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Welcome to The Weekly, a roundup of the top five auto industry headlines of the week.
Car Dealership Guy founder, CEO shares 9 auto retail predictions by 2029
Fresh off Digital Dealer, Car Dealership Guy Founder and CEO Yossi J. Levi is thinking about where the industry is headed and how quickly it's getting there.
Here are his nine predictions for where the industry will be in the next 24 months:
China begins its first pilot of U.S. auto retail.
AI eliminates 50%+ of dealership BDC jobs.
A 20-person dealership sells 200 cars a month.
Dealer software stacks shrink from 30 vendors to 10.
Agent-to-agent car buying becomes the standard.
A 10-person automotive startup reaches a $1B valuation.
Dealers begin opting out of OEM co-op programs en masse.
Technician productivity doubles without technicians working more hours.
The first major dealership runs nearly 24/7.
Under each one, we break down how it could play out and what it means for dealers.
More EV buyers return to gas-powered vehicles as powertrain preferences shift
A new report reveals that while EV buyers in the U.S. have largely remained loyal to the electrified powertrain, a growing number are returning to gas-powered vehicles for their next purchase.
The details: Through June 2026, 52,154 EV households in the U.S. returned to the market and acquired a gasoline vehicle, excluding hybrids and plug-in hybrids—a 15.9% year-over-year increase, according to Mobility Global.
Among non-Tesla EV households, the share shifting from EVs to gasoline vehicles rose from 38.9% through June 2025 to 44.4% through June 2026.
Why it matters: The shift creates a growing opportunity for dealers to retain or conquest former EV buyers with gas-powered and hybrid alternatives, making a diverse inventory increasingly important as more consumers reconsider which powertrain best fits their needs.
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Dealer demand for franchises remains strong — but it is becoming increasingly selective.
The Top 150 largest dealer groups own just 27% of total dealerships, but 51% of luxury dealerships.
Presidio highlights how scarcity, brand strength and other factors are contributing to a widening valuation gap in today’s dealership M&A market.
On top of FTC rules, California dealers rush to comply with CARS Act
For California car dealers, new regulation tied to the Combating Auto Retail Scams (CARS) Act, covering price transparency, documentation, and invoking a new return period on used vehicles, kicks in Thursday, Oct. 1.
“The California Cars Act is probably the most significant change to the rules governing car sales and the buying process in 20 years since the Car Buyers Bill of Rights back in ‘06,” California New Car Dealers Association President Brian Maas told CDG News. “It's going to require dealers to make significant changes to how they operate.”
Driving the news: Almost a year ago, California Gov. Gavin Newsom signed into law the CARS Act, which was patterned after the Federal Trade Commission’s CARS Rule, which was vacated in January 2025 after federal courts ruled the agency did not follow proper notice requirements.
OEM incentives tick up across ICE, hybrid models
Average incentive spend topped $3,500 in September, a 7.3% jump from the previous year, as OEMs pushed to get buyers into the market.
JD Power’s U.S. Automotive Forecast showed the average incentive for the month was $3,574, up $200 vs. August. The incentive for ICE and hybrids increased year over year from $797 per unit to $3,319.
Meanwhile, EV incentives dropped 21.7% or $2,450, to $8,829 per car.
U.S.-built vehicle sales slide in Canada as trade tensions reshape auto market
The fallout from U.S. tariffs on Canada is coming into view as trade tensions between the two countries intensify.
The details: Since the U.S. began imposing restrictive tariffs on its northern neighbor, the share of new U.S.-built vehicles sold in Canada has dropped significantly, according to Fortune.
About 28% of new-vehicle sales in Canada in the first half of 2026 were U.S.-built, down from roughly 35% in the first half of 2025, according to JD Power Canada data.
Survey finds drivers change payment method before switching dealerships over card surcharges
