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  • GM Will Pay $220 Million After Selling Drivers’ Private Data to Insurers

    GM Will Pay $220 Million After Selling Drivers’ Private Data to Insurers

    General Motors will pay $220 million to settle claims that it illegally sold drivers’ private driving and location data to third parties, who then sold it to insurance companies.

    The settlement, announced on Thursday, October 29, resolves claims by the attorneys general of 35 US states and the District of Columbia. It is one of the largest privacy settlements ever involving a carmaker, and it is a warning to every company that collects data from connected cars.

    What Happened

    The case centred on GM’s Smart Driver programme, which ran from 2016 to 2024. GM enrolled millions of drivers in the programme, which tracked how they drove: how many trips they took, when each trip started and ended, how often they braked hard or accelerated quickly, and whether they went over the speed limit.

    According to the states, GM sold that information to data brokers under contracts that said the data was to be used for insurance products. The brokers then sold it to insurers, who could use it to set premiums — and in some cases, raise them.

    The sharpest allegation was about consent. The states said more than 370,000 drivers were told they were not enrolled in Smart Driver when they actually were. Their data was sold anyway, and they were later unenrolled without being told about the error.

    GM did not admit wrongdoing in the way these settlements are usually structured, but a GM spokesperson said the agreement “addresses Smart Driver, a product we ended in 2024, and reinforces steps we’ve taken to strengthen our privacy practices.”

    Why It Happened

    Smart Driver was presented as a tool to help people drive more safely. The problem, according to the states, was what happened next. Drivers were not clearly told their detailed driving records would be sold for insurance use.

    The issue first became widely known in 2024, when The New York Times reported on the practice. After that reporting, GM discontinued Smart Driver. But the state investigations continued, and they ended with this $220 million settlement.

    The settlement also follows two earlier deals on the same issue. In January 2025, GM agreed with the US Federal Trade Commission not to share vehicle location and driver behaviour data with consumer reporting agencies for five years. In May 2026, GM paid $12.75 million to settle a separate California investigation into selling driver data to two data brokers.

    Why It Matters

    Your car now collects far more data than most people realise. Modern cars track location, speed, braking and even driving times. That data is valuable — insurers want it because it helps them guess who is a risky driver, and data brokers are happy to buy and sell it.

    This settlement sets a clear rule: a company cannot collect that kind of personal data and sell it on without clear, affirmative consent. “Affirmative express consent” means the driver must actively agree, not just fail to opt out of a buried setting.

    For drivers, the practical point is simple. If a car app or feature asks to track your driving, check what it does with the data and who it shares it with. A feature described as a safety tool may also be a data product.

    What Happens Next

    Under the settlement, GM must limit the driving data it collects, get drivers’ express consent before collecting or sharing driving and location data, and run a comprehensive data privacy programme with internal and outside assessments. It must also train and oversee dealerships so drivers are not signed up without agreeing.

    The money goes to the states, not directly to individual drivers. Arizona, for example, will receive $5.9 million, Pennsylvania nearly $9 million, and Colorado about $7.2 million. Drivers who believe their premiums rose because of Smart Driver data should not expect a cheque from this deal — the settlement names no individual payments.

    Other carmakers will be watching closely. If they run similar connected-car programmes, they now have a very expensive example of what happens when consent is unclear.

    Final Thoughts

    Cars used to be machines you owned. Now they are also computers that watch how you drive. That can be useful — for safety features, for maintenance, for finding your car. But the GM case shows the other side: once your driving record leaves the car, you lose control of who sees it and what they do with it. The $220 million price tag is GM’s bill for forgetting that drivers, not data brokers, should decide.

    Key figures:

    • Settlement: $220 million, announced October 29, 2026
    • Claimants: attorneys general of 35 states and the District of Columbia
    • Programme: Smart Driver, 2016 to 2024, millions of drivers enrolled
    • Drivers wrongly told they were not enrolled: more than 370,000
    • Earlier deals: FTC agreement (January 2025, five-year sharing ban); California settlement (May 2026, $12.75 million)
    • State shares (examples): Pennsylvania nearly $9 million, Colorado about $7.2 million, Arizona $5.9 million

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: CNBC business coverage of the GM settlement (October 31, 2026 edition); Reuters report on the settlement (via https://northlandnewsradio.com/2026/10/29/gm-to-pay-220-million-to-settle-allegations-it-violated-consumers-privacy/); Arizona Attorney General announcement (https://www.azag.gov/press-release/attorney-general-mayes-announces-settlement-gm-company-pay-220-million-sharing)

    Related: Cheaper Cars Are Selling Much Faster — But They Are Getting Harder to Find

  • Cheaper Cars Are Selling Much Faster — But They Are Getting Harder to Find

    Cheaper Cars Are Selling Much Faster — But They Are Getting Harder to Find

    Introduction

    If you are shopping for a cheaper car in America right now, you are not alone — and you may be too late. New data shows affordable cars are selling much faster than they were at the start of the year. The catch is that there are not many of them to buy.

    What Happened

    Data from Edmunds, released October 30, 2026, shows that cars priced between $20,000 and $29,999 sold 20% faster in the third quarter than in the first quarter of 2026. Cars priced $30,000 to $39,999 sold about 18% faster, and cars priced $40,000 to $49,999 sold nearly 12% faster. Vehicles priced below $50,000 generally spent fewer than 60 days on dealer lots. Every price segment above $50,000 took more than 60 days to sell.

    Edmunds’ director of insights, Ivan Drury, said dealers with affordable cars in stock are “definitely noticing” the stronger demand.

    But here is the strange part: sales in some cheaper segments actually fell. Compact car sales are down roughly 4% since the beginning of 2026, and compact SUV sales are down nearly 8%, according to Cox Automotive. Cars are selling faster, but fewer of them are being sold in those segments — because there are not enough of them on the lots.

    Why It Happened

    Affordability is the main driver. The average new vehicle listed for $49,726 in September, according to Cox Automotive. With prices that high and fuel costs rising, buyers are hunting for anything cheaper. Many buyers of these fast-selling cheaper cars are first-time buyers or people buying a second car for the family, according to Edmunds.

    Supply is the other half of the story. The popular Toyota RAV4 has been in short supply as Toyota shifts production to its Kentucky factory and moves the lineup to hybrid engines. Ford discontinued the Escape to make room for an upcoming midsize electric pickup. When popular affordable models disappear or run short, the ones that remain sell quickly.

    Related reading: Ford Beats Earnings Expectations, but Warns 2027 Profit Will Be Flat

    There is also a structural shift. No compact passenger sedan is sold by an American manufacturer anymore, according to CNBC. Most are Japanese or Korean, with some German models such as the Volkswagen Jetta and Golf hatchback. The Honda Civic, Toyota Corolla and Jetta all start below $25,000, but the cheapest American options start higher — the Ford Mustang starts at $33,490 and the Tesla Model 3 at $34,990.

    Key Figures

    • $20,000–$29,999 cars: sold 20% faster in Q3 than Q1 2026
    • $30,000–$39,999 cars: sold about 18% faster
    • $40,000–$49,999 cars: sold nearly 12% faster
    • Under $50,000: fewer than 60 days on dealer lots; over $50,000: more than 60 days
    • Average new-vehicle listing price in September: $49,726 (Cox Automotive)
    • Compact car sales: down about 4% in 2026; compact SUVs: down nearly 8%
    • About 1 in 4 financed buyers took an 84-month loan in Q3, a record; nearly 3 in 10 Q3 trade-ins had negative equity

    Why It Matters

    This trend shows the pressure on ordinary buyers. When a car costs nearly $50,000 on average, people stretch to afford one — and the numbers prove it. Roughly one in four buyers who financed a purchase in the third quarter took out an 84-month loan, a record. That is seven years of payments. Nearly three in ten trade-ins in the same quarter carried negative equity, meaning buyers owed more on their old car than it was worth.

    Long loans and negative equity are warning signs. They mean buyers are paying more, for longer, to own cars that lose value. Incentives from dealers averaged about 6.6% of the average transaction price as of October, which helps a little, but it does not fix the basic problem: affordable cars are scarce.

    What Happens Next

    Analysts say the fourth-quarter data will matter a lot. Cox Automotive’s Mark Strand cautioned that the market should be graded “on a curve” until that data arrives, because supply problems may be distorting the picture. If automakers bring back more affordable models — or if supply of models like the RAV4 recovers — the fast-selling trend could ease. If not, buyers will keep competing for a small pool of cheaper cars, and loan terms could stretch even further.

    Final Thoughts

    Faster sales sound like good news, but in this case they are a sign of scarcity, not strength. When cheap cars sell in days and expensive ones sit for months, the market is telling us something simple: most people want to spend less, and they cannot find enough cars that let them. Until supply improves, affordable cars will stay the hardest ones to buy.

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: CNBC, “Cheaper cars are selling considerably faster than at the beginning of the year” (https://www.cnbc.com/2026/10/30/cheap-cars-selling-fast.html); Edmunds Q3 2026 data and Cox Automotive figures as reported.

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