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Access to auto loans gets easier, VW brings back physical buttons, BMW temporarily absorbs tariff impacts

Go deeper: 5 min. read

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Welcome to The Weekly, your go-to roundup of the top five auto industry headlines of the week. Let’s dive in.

1. Car loans get easier to secure—even for riskier borrowers

Per Cox Auto, February had the highest level of auto loan access since December 2022.

By the numbers:

  • The average approval rate is up 10 basis points (bps), and subprime loans grew by 150 bps.

  • Meanwhile—longer loan terms became more common (up 50 basis points).

  • Down payments inched up, and more borrowers are carrying negative equity. However—auto loan rates fell by 36 bps.

Why it matters: Lenders are lowering rates and approving more loans—even for riskier borrowers. But a growing share of late-stage delinquencies indicates this approach may not be sustainable in the long term.

A CDG follower on X named Tim pretty much nails it—lending is one big balancing act.

And given the current economic headwinds—drivers are holding on to their older cars for longer, leading to more trips to dealership service departments...

2. Dealership service satisfaction holds strong despite repair delays—study

Dealership service satisfaction remains high, but a new J.D. Power study reveals growing frustrations beneath the surface.

The reasons? Customers trust dealerships' expertise, yet longer wait times and incomplete repairs are eroding that goodwill.

Yet—simple tweaks make a difference. For example—customer satisfaction jumps when recalls are bundled with routine maintenance.

Big picture: With fixed ops profitability more crucial than ever, dealers who smooth out these friction points will have a serious edge in retaining customers.

But dealers are still faced with “uncontrollables”—like what technology an automaker decides to put in its vehicles...

How much are your phones costing you?

Let’s face it, even the best-run stores miss 15-30% of calls from customers who need to schedule service, want to set a test drive, or have a question after hours. In today's always-on market, those missed connections translate directly to missed revenue as customers move on to the next dealership.

That’s where Mia steps in.

Mia is your dealership's 24/7 AI super employee who never sleeps, never calls in sick, and never misses a call. She instantly answers calls, checks your inventory, books appointments, and notifies your team—all while sounding naturally conversational—no long pauses or “press 2 for Spanish” necessary.

The results speak for themselves:

  • 30% average appointment booking rate for Service calls

  • $50K average monthly revenue generated from Mia-set Sales & Service appointments

  • 70+ hours of staff time saved monthly, allowing your team to focus on closing more deals

Tech-forward dealers across the country are discovering that Mia delivers immediate ROI from day one. Mia fully integrates with your systems, so there’s no complex setup—just more revenue and happier customers.

Visit mia.inc to request a demo today and get your first month FREE when you mention CDG!

3. Volkswagen reintroduces physical buttons as touchscreen fatigue grows

Volkswagen is bringing back physical buttons, ditching the frustrating touch-sensitive controls that have annoyed drivers for years.

Driving the news: Starting with the ID. 2all, future VW models will have actual buttons for key functions like volume, climate, and hazard lights—because, as VW’s design chief put it, “It’s a car, not a phone.”

And it's likely a smart move. A J.D. Power study found that infotainment touchscreens are a huge factor in declining vehicle satisfaction.

Why? Another commenter on X spells it out—the tech is slow and glitchy.

Many consumers have responded positively to this development—but VW is facing down a much more pressing problem—tariffs. However—one automaker is take preemptive measures...

4. BMW shields U.S. dealers from tariff impact until May 1

The latest: In an internal memo, the automaker announced it will “price-protect” vehicles already in the dealer pipeline, as long as they were scheduled for production before May 1, 2025.

The development comes as tariffs on models like the 3-Series and M2 from Mexico have jumped from 2.5% to 27.5%, adding pressure across the supply chain.

While BMW continues lobbying policymakers in D.C., it’s keeping business as usual, with vehicles still shipping and dealer allocations set for March 20.

This X commenter is one of many singing BMW’s praises for the decision.

But if these tariffs extend beyond a few weeks—the impact will only compound...

Stay informed in just 5 minutes a day.

CDG Bites brings you sharp insights, delivered every weekday in audio.

5. Auto industry faces 3 possible paths as tariffs take effect—report

Now that 25% tariffs on Mexico and Canada are in effect, the auto industry is weighing the fallout.

A new S&P Global Mobility report lays out three potential scenarios:

  • Most likely: A 50% chance of a six-to-eight-week disruption, delaying product development and manufacturing. However—most sales and production recovered in 12 months.

  • Moderate risk: A 30% chance of tariffs lasting two weeks or less, potentially costing over 20,000 vehicles a day.

  • Worst-case: A 20% chance of long-term tariffs cutting U.S. auto sales by 10% for years.

The biggest issue? Uncertainty. Only GM, Ford, and Stellantis have the capacity to absorb extra production—and shifting supply chains is neither quick nor cheap.

Have a tip for our editorial team? Send us your scoop at [email protected].

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That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

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Thanks for reading. Hit reply and let me know if you found The Weekly valuable or have any feedback. I’ll see you next weekend.

— CDG

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