New Law Eliminates Federal Red Tape from New Car Sale
WASHINGTON (NADA) – Auto dealers no longer have to fill out a form certifying that a new vehicle complies with the Clean Air Act prior to the sale.
H.R. 724, which was supported by the National Automobile Dealers Association (NADA), was signed into law yesterday by the president. The bill eliminates an obsolete federal mandate passed in 1977.
“All new vehicles delivered to dealerships from the factory are already compliant with federal emissions regulations,” said NADA Chairman Forrest McConnell, III. “The form was unnecessary, and we’re glad it’s gone.”
McConnell, a Honda/Acura dealer in Montgomery, Ala., added that the certification information is printed on a sticker under the vehicle’s hood and provided in the owner’s manual and automaker websites—making the additional dealer form redundant.
Passage of the new law is part of a larger NADA effort to reduce outdated and unnecessary federal regulations on auto retailers. In 2013, at NADA’s urging, Congress eliminated the requirement that dealers to provide their customers with a booklet on the estimated insurance costs for new vehicles. Consumers can find more accurate insurance information online or by phone.
Last month, the Center for Automotive Research (CAR) released an NADA-commissioned report, which found that new-car dealers spent $3.2 billion in 2012 or $182,754 per dealership to comply with 61 major federal rules—resulting in higher prices for dealership customers and the loss of an estimated 10,500 dealership jobs. Click here for the CAR study.
NADA’s chairman commended the leadership of U.S. House sponsors Reps. Bob Latta, R-Ohio, and Gary Peters, D-Mich., as well as Sens. Debbie Stabenow, D-Mich., and Deb Fischer, R-Neb., who helped guide passage of H.R. 724 through the U.S. Senate.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →