Florida just became even more of a dealers’ haven after governor Ron DeSantis signed a bill strengthening protections for them. Not only does the law heavily limit direct-to-consumer sales but it also limits manufacturers’ power over dealers. Here’s a quick breakdown of what changes are coming to the Sunshine State in the near future.
The Florida Automotive Dealers Association heavily contributed to the language in the bill (HB 637) and the efforts to get it passed. Now, all of its dealer members are reaping the benefits as traditional automakers are legally required to sell through them. There is, however, a notable exception for Tesla.
That exception doesn’t explicitly include Lucid, Rivian, and other EV brands but it might open the way for them. The restriction goes into effect on July 1st of this year and immediately ends one big threat dealers were facing. Tesla’s direct-to-consumer sales model has proven successful and dealers don’t want traditional automakers to cut them out in the future.
Read: Texas To Ban Paper License Plates From July 2025
Ted Smith, president of the Florida Automobile Dealers Association, said this of the cutout for Tesla: “In doing that, we made a clear delineation between a manufacturer that has never had dealers and maybe never will, and those who have been heavily dependent upon their dealerships to be their marketing and sales presence in Florida.”
Limiting Manufacturers Power
Part of the bill makes it so that dealers have the express right to ignore MSRP and set their own price without fear of penalty. Automakers will no longer have the ability to limit allocation to dealers who charge greedy markups and damage brand loyalty in the process. On top of that, they can’t reward a dealer that’s willing to sell at or below MSRP either.
Manufacturers also have to fork over eight percent of the payment customers submit for any post-purchase electronic vehicle upgrades or activations sold within the first two years of purchase. That likely includes subscription-based items along with one-time upgrades, meaning prices for those items may go up in the near future.
For now, we’ll have to wait to see how the law affects sales in Florida. Should other states pass laws that enable more competition and not less, those with the cash to splash in Florida might be tempted to buy from out-of-state.
Opening image: Ron DeSantis@Twitter
