Dealer News – March 2025

Just when you think you’ve caught up with fraud prevention, a new disrupter enters the scene. The latest security threat? Generative AI and fraud - especially as AI is used to aid synthetic identity fraud. This new advance in fraud might not be widespread yet, but there has already been a significant uptick in fraud since recent advances in generative AI.

Emphasizing the importance of coordination between sales and collections. When teams are disjointed, it leads to inefficiency and financial struggles. All staff, from inventory buyers to salespeople, must adopt procedures that support successful collections, focusing on collecting payments rather than just selling cars.

The independent auto dealership industry is shifting, with Buy-Here-Pay-Here (BHPH) dealerships thriving due to flexible financing, while traditional retail dealers selling vehicles over $15,000 are struggling with profitability amid rising prices. To succeed, retail dealers should diversify financing, optimize inventory, and enhance digital marketing.

Dealerships face significant risks from litigation, especially from class action lawsuits, which can be financially devastating. It is crucial for these businesses to prioritize compliance and adopt sound practices, as neglecting these areas can lead to severe consequences.

Compliance is essential for protecting consumers and dealerships amid increasing regulatory scrutiny. The FTC and CFPB are targeting smaller dealers, making understanding key regulations crucial. Knowledge of rules like the Used Car Rule is vital for safeguarding your business.