A new year rarely brings “new” issues for dealers—it brings familiar ones with higher stakes. Regulators keep looking at advertising, fees, and data protection. Employment claims remain a volume business for plaintiffs’ firms. OEM demands get bolder. The dealerships that do best in this environment are the ones that treat compliance and documentation as a profit-protecting discipline, not a once-a-year project.
Below are three areas dealers should focus on early in 2026—compliance, operations, and franchise relations—with practical steps from Charapp & Weiss that you can put into motion now.
Compliance: The Basics Still Drive Enforcement
I-9 readiness. Tighten I-9 completion practices, follow retention rules, and use a consistent correction protocol. Periodic internal spot checks help prevent “missing form” problems that invite scrutiny.
Advertising discipline. Finance ads with “trigger terms” require careful follow-on disclosures. Disclosures should clarify—not contradict—your advertised price or terms. Also make sure third-party listings match your website and in-store messaging.
Pricing integrity and add-ons. The core principle is simple: sell at the price advertised. Practices that condition the advertised price on financing or the purchase of add-on products are easy targets for regulators. Voluntary protection products should be clearly priced, clearly optional, and backed by clean documentation.
Data protection and Safeguards compliance. Assume ongoing attention from federal and state regulators. Make sure your GLBA-related privacy and security program is implemented in practice—not just on paper—and revisit vendor oversight and access controls in light of recent industry breaches.
Fair credit and product sales consistency. A written, enforced fair credit policy—paired with standardized processes for optional products—reduces exposure to discrimination claims and inconsistent practices that become litigation fuel.
Clean deals. Forms don’t protect you if they aren’t used correctly. Use deal checklists, audit deal jackets periodically, and confirm your forms and disclosures match current requirements.
Operations: Where Problems Become Claims
Employment risk controls. Plaintiffs’ firms continue to target wage-and-hour and employment practices. Updated handbooks, signed acknowledgments, consistent complaint handling, licensing compliance (where required), and well-documented personnel files are foundational—especially when litigation comes later.
Spot-delivery safeguards. Follow state spot-delivery rules precisely where they exist. Use clear conditional delivery disclosures, and if you must unwind a deal, handle trades, down payments, and repossession steps in strict legal compliance.
Cybersecurity and wire fraud. Hackers do not discriminate by dealership size. Layer technical protections with “old school” controls—password discipline, limiting risky browsing, and verifying wire instructions by calling a known number (not relying on emailed instructions). Review insurance coverage for cyber events and business interruption.
Recall workflows (new and used). New vehicles with open recalls should be grounded with a documented process that prevents delivery. For used inventory, check recall status consistently, repair when possible, and disclose open recalls when a remedy isn’t available. If an OEM issues a stop sale, treat it seriously—for liability exposure and franchise relationship consequences.
Supplier and vendor agreements. Audit DMS, vendor, and insurance agreements now—before a buy-sell, franchise loss, or operational change forces decisions. Watch term length, rollovers, termination costs, and choice-of-law/venue provisions. Establish internal rules for review and signature authority.
Franchise Relations: Rights Aren’t Self Enforcing
Direct-to-consumer pressure and legal challenges. Manufacturers continue testing franchise protections and retail model boundaries. Dealers should monitor developments and be ready to respond strategically when changes affect rights or economics.
Association support matters. State and metro associations remain the front line on legislation and regulatory policy. Engagement—financial and personal—helps protect the legal framework dealers rely on.
Performance letters and threats. If you receive a critical performance notice, respond with facts and dispute the premise where appropriate—inventory realities, improper standards, PMA issues—and avoid language that concedes a breach.
Warranty audits, chargebacks, and reimbursement. Aggressive audits and large chargebacks have become routine. Dealers should evaluate whether audits comply with applicable protections, challenge excessive or unlawful findings through OEM or state processes where available, and tighten internal procedures and training to prevent repeat issues. For reimbursement submissions, follow state procedures closely and consider expert support where denials are common.
Know what you’re signing. OEM forms and “program documents” can shift costs and reduce protections. Understand what a document does before you sign, negotiate where possible, and keep a disciplined internal process for OEM requests.
Succession and ownership changes. Dealer agreements often require OEM approval before any ownership interest changes hands—even minority gifts or sales. Treat succession planning as a franchise-compliance issue, not just an estate-planning exercise.
Put a 2026 Action Plan on the Calendar Now
If your team is juggling competing priorities, start with the areas most likely to produce enforcement, litigation, or franchise leverage: advertising/fees and deal documentation, cybersecurity and wire controls, recall workflows, and a plan for responding to OEM performance and warranty pressure. Charapp & Weiss works with dealers nationwide on compliance program design, advertising and sales practice risk, warranty and chargeback disputes, and franchise enforcement strategies. If you’d like help stress-testing your current processes—or building a practical 2026 checklist your managers can actually follow—contact us to discuss a tailored approach for your dealership group.