Auto dealer trade association executives are meeting with members of Congress this week, trying to end a taxation practice that threatens to upset the way that the subprime auto industry operates.

At issue is the way dealers account for money they get for the cars they sell. The Internal Revenue Service requires dealers to pay taxes on the entire amount of a car loan when it is made-despite the fact that dealers get only part of that money up-front from the lender.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.