The franchised dealership system gives consumers something a direct-sales model cannot: independent retailers competing for their business. Multiple dealers selling the same brand compete on price, trade-in value, financing, service and the overall customer experience. Dealers also provide a convenient, nationwide network for test drives, vehicle delivery, warranty and recall work, and ongoing service—all backed by significant private investment in local communities.
 

Dealers also serve as important advocates for consumers by facilitating warranty repairs and increasing vehicle recall completion rates. Unlike manufacturers, which face financial costs associated with warranty and recall work, dealers have a direct incentive to ensure these services are performed promptly and effectively.
 

State franchise laws protect this competitive system. These laws ensure local small business dealers are protected from automakers' disproportionate economic power, while providing consumers with an independent local business that is accountable to them when problems arise.
 

Direct-to-consumer (DTC) sales eliminate that same-brand retail competition. When the manufacturer is also the retailer, consumers cannot shop competing sellers of the same vehicle for a better price or deal. And a DTC model does not eliminate the considerable costs of vehicle retailing and servicing — it simply shifts those costs. Independent studies confirm it’s not cheaper for manufacturers to sell direct and would not save consumers money.
 

America’s franchised new-car dealerships directly employ more than 1.1 million people and support nearly 2.4 million jobs nationwide, while contributing roughly $500 million each year to charitable organizations and community causes.
 

Approximately every five years, Congress must pass a surface transportation bill that sets federal policy and funding for the nation’s roads, bridges, transit and highway safety programs. As Congress works to reauthorize the law, NADA is actively engaged on two provisions that could be included in the legislation and would affect dealers and consumers:
 

The REPAIR Act: Consumers have the freedom to choose where they have their vehicles repaired. Independent repair shops perform more than three-quarters of all post-warranty repairs, with manufacturers making the tools and information needed to diagnose and repair vehicles available to them under a 2014 industry agreement.
 

A bill proposed in Congress in 2026 called the REPAIR Act (H.R. 1566) had almost nothing to do with vehicle repair. Backed by large insurance companies and aftermarket parts manufacturers, the legislation would allow third-party access to sensitive driver and vehicle data and enable aftermarket manufacturers to reverse-engineer original vehicle parts. These provisions could allow any third party greater access to vehicle data while encouraging the use of potentially inferior non-original parts — raising concerns about consumer privacy, safety and choice.
 

In May 2026, the House Energy and Commerce Committee replaced the original bill with a narrower, bipartisan approach. The revised legislation codifies the existing industry agreement on access to repair tools and information, gives the Federal Trade Commission authority to enforce it, and directs the FTC to study issues involving vehicle data, privacy, cybersecurity and safety.
 

NADA supports this approach, which protects consumer repair choice without advancing unrelated commercial interests or compromising consumer privacy and vehicle safety.
 

The PART Act: Catalytic converter theft remains a costly problem for consumers and dealerships across the country. Thieves target converters for the valuable precious metals they contain, and because the parts generally lack traceable identification, they can be difficult for law enforcement to track. For consumers, replacing a stolen converter can cost thousands of dollars, and dealerships can face significant losses when multiple vehicles are targeted. These crimes have also turned violent, in some cases with tragic consequences.
 

NADA strongly supports the bipartisan Preventing Auto Recycling Theft (PART) Act, which would give law enforcement important tools to deter theft and trafficking. Most importantly, the legislation would require new catalytic converters to carry a unique, traceable identifying number and provide grants to mark converters already on the road. It would also strengthen recordkeeping requirements and establish federal criminal penalties for catalytic converter theft and trafficking.
 

Another bipartisan proposal, the Deputy Darren Almendarez Act, introduced by Reps. Brandon Gill and Lou Correa, would establish strong federal penalties for trafficking stolen catalytic converters. While the Gill-Correa bill is a positive step, it lacks the PART Act’s critical traceability requirement.
 

NADA and law enforcement groups agree the PART Act provides the stronger, comprehensive framework needed to protect consumers, dealerships and communities.
 

Vehicle affordability is a persistent challenge for consumers and dealers alike. Dealers want to have the inventory customers need at prices they can afford, and trade policies can have a significant impact on both vehicle prices and availability.
 

The automotive supply chain is deeply integrated across North America, with vehicles and parts often crossing borders multiple times before a vehicle reaches a dealership. NADA supports the United States-Mexico-Canada Agreement (USMCA) because a strong North American trading relationship helps manufacturers manage costs, maintain a diverse supply of vehicles and keep prices down for American consumers.
 

NADA also works with the administration and lawmakers to ensure they understand how tariffs on vehicles and auto parts can affect Main Street businesses and their customers. While tariffs can be an important tool to address unfair trade practices and protect U.S. interests, they can also increase costs throughout the automotive supply chain, ultimately putting additional pressure on vehicle prices.
 

NADA will continue advocating for trade policies that strengthen the U.S. auto industry while protecting vehicle affordability, availability and consumer choice.
 

The rapid expansion of Chinese automakers presents significant concerns for American consumers, workers and businesses. Chinese vehicles collect substantial amounts of data, which presents serious threats to consumer privacy, cybersecurity and national security. Chinese automakers also benefit from significant government subsidies that create an uneven playing field for American and other global manufacturers competing in the U.S. market.
 

NADA supports policies that prevent Chinese automakers from entering the U.S. market and strongly supports the policy goals of the bipartisan Connected Vehicle Security Act (CVSA). The legislation would prohibit the importation, manufacture, sale and resale of connected vehicles and key vehicle technology linked to China and other foreign adversaries.
 

For dealers, unchecked Chinese entry could threaten locally owned businesses and American jobs by allowing heavily subsidized Chinese competitors to gain market share. For consumers, the stakes include not only fair competition, but also access to sensitive data generated by vehicles that are connected to the internet and that the Chinese government can access.
 

Transparent advertising is good for consumers and good for competition. Clear, accurate vehicle pricing helps consumers comparison shop with confidence, while consistent enforcement of advertising standards creates a level playing field for dealers and strengthens trust in automotive retail. NADA supports clear and transparent advertising and works with dealers to promote compliance with federal and state requirements.
 

In March 2026, the Federal Trade Commission sent warning letters to 97 auto dealership groups regarding potential deceptive pricing practices. The letters highlighted concerns including mandatory fees not reflected in advertised prices, discounts or rebates unavailable to all consumers, and advertising vehicles that were not actually available. 
 

In September 2026, the FTC released Automobile Industry Pricing Transparency FAQs that address common questions regarding truthful dealer advertising. The FTC is continuing to engage with NADA and potentially will provide additional guidance in the future.
 

America’s franchised dealers fully support customers’ interests in electric vehicles (EVs). Dealers offer a wide variety of vehicles to fit the needs and budgets of all Americans, including the latest EV models. Dealers have invested over $7.7 billion in EV inventory, facilities, equipment and training — and in 2025, franchised dealers sold more new EVs than all direct-sales manufacturers combined.
 

From 2010 until 2025, a federal incentive was in place that reduced the cost of eligible EVs by as much as $7,500. At their height during this time, EVs plateaued at about 8 percent of new-vehicle sales nationally on an annual basis. And, since that incentive expired in September of 2025, EV sales have dropped significantly.
 

Despite very weak consumer demand, federal and state regulations were structured to require rapidly increasing levels of EV adoption. In fact, federal emissions standards effectively required EVs to make up more than half of new-vehicle sales by 2032, while California rules adopted by a number of other states required a transition to 100 percent ZEV (EVs plus some plug-in hybrids) sales by 2035.
 

Dealers cannot control which vehicle technologies customers choose, nor can government mandates manufacture consumer demand. Recognizing this fundamental disconnect between regulatory requirements and the marketplace, NADA successfully advocated for policies that better reflect actual consumer demand and allow Americans — not government mandates — to determine which vehicles best meet their needs.