DeSantis Blocks Direct-To-Consumer Car Sales For Most Brands, But Not Tesla

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DeSantis Blocks Direct-To-Consumer Car Sales For Most Brands, But Not Tesla via insideevs.com

The Florida Senate passed House Bill 637 and Governor Ron DeSantis has signed it into law. The measure effectively blocks automakers from bypassing dealerships to sell vehicles directly to consumers, but the law doesn't apply to all companies. In short, if automakers didn't have deals with independent dealers in the state before the law, they can sell direct.

may not directly or indirectly own, operate, or control, by contract, agreement, or otherwise, a motor vehicle dealership for any line-make in this state if the licensee, manufacturer, importer, or distributor has manufactured, imported, or distributed motor vehicles of any line-make which have been or are offered for sale under a franchise agreement in this state with an independent person.

Any person who is not prohibited by this section from owning, operating, or controlling a motor vehicle dealershipTo paraphrase that, manufacturers cannot have a license to directly own a dealership if said manufacturer already has franchise agreements in place. This puts the kibosh on legacy automakers selling directly to consumers through factory stores, and such laws are found in other states. However, those laws generally blockbrands from direct-to-consumer sales.

 

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