An Act Concerning The Direct Sales Of Motor Vehicles.
Summary
HB 5645 would amend chapter 246 of the Connecticut General Statutes to allow motor vehicle manufacturers to sell and deliver vehicles directly to consumers without first having a franchise agreement with a car dealer in the state. In practical terms, the bill would create an exception to the existing dealer-franchise model for new vehicle sales, opening the door for manufacturer-to-consumer sales channels.
The stated purpose is to promote free market competition in motor vehicle sales. The bill does not appear to create a detailed regulatory framework beyond authorizing direct sales and delivery, so its main effect would be to change the legal relationship between manufacturers, franchised dealers, and consumers in the state’s auto sales market.
Impact
If enacted, the bill would modify Connecticut’s motor vehicle franchise laws by removing the requirement that a manufacturer have a franchise agreement with a Connecticut car dealer before selling and delivering a vehicle to a consumer. This would affect chapter 246 and could reduce the exclusivity of franchised dealers in new vehicle sales, potentially allowing direct-to-consumer sales by manufacturers such as electric vehicle companies or other automakers that use nontraditional sales models.
Sentiment
Based on the bill text alone, the measure is framed positively as a pro-competition reform, and there is no recorded committee debate or vote history in the provided materials showing opposition or support. The overall tone of the proposal suggests a market-oriented approach intended to expand consumer choice and competition in vehicle sales.
Contention
The likely point of contention is the impact on franchised motor vehicle dealers, who may view direct manufacturer sales as a threat to the existing dealership system and related business protections. Supporters would likely argue that consumers benefit from more competition, potentially lower prices, and easier access to vehicles, while opponents would likely emphasize dealer investment, local jobs, and the traditional franchise structure that state law currently protects.