An Act Concerning The Offering Price Of A Motor Vehicle By A Car Dealer.
Summary
SB 774 revises Connecticut’s motor vehicle dealer pricing and disclosure rules. The bill requires dealers advertising a vehicle price to include the federal tax, delivery, dealer preparation, dealer conveyance or processing fees, and any other charges in the advertised price, while still clearly disclosing that state or local taxes and registration fees are excluded. It also requires the dealer conveyance or processing fee to be separately stated in bold type in advertisements.
The bill further updates the paperwork required for vehicle sales. Sales orders and invoices must include specified information about the vehicle, deposit terms, financing charges, trade-in allowances, warranty status, demonstrator status, dealer identity, and any dealer conveyance or processing fee, along with a statement that such fee is not payable to the state. It also clarifies that dealer preparation charges may not be included for items or services reimbursed by the manufacturer or for items not specifically ordered by the buyer and itemized on the invoice. The changes take effect October 1, 2025.
Impact
The bill amends sections 14-62a and 14-62 of the general statutes governing motor vehicle dealer sales practices. It would tighten advertising and contract disclosure requirements for new and used car dealers, regulate how dealer fees are presented to consumers, and authorize enforcement through fines of up to $1,000 and possible suspension or revocation of a dealer license by the Commissioner of Motor Vehicles. The practical effect is to increase price transparency for buyers and limit how dealers can structure or advertise add-on fees.
Sentiment
The committee vote suggests generally favorable support, with the Transportation Committee reporting the bill Joint Favorably by a 25-10 vote. The absence of recorded transcript discussion limits insight into detailed arguments, but the vote indicates majority support for stronger consumer disclosure rules in auto sales. The bill appears to have been advanced as a consumer-protection measure rather than a controversial overhaul of dealer regulation.
Contention
The main point of contention appears to be the treatment of dealer conveyance or processing fees and whether those fees should be embedded in advertised prices or separately disclosed. Dealers may view the bill as restricting pricing flexibility and increasing compliance burdens, while supporters are likely focused on preventing misleading advertised prices and surprise charges at the point of sale. Another likely issue is the prohibition on including dealer preparation charges for reimbursed or unrequested items, which further limits dealer-added fees and could be opposed by the dealer industry.