Gov. Mikie Sherrill has signed legislation, supported by NJBIA and the New Jersey Coalition of Automotive Retailers (NJ CAR), that provides greater flexibility to franchised dealers regarding where they are allowed to locate their service facilities.
The bill, A-4050/S-1423, sponsored in the Assembly by William Spearman (D-5) and Erik Peterson (R-23), and in the Senate by Joseph Lagana (D-38) and Anthony Bucco (R-25). The law, P.L.2026, c.63, was signed on July 30 and takes effect immediately.
The legislation helps automotive dealers by no longer requiring the service area for vehicles to be attached to the showrooms. Now applicants for a motor vehicle dealer license may also place their service areas in a separate building on the same property, or an off-site facility within the relevant market area in New Jersey.
Senator Bucco called the law “common-sense relief” that would help keep the cost of car and truck maintenance and repairs lower.
"Requiring service departments to be physically attached to a showroom does not provide any meaningful benefit to consumers, but it does create unnecessary challenges for businesses in a state as densely populated as New Jersey," Bucco said.
"Giving dealerships more flexibility to establish service facilities in more practical locations will help reduce unnecessary costs, expand service capacity, and ultimately help keep prices down for customers," Bucco said.
