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Passage of the new law is part of a larger NADA effort to reduce outdated and unnecessary federal regulations on auto retailers.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

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →