Florida Governor Ron DeSantis has signed a bill into law that prohibits most automakers from selling directly to consumers in the state. The bill, which was sponsored by the Florida Automobile Dealers Association (FADA), takes effect on July 1, 2023.
The bill exempts electric vehicle (EV) manufacturers from the ban, so Tesla and other EV makers will still be able to sell directly to consumers in Florida. However, traditional automakers such as Ford, General Motors, and Toyota will be required to sell their cars through franchised dealerships.
The bill was passed in response to concerns from the FADA that direct-to-consumer sales would hurt traditional dealerships. The FADA argues that dealerships provide important services to consumers, such as providing financing, warranty work, and test drives. They also argue that direct-to-consumer sales would lead to higher prices for consumers.
Supporters of the bill argue that it will protect consumers from higher prices and poor service. They also argue that it will preserve jobs at traditional dealerships.
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Introduction
Florida Governor Ron DeSantis recently signed a bill that partially bans direct-to-consumer car sales in the state. The law, which goes into effect on July 1, 2023, prohibits most automakers from selling directly to consumers. Instead, they will be required to sell through franchised dealerships.
The law has been met with mixed reactions. Some consumers have welcomed the change, saying that it will give them more choices and lower prices. Others have criticized the law, saying that it will hurt competition and lead to higher prices.
What is direct-to-consumer car sales?
Direct-to-consumer car sales is a business model where automakers sell directly to consumers, without the use of franchised dealerships. This model has been gaining popularity in recent years, as it allows automakers to cut costs and pass those savings on to consumers.
There are several advantages to direct-to-consumer car sales. First, it allows automakers to sell cars at a lower price. Second, it gives consumers more choices, as they can purchase directly from the automaker or from a third-party seller. Third, it eliminates the need for dealerships, which can save consumers money on sales taxes and other fees.
However, there are also some disadvantages to direct-to-consumer car sales. First, it can be difficult for consumers to test drive cars or get financing. Second, it can be difficult for consumers to get warranty repairs or other services. Third, it can be difficult for consumers to return a car if they are not happy with it.
What does the new law in Florida do?
The new law in Florida prohibits most automakers from selling directly to consumers. The law does allow electric vehicle companies to continue selling directly to consumers, as well as automakers that have fewer than 15 dealerships in the state.
The law also prohibits automakers from reserving or incentivizing the sale or lease of vehicles, including electric or hybrid cars. This means that automakers cannot offer discounts or other incentives to consumers who purchase a car directly from them.
How does the law affect consumers?
The new law in Florida will likely have a mixed impact on consumers. On the one hand, it will give consumers more choices, as they will be able to purchase cars directly from automakers. On the other hand, it is likely to lead to higher prices, as automakers will no longer be able to compete with dealerships on price.
It is also possible that the law will make it more difficult for consumers to get financing or warranty repairs. This is because dealerships often have relationships with banks and repair shops that allow them to offer lower prices and better service.
How does the law affect dealerships?
The new law in Florida is a major blow to dealerships. Dealerships are likely to lose sales and profits as a result of the law. This could lead to job losses and the closure of dealerships.
Dealerships have been lobbying against the law for years. They argue that the law is unfair to them and that it will hurt consumers. However, the law has been passed by the Florida legislature and signed by the governor.
What are the arguments for and against direct-to-consumer car sales?
There are several arguments for and against direct-to-consumer car sales.
Arguments in favor of direct-to-consumer car sales
- It allows automakers to cut costs and pass those savings on to consumers.
- It gives consumers more choices, as they can purchase directly from the automaker or from a third-party seller.
- It eliminates the need for dealerships, which can save consumers money on sales taxes and other fees.
Arguments against direct-to-consumer car sales
- It can be difficult for consumers to test drive cars or get financing.
- It can be difficult for consumers to get warranty repairs or other services.
- It can be difficult for consumers to return a car if they are not happy with it.
FAQs
Who is Ron DeSantis?
Ronald Dion DeSantis is an American politician serving since 2019 as the 46th governor of Florida. A member of the Republican Party, DeSantis represented Florida’s 6th congressional district in the U.S. House of Representatives from 2013 to 2018.
What are some of Ron DeSantis’s accomplishments as governor?
Ron DeSantis has been praised for his handling of the COVID-19 pandemic in Florida. He has also been credited with improving the state’s economy and reducing taxes. DeSantis has also signed into law a number of conservative policies, including a law that bans sanctuary cities and a law that prohibits transgender students from playing on sports teams that correspond with their gender identity.
