However, FADA has said that such fees would be added no matter who was selling the cars. "The new car dealer is the customer’s advocate when it comes to warranty work and service on a manufacturer’s product, and this bill will protect that.”įADA says dealerships create "fierce price competition," prevent manufacturer monopolies, protect consumers with recall, warranty, and repair service, allow for test driving, simplify the complicated process of buying and registering a vehicle, provide many local jobs and generate tax revenue.Ĭritics say dealerships add an unnecessary middleman, pressuring sales tactics and layers of markup and fees that can range from a few hundred dollars to $20,000 or more per vehicle over the Manufacturer's Suggested Retail Price (MSRP). 320.27." Why can't I buy a vehicle directly from a manufacturer in Florida?Īccording to Dave Ramba, a lobbyist for the Florida Automobile Dealers Association (FADA) which championed the bill, “The attempt by auto manufacturers to cut out the dealer would only result in higher prices and less customer service to the public," Ramba told Florida Politics. "Any person who is not prohibited by this section from owning, operating, or controlling a motor vehicle dealership may be issued a license pursuant to s. "A licensee, a manufacturer, an importer, or a distributor, or an agent of the licensee, manufacturer, importer, or distributor, or a parent, a subsidiary, a common entity, an officer, or an employed representative of the licensee, manufacturer, importer, or distributor, may not directly or indirectly own, operate, or control, by contract, agreement, or otherwise, a motor vehicle dealership for any line-make in this state if the licensee, manufacturer, importer, or distributor has manufactured, imported, or distributed motor vehicles of any line-make which have been or are offered for sale under a franchise agreement in this state with an independent person. For all other new vehicles, you have to go through a dealer. The new bill just clarifies and emphasizes what was already on the books. Not unless it's a Tesla or other new brand, no, but you couldn't before, either. Can I buy a new car, truck or SUV directly from the manufacturer in Florida? The bill, which goes into effect July 1, also restricts a manufacturer's ability to control what a dealership can charge you and prevents automakers from using inventory to incentivize lower prices. Manufacturers that didn't already have a dealership agreement in the state before the law are exempt, which includes Tesla and presumably other new EV brands such as Lucid, Rivian and Polestar.Įlon Musk is Tesla's founder and CEO, and he owns Twitter, where the governor announced his presidential campaign during a glitch-ridden Twitter Spaces event in May. HB 637, "Motor Vehicle Dealers, Manufacturers, Importers, and Distributors," bans most direct-to-consumer vehicle sales if the automaker has ever sold any model through a franchise in Florida before (i.e. Ron DeSantis signed legislation further nailing down the ban on most automakers from selling their vehicles directly to you without going through a dealer, with a notable exception: Tesla. The language in Florida's law leaves the door open for companies that don't have franchise agreements to sell directly, no fuss no muss.If you're in the market for a new car in Florida and really hate haggling, you're out of luck. However, those laws generally block all brands from direct-to-consumer sales. This puts the kibosh on legacy automakers selling directly to consumers through factory stores, and such laws are found in other states. ![]() ![]() To paraphrase that, manufacturers cannot have a license to directly own a dealership if said manufacturer already has franchise agreements in place. ![]() A licensee, a manufacturer, an importer, or a distributor, or an agent of the licensee, manufacturer, importer, or distributor, or a parent, a subsidiary, a common entity, an officer, or an employed representative of the licensee, manufacturer, importer, or distributor, may not directly or indirectly own, operate, or control, by contract, agreement, or otherwise, a motor vehicle dealership for any line-make in this state if the licensee, manufacturer, importer, or distributor has manufactured, imported, or distributed motor vehicles of any line-make which have been or are offered for sale under a franchise agreement in this state with an independent person.Īny person who is not prohibited by this section from owning, operating, or controlling a motor vehicle dealership may be issued a license pursuant to s.
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