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Who cares
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Sponsors
No co-sponsors yet.
History
- Enacting clause stricken
- Referred to transportation
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A314
Title of bill
An act to amend the vehicle and traffic law, in relation to the financ- ing of inventory by franchised motor vehicle dealers
Purpose or general idea of bill
To prevent a motor vehicle manufacturer from making the terms of sale or lease of a motor vehicle department upon whether a franchised motor vehicle dealer accepts inventory financing from a motor vehicle manufac- turer or a corporation affiliated with the manufacturer.
Summary of specific provisions
Section 1 amends Section 463 of the Vehicle and Traffic Law by adding a new paragraph (bb) to subdivision two of that section to prohibit a franchisor from conditioning sales incentives or favorable finance terms on a dealer's acceptance of floor financing from the franchisor or a corporation affiliated with the franchisor.
Section 2 adds a new subdivision 2-c to section 463 of the Vehicle and Traffic Law to prohibit a corporation affiliated with a franchisor from tying favorable financing terms, sale or lease terms, or other favorable treatment, to a dealer's willingness to place its floor financing with the affiliate.
Statement of support
New motor vehicles are distributed through a long standing franchise system. Under the system, motor vehicle manufacturers contract with motor vehicle dealers, providing those dealers with a franchise to sell and service that manufacturer's vehicles. As franchisees, the dealers make substantial investments and take on substantial responsibilities. They must display vehicles in accordance with manufacturer's standards, train personnel, and make substantial investments in product and equip- ment.
The New York Franchised Motor Vehicle Dealer Act was enacted to regulate the relationship between dealers and manufacturers. Recently, a prac- tice has developed under which a manufacturer, through its affiliated financing corporation, has made certain sales and leasing incentives available only to or through those dealers who secure their inventory financing, i.e. floor financing, through the manufacturer's affiliated financing corporation. This has resulted in situations, for example, where a consumer can receive advertised lease terms at some dealers but not at others. In other circumstances, the manufacturer has imposed less favorable payment terms on non-participating dealers. This bill would address those practices by prohibiting a manufacturer/franchisor from linking a franchised dealer's choice of financing to the availability of sales and 1 case terms to the franchised dealer's customers, or from otherwise treating such dealers or this customers less favorably than dealers who secure financing through the franchisor's affiliated corpo- rations.
Legislative history
A.213 of 2008, A.684 of 2006, A.368 of 2004, A.707 of 2002, A.7564 of 2000
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.