H406

Clarify Motor Vehicle Dealer Laws

Chamber Passed·5/5/25

Clarifies motor vehicle dealer laws in North Carolina, including dealership succession, compensation for over-the-air products, and franchise.

This bill amends North Carolina's motor vehicle dealer laws to clarify dealership succession, compensation for over-the-air products, and franchise terminations. It allows dealers to appoint successors, mandates compensation for over-the-air products sold to customers, and outlines conditions for terminating, canceling, or nonrenewing a franchise. The bill also specifies that manufacturers must provide dealers with monthly statements detailing over-the-air sales and requires manufacturers to compensate dealers for unsold vehicles and certain costs if a franchise is terminated.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Last
Passed the House · 107–1 · May 5, 2025
Current
Rules and Operations of the Senate Committee
Next
Senate floor vote

Sponsors

0
15
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Democratic CaucusRepublican Caucus

Roll Call Votes

Second Reading

107 Yea

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1 Nay

D

12 Absent

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Calendar

Apr 29, 2025

4:00 PM

Convened at 11:00 a.m. Session Reconvenes Hearing

Apr 29, 2025

4:00 PM

Convened at 11:00 a.m. Session Reconvenes Hearing

History

May 5, 2025

Senate

Regular Message Received From House

May 5, 2025

Senate

Passed 1st Reading

May 5, 2025

Senate

Ref To Com On Rules and Operations of the Senate