DeSantis Approves Bill HB637 Partially Banning Direct-To-Consumer Car Sales in Florida

Big news for car dealerships in Florida, as Governor Ron DeSantis has signed a new law (HB 637) that could change the way you buy your next vehicle. This new law, which takes effect from July 1, prohibits most direct-to-consumer car sales, favoring traditional dealerships over a more direct buying experience.

HB 637 is seen as a win for Florida's car dealers, securing their place in the car-selling market. However, critics argue it could disrupt the business model of companies like Tesla, who sell their vehicles online and through their own retail locations.

But it's not all bad news for these newer manufacturers. Lobbyists have managed to add language to the bill that keeps Tesla galleries open and allows newer manufacturers to hold a franchise dealer license for direct sales of electric vehicles. But this privilege doesn't extend to traditional car makers like GM, Ford, Honda, and Toyota.

The bill also introduces several regulations for manufacturers and dealers. For instance, manufacturers can't reserve or incentivize the sale or lease of vehicles, and they can't require dealers to set vehicle prices at recommended rates.

Supporters of the bill, including Dave Ramba, a lobbyist for the Florida Automobile Dealers Association, argue that it will promote competition among dealers, leading to better prices and services for consumers. On the other hand, some economists suggest that allowing more direct sales could lead to lower prices for consumers.

Join us as we delve into the implications of this new law and what it means for the future of car buying in Florida. Don't forget to like, share, and subscribe for more updates. Thanks for watching The Parts and Service Desk!