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Hey everyone,
Big update!
We're hiring an Assistant Editor at Car Dealership Guy News.
This person will be on the front lines of news, analysis, and storytelling that sets the tone for an entire industry—reaching millions every month.
But last time we posted a role like this, it filled fast. So, don’t wait to throw your hat in the ring.
Full details can be found here.
— CDG
First time reading the CDG Newsletter?
Welcome to The Weekly, a roundup of the top five auto industry headlines of the week.
Tricolor bankruptcy sparks fraud probes, banks face heavy losses
This Tuesday, Car Dealership Guy broke the news that Tricolor, a subprime lender and one of the country's largest used car retailers, was facing imminent bankruptcy.
Within the next 24 hours, the paperwork was filed.
For context: After reports surfaced last week detailing mass layoffs at Tricolor, CDG News followed up with some inside sources and learned there were rumors spreading throughout the company alleging Tricolor's financials were in some serious hot water.
Now, more sources are coming forward claiming Tricolor mislead some of its banking partners including Fifth Third Bancorp and JP Morgan—leading to a fraud investigation by the U.S. Attorney’s Office in New York.
Dealer Matt Bowers is pursuing multi-state expansion, while keeping an eye on Carvana
Matt Bowers, president and CEO of Matt Bowers Auto Group, says ego once drove him to over-concentrate stores in a single market.
But today, instead of chasing regional dominance, Bowers is now diversifying across multiple platforms, with three pending transaction agreements in three different states.
He’s also leaning into brands others avoid, like Stellantis. Bowers has already acquired two Stellantis points, and currently has offers out on two more.
Bottom line: For Bowers, acquisitions have to make financial sense, add value for his people, and avoid unnecessary headaches, even if that means passing on deals in his hometown.
A word from our partner:
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Inventory shortages push more car buyers to order cars still in transit — report
Car buyers rushed to close deals in August, but thinning inventory is reshaping the overall transaction experience.
Last month, CDK Global’s Ease of Purchase score climbed to 89%, up from 86% in July, yet in-stock availability slid to 43% from 53%.
With fewer cars on lots, purchases of vehicles still in transit jumped to 29% from 19%.
As a result: Test drive and delivery satisfaction took the biggest hits as dealers struggled to get customers behind the wheel.
Big picture: Dealers benefited from buyer urgency ahead of tariffs and expiring EV tax credits, but limited supply strained core parts of the process.
‘If you have an electric vehicle in your inventory, get rid of that thing,’ says Sen. Bernie Moreno (R-OH)
Senator Bernie Moreno (R-OH), a former dealer of 30+ years, says the path forward for auto retailers navigating a volatile market comes down to fundamentals.
Speaking on Daily Dealer Live, Moreno recommended that dealers focus on used car velocity, ordering the right inventory, and taking care of both customers and employees.
He also urged dealers not to hesitate in cutting poor performers, especially any EVs before the September 30 tax credit deadline.
Looking ahead: Moreno sees AI as the next big shift for dealers (particularly in BDCs and customer communication) and cautions not to lag behind as the technology becomes standard.
FTC’s Holder Rule interpretation adds new pressure on auto dealers, lenders
The FTC’s Holder Rule (which has long a quiet backdrop in auto finance) is back in focus as recent legal shifts widen dealer and lender exposure.
The details: For decades, liability was capped at what a consumer had already paid under a contract.
But in 2022, the FTC reversed course, opening the door for attorneys’ fees to be recoverable.
California’s Pulliam decision confirmed it, meaning claims can now far exceed the borrower’s payments.
That change is putting finance companies on alert, since liability flows upstream. And it puts dealers under sharper scrutiny, with complaint handling, disclosures, and deal jackets now potential flashpoints for litigation.
Missed yesterday’s episode of Daily Dealer Live?
Presented by:
Automotive AI cage match with top CEOs
Featured guests:
Brian Hoang, CEO of Mia
Eric Rea, CEO of Podium
Tasso Roumeliotis, CEO of Numa
Monik Pamchea, CEO of Toma
The hidden risk: Why post-warranty service remains dealers’ biggest missed opportunity
Auto lenders are tightening loan access—but some dealers are taking matters into their own hands
