Strengthen the Franchise System
New cars and trucks are sold through franchised dealers because the business model benefits consumers, local communities and manufacturers. NADA advocates for policies that protect this system.
For nearly a century, the franchised new-car and new-truck dealer model has benefited consumers, automakers, and local communities across the country. It remains the most efficient and trusted way to sell, service, and finance vehicles – providing competition, convenience and choice in every market. Independent research confirms that this model delivers greater value and lower costs than direct sales, strengthening both the industry and customers it serves.
Motor vehicles are among the most regulated consumer products in America, requiring proper licensing, insurance, and often financing. Dealers must also comply with rigorous environmental and safety standards. Every state legislature has enacted laws that govern how cars and trucks are sold and serviced. These dealer franchise laws not only safeguard consumers, but balance the interests of manufacturers and their franchised dealers. By upholding these laws, states help maintain a competitive marketplace for consumers.
Media Contact
Legislative Affairs
Learn how NADA Legislative Affairs protects and promotes franchised auto and truck dealerships’ interests before Congress.
Regulatory Affairs
Learn how NADA Regulatory Affairs Group protects and promotes franchised auto and truck dealerships’ interests before the federal administrative agencies.
