America’s Pandemic Car Bubble Is Now Trapping Buyers in Debt
Doug Horner has seen plenty of customers walk into his northeast Ohio Mercedes-Benz dealership who owe more on their trade-ins than those cars are worth. But being $40,000 underwater on a pickup truck is a scary sign of a growing trend. He tells the Wall Street Journal that a prospective buyer recently sought to trade in a Ford F-150 Lightning for a Mercedes GLE Coupe, but that potential customer owed about $87,000 on the pickup truck. Horner estimates the Ford pickup truck was worth about $47,000—leaving the buyer well underwater. “This is a battle that we’re fighting every day,” Horner said in an interview. About 30% of borrowers in the first quarter who traded in a car to buy a new one had negative equity, whereby they owe more on their loan than their car is worth, according to car-shopping website Edmunds. Those borrowers owed about $7,200 on average before getting a new loan, a 42 percent jump compared with the same period five years prior. For more on the trend, and what’s causing it, click here.
Dealerships Lose Ground to Quick Lubes as Service Prices Climb Faster Than Those of Competitors
Dealership service departments are losing customers to quick lube shops — and pricing strategy is largely to blame, according to new data from global research and consulting firm Ducker Carlisle. “The quick lubes are what everybody should be worried about,” Nate Chenenko, a principal and leader of global benchmarking activities at Ducker Carlisle, told Automotive News. Dealerships made less money in 2025 than in 2024 and “quick lubes made more,” he said. The driving factor sending more customers to quick lube shops is price, he said. “Prices at quick lubes are being raised at a slower rate than dealerships. Even comparing the complex jobs that dealerships are doing, they are [still] raising their prices more quickly than any other [auto repair] sector,” Chenenko said. Independent repair facilities, quick lube shops and tire chains all gained market share from January 2025 to January 2026 — primarily at the expense of dealerships, according to Ducker Carlisle. For the full story, including how dealers can improve customer retention, click here.
Here Are the Best Debuts From the 2026 Beijing Auto Show
China’s auto industry has been on an absolute tear, with waves of new brands rolling out eye-catching models and dominating the headlines. This year’s Beijing Auto Show, which is held every other year in rotation with Shanghai, featured more than 100 vehicle debuts from both domestic and global players. Motor Trend has rounded up the standout debuts of the show. Start with the Li Auto L9. This Range Rover rival was one of the biggest surprises in Beijing. A six-seat, three-row SUV, it uses the kind of high-end paint technology you’d expect from a Mercedes-Maybach, yet it’s slated to start at under $75,000 when it hits the Chinese market next month. Like the Li Auto L9, the XPeng GX targets buyers looking for a premium three-row SUV with serious presence. This full-size model, starting at around $60,000, is offered as either a fully electric vehicle or an extended-range EV, with claimed range spanning roughly 260 to an eye-popping 1,000 miles depending on the configuration. Click here for more impressive Chinese debuts.
2026 Subaru Outback: Rugged Evolution Meets Everyday Practicality
The 2026 Subaru Outback enters the new model year with a clear shift in identity. According to CBT News, Subaru has pushed this longtime wagon-based favorite further into SUV territory, giving it a tougher design, a more refined interior, and upgraded technology while staying true to its practical, all-weather roots. The changes are not just cosmetic—they address key areas that buyers care about most, including comfort, usability, and safety. The first thing you notice is the new design. Click here for video. The Outback now has a more upright grille, vertically stacked LED headlights, and a boxier profile that gives it a stronger, more rugged presence on the road. Subaru leaned into functionality here, and it shows. Inside, Subaru delivers one of the most significant upgrades in this redesign. The cabin is quieter, more refined, and far more user-friendly. The new tech setup includes a 12.3-inch digital gauge cluster and a 12.1-inch touchscreen, both of which are easy to read and responsive. For the full review, click here.
Porsche Sells Stakes in Bugatti-Rimac and Rimac Group to American Group
Porsche agreed to sell its ownership stakes in both the Bugatti-Rimac joint venture and the broader Rimac Group, the company announced Friday. Car and Driver reports that Porsche currently holds a 20.6 percent stake in the Rimac Group, as well as a 45 percent stake in the Bugatti-Rimac joint venture formed in 2021. Ownership will pass to a consortium led by the U.S.-based HOF Capital that also includes the Abu Dhabi–based BlueFive Capital as its largest investor. Porsche currently owns a 45 percent stake in Bugatti-Rimac, the joint venture it helped form to run the hypercar manufacturer in 2021. The sale will also include Porsche’s 20.6 percent ownership in the Rimac Group. The decision to sell doesn’t come as a huge surprise. Porsche reported more than $5 billion less in profits in 2025 than in 2024, sending the automaker scrambling for the rudder. Part of righting the ship, apparently, means selling off assets. Click here for the full story.
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