Auto Loan Rates Stuck Near 7% Despite Fed Cuts — Subprime Borrowers Pay 18.86%
New car loan rates average 6.78-7% while used car loans hit 11-12%, with subprime borrowers paying up to 18.86% despite Fed cuts, creating $9,500 lifetime savings gap between credit tiers.
Gas Prices Surge 44% to $4.50/Gallon in May 2026 — California Hits $6.15, Every State Sees Double-Digit Increases
National gas average hit $4.50/gallon May 12, up 43.6% from $3.14 year earlier, with California reaching $6.15 and all 50 states seeing double-digit increases.
Trump's 25% Car Tariffs Push Prices Up $4,000-$6,000 — Supreme Court Rules Tariffs Unconstitutional, $20B Refunds Coming
Supreme Court ruled Trump's IEEPA tariffs unconstitutional, triggering $20B refunds starting April 20, but Section 232's 25% tariffs remain, pushing prices up $2,000-$6,000 per vehicle while insurance hits $2,759 (up 19% from Q4 2024) and 72% of Americans report negative impact.
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Dealer Markups Drop to 3-5% Over Invoice in 2026 — But Hidden Fees Replace MSRP Premiums
New car dealer markups dropped to 3-5% over invoice in 2026 ($1,000-$4,000 for mainstream brands, $4,000-$6,000 for luxury), down from pandemic-era $10,000+ premiums, but dealers now hide profit in mandatory accessories and protection packages adding thousands to final price.
BMW Admits Heated Seat Subscription Was a Mistake — But Other Automakers Double Down
BMW admitted its $18/month heated seat subscription was a mistake and stopped offering it after customer backlash, though the subscription remains available in markets outside the US where over 90% of buyers already order heated seats at purchase. BMW board member Pieter Nota confirmed the company won't offer heated seat subscriptions anymore but will continue focusing on software-based subscriptions for features like driver assistance and parking assist that require ongoing cloud services.
Massachusetts Right to Repair Law Reshapes Auto Industry — Maine Follows, Federal Bill Next
Massachusetts voters approved Right to Repair expansion with 75% support in 2020, requiring automakers to provide vehicle telematics data to owners and independent shops through standardized mobile apps, followed by Maine's 84% approval in 2023. The Alliance for Automotive Innovation challenged the law in federal court but lost in February 2025, with appeal pending at First Circuit.