Posted on 06/14/2023 1:20:22 PM PDT by conservative98
It’s a good day for auto dealers in the Sunshine State, and not so great for motorists who’d prefer a more direct route for buying a new coupe, sedan or SUV. Gov. Ron DeSantis signed a measure (HB 637) banning most direct-to-consumer vehicle sales, solidifying the future viability of car-selling operations across the Sunshine State.
The measure, championed and authored by lobbyists representing the Florida Automobile Dealers Association (FADA), prohibits automakers from selling vehicles directly to buyers.
That restriction, which goes into effect July 1, was considered a direct threat to the business model of Tesla, an electric vehicle (EV) manufacturer that — unlike other car companies — sells its vehicles online and through retail locations rather than third-party dealers.
But as Florida Politics noted previously, lobbyists, including Taylor Biehl and Jeff Sharkey of Tallahassee-based Capitol Alliance Group, hammered out a deal adding language to the bill that should keep Tesla galleries open.
The change confirms manufacturers are authorized to hold a franchise dealer license for direct sales of EVs if the manufacturer is not otherwise prohibited under federal law. That carve-out apparently does not extend to traditional manufacturers such as GM, Ford, Honda and Toyota, all of which now make battery-powered cars.
HB 637 — which cleared both chambers of the Legislature with just two “no” votes, from Democratic Reps. Anna Eskamani and Angie Nixon — also bars manufacturers from reserving or incentivizing the sale or lease of vehicles, including electric or hybrid cars.
Refusing to provide a dealer with a supply of new vehicles by model, mix or color equitable to that of other dealers is forbidden too.
So is requiring dealers to set vehicle prices at rates manufacturers recommend, locking in the long-standing but tedious tradition of buyers having to negotiate with salespeople whose individual profits benefit from ballooned price points.
Dave Ramba, a longtime lobbyist for FADA, said the measure will ensure there is competition among dealers, which leads to better prices and services for consumers.
“The attempt by auto manufacturers to cut out the dealer would only result in higher prices and less customer service to the public,” he said. “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.”
Some economists have said the opposite, advising that states should loosen strictures on direct sales of new vehicles if they want to help consumers get lower prices. That’s hardly a new position. In their 2017 study, “Retail Auto Sales: Tesla v. State Vehicle Franchise Laws,” Fiona Scott Morton of the Yale School of Management and Ann McDermott of Blue Sky Consulting Group noted that concern about experience dealer licensing dates back decades and is widespread in economics literature.
“By allowing their vehicle dealer licensing laws to be hijacked to protect incumbent franchised dealers and their manufacturers, states are picking winners and losers in the U.S. auto industry,” they wrote.
In 2014, while commenting on several New Jersey bills concerning direct-to-consumer auto sales, staff from the Federal Trade Commission said, “Our principle point is this: absent some legitimate public purpose, consumers would be better served if the choice of distribution method is left to motor vehicle manufacturers and the consumers to whom they sell their products.”
As detailed by investigative reporter Jason Garcia in his blog, Seeking Rents, more than 70 professors across the country signed an open letter in April 2021 urging calling the current sales arrangements in place “written for the mid-20th Century” and urging states to let manufacturers sell cars directly to the public.
Garcia also delved into the many donations auto dealers gave to Florida politicians, including more than $2 million to DeSantis in the last two years, $230,000 to political committees controlled by Senate President Kathleen Passidomo and $50,000 to Sen. Ben Albritton.
Jason Shoaf of Live Oak sponsored the measure in the House with support from fellow Republican Reps. Melony Bell, Patt Maney, Ralph Massullo and Brad Yeager.
One week after Shoaf filed the bill, car dealership chain Braman Motors gave $10,000 to his political committee, Protect Our Florida Values, and another $2,500 a week after that. He’s received more than $30,000 from auto dealers since December 2021.
Bryan Ávila carried the bill’s Senate analog (SB 712) with co-sponsorship from Ileana Garcia, a fellow Republican from Miami-Dade County. Avila’s political committee, Fighting for Florida’s Families, has accepted $18,000 from auto dealers since 2020. Garcia has received $9,000 from dealers through her campaign account, mostly from Braman Motors, and another $14,500 through her political committee, No More Socialism, over the same time span.
As the measure advanced during Session earlier this year, numerous lobbyists met with its sponsors to fine-tune its language. Among them: Teye Carmichael and Matt Bryan of Smith Bryan & Myers, who represented JM Family Enterprises; Brad Burleson of Ballard Partners, who represented FADA; Ron Book, who represented AutoNation; Travis Blanton of Johnson & Blanton, who represented the Alliance for Automotive Innovation; Adam Basford and Brewster Bevis of Associated Industries of Florida; and Fred Baggett of Greenberg Traurig, who represented Ford Motor Company.
I ne3d solid evid8nce that Trump won’t make the same mistakes again.
I just purchased a car. I told them I was paying msrp or walking out the door. I got msrp.
Direct to consumer. Contract with regional shops for warranty work
So you’re pointing out DeSantis is far less experienced in DC battles than Trump?
Less experienced in dealing with the swamp?
Unfamiliar with what he would face?
Yes I agree 100%
Good Governor though.
So get a loan for a new car and then pay it off very quickly?
Would there be a penalty by paying a loan off too quickly?
I think he observed where Trump had trouble.
What would stop Trump from pushing gum control if he did not have to run again?
—> I think he observed where Trump had trouble.
Then so did Trump.
But watching the World Series is not the same as being a World Series level player.
Toyota dealers around here are notorious for that. I’d really like to consider Toyota for my next vehicle purchase, but I’m not paying a premium like that out of principle.
Trump served as extremely pro2nd.
Have to deflect don't you? Is this the only thing you can do when DeSantis enacts bad law?
I wonder if DeSantis will support banning Bump Stocks, wait Trump did that.........
You’re comparing a worthless piece of plastic w/ a spring in it to manipulating the consumer into having to pay more for a vehicle.
But wait, his daddy, the richest man in the world, got special treatment....Imagine that.
But as Florida Politics noted previously, lobbyists, including Taylor Biehl and Jeff Sharkey of Tallahassee-based Capitol Alliance Group, hammered out a deal adding language to the bill that should keep Tesla galleries open.
He’s a distant second place to Pres Trump and is already taking care of “friends”.
In 2018, he had Feinstien giddy, he was saying, “I like going in and taking the Gun’s first, and i’m ok with putting an Assult Wepons Ban on the Tabel.
That was the lowest point of Trump’s Presidency, he was bargaining away our GOD given rights, while the Demon fienstien was giggling.
Didn’t Trump pardon the traitor Kurshner’s father and leave Assange to rot?
Did you read the part where only 2 people in the entire legislature voted against this? Even had he vetoed this, it would have been quickly and easily overturned. It’s rare when a bill get that kind of bipartisan support. I would assume the bill has things each side likes and things each side dislikes. It sounds like it has some good features as well as some bad ones. I don’t this this would be a slam-dunk veto for anyone, even Trump.
The last new car I bought I did just that. I got a $3000 extra discount for financing then turned around and paid the loan off on the beginning of the third month.
After someone totaled that very vehicle in a parking lot while I was shopping I went out and bought my first-ever used car and have been very happy with it.
We are retiring soon and if we can take back our country I will buy both of us one more new vehicle and will probably have to do the early loan payoff to get a decent deal. If we need anything after that it will be used.
Yup....sure did.
Nor did he pardon Snowden.
But I bet that pardon’s for Assange and Snowden will be the first things that DeSantis will do if he’s elected. First thing. Absolutely.
In fact, I’m betting that Assange and Snowden will be on the stage with DeSantis as he takes the oath. Maybe one or both of them will hold the bible for him.
When I saw you could operate a weapon using just your shoulder and the appropriate stance and get the same result as a bump stock, I thought why the hell are they fighting over something that is basically meaningless?
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