Toyota ranks second with a 15% U.S. market share, while the Korean brand Hyundai ranks fourth with an 11% share. Toyota’s fellow Japanese brand, Honda, ranks fifth in the market, with a 9% share.

Despite its home-court advantage, Stellantis ranks sixth, with an 8% share. 

Japanese auto manufacturers produced 3.28 million vehicles in the U.S.

Toyota sold over 2.3 million vehicles in the U.S. in 2024, a 3.7% year-over-year increase. Between April 2024 and March 2025, the company built 1.96 million units in the U.S.

Honda, Subaru, Nissan, Mazda, and Toyota combined employed nearly 75,000 manufacturing employees in the U.S. last year, so there is a good chance your favorite Japanese vehicle could be covered. 

Source: TheStreet

2026: Opportunity Favors the Prepared Dealer

Posted Wednesday, December 31, 2025

As 2026 begins, auto dealers are entering a market shaped by rising used-vehicle inventory, easing interest rates for qualified buyers, and increased expectations around transparency and compliance. These shifts create real opportunity for dealers who stay disciplined, efficient, and customer-focused—especially in the used market.

Newer off-lease vehicles are returning to inventory, helping stabilize pricing and improve selection. At the same time, consumer-protection updates, particularly in California, are reinforcing the value of clear pricing and documented processes. While affordability challenges remain, profitability continues for dealers who operate efficiently and leverage technology to stay ahead.

ASN tools are designed to help you turn these market changes into advantages—from smarter CRM workflows and AI-driven follow-ups to inventory, reporting, and compliance features that keep your team aligned and consistent.

2026 Action Items for Dealers

• Leverage Used Inventory Wisely
  Use accurate pricing, inventory tagging, and SEO-friendly listings to move aging units faster.

• Strengthen Lead Follow-Up
  Enable AI-generated CRM follow-ups to maintain consistent, timely communication with every prospect.

• Focus on Transparency & Compliance
  Review menus, disclosures, and documentation to align with evolving state and federal regulations.

• Optimize Operations
  Use automation and reporting to reduce manual work, improve accountability, and speed decision-making.

• Prepare for EV & Market Shifts
  Educate staff on used EV opportunities and adjust inventory strategies as demand evolves.

Dealers who commit to efficiency, transparency, and technology in 2026 won’t just adapt—they’ll lead. ASN is here to support you every step of the way.

Here’s to a strong start and a successful year ahead.

Q3 Negative Equity Record Is ‘Wake-Up Call’ for Auto Finance

Posted Wednesday, December 31, 2025

Analysts say a record nearly 1 in 4 vehicle trade-ins toward new-car purchases with negative equity carried more than $10,000 in debt

SANTA MONICA, CA — October 15, 2025 — More Americans are finding themselves upside down on their car loans, according to the car shopping experts at Edmunds. Q3 2025 data from Edmunds¹ shows that a growing share of owners are trading in vehicles worth less than what they owe — and the debt they are rolling forward is only growing:

• More than one in four new vehicle trade-ins are underwater, a four-year high. 28.1% of trade-ins toward new-car purchases had negative equity, up from 26.6% in Q2 2025 and 24.2% in Q1 2025. This is the highest share Edmunds has on record since Q1 2021, when 31.9% of new-car trade-ins were upside down.
• Americans with upside-down car loans owe more than ever. The average amount owed on upside-down loans hit a record $6,905 in Q3, edging past the previous high of $6,880 set in Q1 2025.
• Nearly one in three underwater car owners owe between $5,000 and $10,000 in debt — a new record high. 32.9% of negative-equity trade-ins fell into this range in Q3, up from 32.6% in Q2 and continuing a steady climb since last year.
• A record share of underwater car loans are carrying five-figure debt. Nearly one in four (24.7%) trade-ins with negative equity carried more than $10,000 in debt in Q3, surpassing the previous high of 24.6% set in Q4 2024. Another 8.3% of trade-ins with negative equity carried more than $15,000 in debt, up from 7.7% in Q2 2025.

Analysts warn of long-term consequences
"The sheer amount of debt consumers are carrying in their trade-ins should be a wake-up call," said Ivan Drury, Edmunds' director of insights. "Nearly one in three upside-down car owners owe between $5,000 and $10,000 — and a growing share owe far more than that. Much of this stems from shoppers trading out of vehicles too quickly, or carrying loans taken out during the pandemic car market frenzy, when prices were at record highs. Those choices are now catching up, making it far harder to buy again without piling on even more debt."

Rolling debt drives higher monthly payments
To highlight the financial effect of rolling negative equity into a new vehicle purchase, Edmunds analysts compared the costs for consumers who financed a new vehicle involving a trade-in with negative equity in Q3 against the industry average for all financed new vehicles. The average monthly payment for buyers who rolled negative equity into a new loan was $907 in Q3, down slightly from Q2's high of $915 and $140 more than the overall industry average monthly payment of $767. They also financed $11,164 more than the typical new-vehicle buyer.

Edmunds advice for car owners and shoppers
While Edmunds analysts say the growing amount of negative equity underscores broader affordability challenges, they also note that consumers still have opportunities to make smarter financial moves — especially if they understand where they stand before trading in or taking on new debt.

"For many car owners, there's no quick fix for being underwater. It's about minimizing how much deeper you go," said Joseph Yoon, Edmunds' consumer insights analyst. "If you can, wait until you've paid down more of your balance before trading in. But if you do need to replace your car, make sure your next purchase fits your budget, not just your needs. The right vehicle choice can prevent a short-term decision from becoming a long-term setback."

Edmunds analysts also advise that before turning in a vehicle, consumers should review their loan paperwork for add-on products like extended warranties, service contracts, or wheel-and-tire protection. Canceling these agreements, even if the refund is prorated, can help chip away at the amount owed on the loan and slightly improve the payoff-to-value balance.

Shoppers can use Edmunds' free appraisal tool to determine their current vehicle's value, and track its historic value over time here on Edmunds. For consumers underwater on their car loans, Edmunds offers expert advice on what to do in this guide.

Edmunds Q3 Negative Equity Data

Year	Share of New Vehicles Purchased with a Trade-in	Share of Trade-ins with Negative Equity	Average Amount of Negative Equity	Average Trade-in Age (Years)
2025	44.6%	28.1%	-$6,905	3.7
2024	43.2%	24.2%	-$6,458	3.6
2023	44.4%	18.5%	-$5,808	3.2
2022	45.2%	15.5%	-$4,894	2.9
2021	48.6%	19.4%	-$4,200	3.2
2020	48.3%	31.6%	-$4,964	3.5
2019	45.9%	34.0%	-$5,251	3.6

Source: Edmunds

Tricolor CEO received a $6.25 million bonus weeks before company’s bankruptcy

Posted Wednesday, December 31, 2025

Key Points

• Tricolor CEO Daniel Chu directed a deputy to send him $6.25 million in bonuses in August, weeks before the company filed for bankruptcy, U.S. prosecutors alleged.
• Chu is accused of engaging in “systemic fraud” over roughly seven years, through 2025, according to an indictment unsealed on Wednesday.
• Prosecutors say Chu used some of the bonus money to buy a “multimillion-dollar property” in Beverly Hills, California.
• The abrupt collapse of Tricolor was one of a string of defaults that churned the U.S. banking industry this fall.

The CEO of subprime auto firm Tricolor directed a deputy to send him $6.25 million in bonuses in August as fraudulent schemes propping up the company unraveled, U.S. prosecutors alleged.

Daniel Chu, the CEO and founder of Tricolor, told Chief Financial Officer Jerome Kollar to send the final two payments of his $15 million annual bonus on Aug. 19 and 20, according to a federal indictment unsealed on Wednesday.

Chu, who is accused of engaging in “systemic fraud” over roughly seven years through 2025, used some of the money to buy a “multimillion-dollar property” in Beverly Hills, California, later that month, according to the filing.

Within days of Chu’s bonus payments, Tricolor put more than 1,000 employees on unpaid leaves of absence. By Sept. 10, the company filed for bankruptcy protection.

Lawyers representing Chu didn’t immediately respond to emails requesting comment on the allegations.

Prosecutors say Tricolor created about $800 million in “bogus collateral” — at Chu’s direction — by double-pledging the same assets for multiple loans and by having employees manually alter records to make delinquent loans appear eligible as collateral, according to the indictment.

The abrupt collapse of Tricolor was one of a string of defaults that churned the U.S. banking industry this fall, sparking concerns over underappreciated risks in the American financial system.

Around the time of the bonus payments, Chu allegedly knew his company was, in his own words, “basically history,” according to the filing.

Prosecutors cited “secretly recorded” calls in August that included Chu, his CFO and chief operating officer where the founder cast about for ways to keep the company’s lenders at bay.

While the indictment didn’t name the banks that Tricolor allegedly defrauded, JPMorgan Chase, Barclays and Fifth Third Bank have disclosed charges tied to the borrower.

After Tricolor’s lenders confronted Chu over questions about collateral pledged for loans, the CEO proposed a lie that some of the manipulated data was tied to a Trump administration loan deferment program, according to the indictment.

He then considered another tactic: blaming the banks for ignoring red flags as a way to extract a settlement and keep his company alive, prosecutors said.

In doing so, Chu allegedly compared Tricolor with Enron, the energy company that collapsed in 2001 after the discovery of accounting fraud.

“Enron obviously has a nice ring to it, right?” Chu said, according to the documents. “I mean, Enron, Enron raises the blood pressure of the lender when they see that.”

Source: CNBC

FTC issues warning letters on Consumer Review Rule violations

Posted Wednesday, December 31, 2025

The Federal Trade Commission Monday sent warning letters to 10 companies for potentially violating the Consumer Review Rule.

The Consumer Review Rule, effective October 2024, prohibits the publication of fake or false consumer reviews, providing compensation or incentives for positive or negative reviews, operating a company-controlled review website, suppressing negative reviews, and using fake social media indicators.

The letter sent to the companies, which were not publicly identified, stated the FTC had reason to believe they had violated the Consumer Review Rule and advised them to “immediately cease and desist” the conduct. The FTC press release about the letters said non-formal determinations were based on consumer complaints and information provided by the companies.

“Fake or false consumer reviews are detrimental to consumers’ ability to make accurate and informed choices about the products they are buying – something of particular importance during the holiday season,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, in a press release. “As consumers increasingly depend on online reviews, the FTC is committed to ensuring companies comply with this Rule.”

Violation of the rule can result in federal lawsuits and penalties of up to $53,088 per occurrence.

Source: NIADA