TALLAHASSEE, Fla. — Salesmen at car dealerships across Florida can rejoice in a bill Gov. Ron DeSantis signed into law that bans most direct-to-consumer auto sales.
Under the law, it bars automakers from selling their next car directly to the buyer. The Florida Automobile Dealers Association (FADA) was a major advocate for the bill, stating it protects dealerships' investments for customers.
The bill also restricts manufacturers from requiring dealers to sell or lease a car at a specified price or profit margin or restrict the price at which a motor vehicle dealer may sell or lease a car.
Additionally, refusing to provide a dealer with a supply of new vehicles by model, mix or color equitable to that of other dealers is banned. It also forbids the requirement that dealers set the vehicle price at rates manufacturers recommended.
The law will go into effect on July 1. According to Florida Politics, the legislation was considered a direct threat to Tesla, the electric vehicle manufacturer, which sells its cars online and through retail locations.
However, lobbyists and lawmakers were able to work out a deal that allows electric vehicle companies like Tesla, Rivian and Lucid to "hold a franchise dealer license for direct sales of EVs if they are not otherwise prohibited under federal law," Florida Politics states. It apparently doesn't apply to other longtime car manufacturers that also offer EVs.
DeSantis also signed a record state budget that prioritizes transportation infrastructure with a historic investment of $14.8 billion for the Florida Department of Transportation. Record funding will also go toward Florida's health system and robust initiatives that support healthy families.
Correction: This story has been updated to reflect restrictions on the manufacturers in setting vehicle prices, not the dealers.