In the News: Leasing's Role, Tech Perks, and Warranty Battles

We add StoneEagle’s F&I results to the leasing discussion, explore rewards for master techs, and follow the latest disputes over manufacturers’ warranty reimbursement practices.

By Gregory Arroyo

Leasing’s affordability appeal, a company-car benefit for master technicians, and new developments in warranty reimbursement caught our attention in Automotive News this month. We look at what those stories mean for dealerships, add StoneEagle’s lease data, and revisit the warranty battles we covered in July and September.

Where Leasing Fits Today

When monthly payments climb and terms stretch, leasing returns to the affordability conversation. In “New-car leasing gains ground as affordability tool in 2026,” Automotive News reporter Paige Hodder examines leasing’s role in making new vehicles more attainable and the prospect that it could become more important if borrowing costs rise. Citing Experian Automotive, she reports that new-vehicle lease payments averaged $148 less per month than loan payments in the second quarter.

That payment difference is also central to Tarry Shebesta’s commentary. The National Vehicle Leasing Association president points to the growing use of longer loans and argues that lease options belong earlier in the sales conversation, while customers are choosing vehicles and considering monthly payments.

Among all finance, cash, and lease deals tracked by StoneEagle, leases accounted for 11.1% of transactions in the second quarter of 2026, up from 10.5% a year earlier. Leasing’s share eased to 10.6% in July and 10.7% in August. Both months were also below year-earlier levels.

The longer view shows leasing remains a larger part of the business than in 2022, when it accounted for 7.7% of second-quarter transactions. Its share reached 11.5% in the same quarter of 2024 before slipping in 2025.

For the leases dealers completed, F&I PVR averaged $1,294 on 1.25 products per deal in the second quarter of 2026, compared with $1,319 on 1.32 products a year earlier. The more pronounced change was front-end gross, which fell from $307 per lease to negative $89. Together, those results brought total gross per lease down from $1,626 to $1,205.

Hodder also looks at F&I protections on lease deals. Bowman Chevrolet Finance Director Jonathan Burnicle told Automotive News that more precise lease inspections have increased customer interest in protection against charges at turn-in. Paint-and-fabric protection topped StoneEagle’s second-quarter lease results.

Lease wear-and-tear protection had a 9.0% penetration rate. Customers may also purchase individual protections or packages with overlapping benefits, which may be recorded under other product categories.

The mix extends beyond appearance protection, with maintenance and VSCs among the leading categories. Burnicle also told Automotive News that customers purchasing their vehicles at lease maturity create VSC opportunities, giving the dealership another protection conversation after the original lease transaction.

Retaining the People Who Service Those Vehicles

Shebesta’s commentary looks beyond the initial sale, noting leasing’s opportunities for service retention and future used inventory. Serving those returning customers also requires technicians, an area where dealerships continue to face a shortage.

In “Cars for Techs,” Automotive News reporter Alysha Webb describes Dalton Motors’ response: company vehicles for its four master technicians. Her report cites NADA’s estimate of an annual shortfall of about 37,000 trained technicians.

The benefit gives Dalton something tangible to offer recruits and gives younger technicians a visible reason to advance. About half a dozen technicians were pursuing master certification, and one recipient told Webb the program encouraged colleagues to earn the additional credentials.

The Latest on Warranty Reimbursement

The warranty reimbursement issues we covered in July and revisited in September have new developments. State reimbursement protections are being tested, from the guide used to calculate warranty labor compensation to surcharges intended to recover reimbursement costs. Dealer associations are also looking ahead to legislative efforts in 2027.

Eric Freedman reports that New York’s Wide World BMW sued the automaker Sept. 1, alleging warranty underpayments since November 2024 stemming from BMW’s rejection of the CDK labor-time guide it uses for customer-pay repairs. The dealership seeks unspecified damages. According to the complaint cited by Automotive News, BMW requires its own guide or another recognized alternative.

In Illinois, a two-year dispute involving 33 Volkswagen and Audi dealerships reached a final board ruling Sept. 10. Jack Walsworth reports that the state’s Motor Vehicle Review Board found Volkswagen’s quarterly warranty cost-recovery surcharges violated state franchise law and barred the fees. Dealers had paid millions in those surcharges, their attorney said. Volkswagen’s attorney had indicated the ruling would not end the dispute.

Colorado dealers are reporting reimbursement challenges of their own. In a July Colorado Auto Dealers Association briefing, the association said manufacturers were asking for more repair orders, inconsistently excluding certain repairs, and delaying approval of requests for higher reimbursement rates. CADA is considering whether to launch a legislative push in 2027 to address those practices.

In Texas, TADA President Darren Whitehurst says warranty and recall parts reimbursement remains a priority for the coming legislative session. After efforts in 2023 and 2025 fell short, the association is again seeking a formula for calculating those payments.

For dealers, securing reimbursement protections has not settled how those protections work in practice. That remains contested in New York and Illinois, while associations in Colorado and Texas look toward the next legislative session. At stake is how closely warranty compensation reflects the labor time and retail pricing those laws were intended to recognize.