1. United States
  2. N.J.
  3. Letter

Support Direct-to-Consumer Vehicle Sales in New Jersey

To: Assembly Member Scharfenberger, Assembly Member Flynn, Sen. O'Scanlon, Gov. Sherrill

From: A constituent in Leonardo, NJ

August 30

I'm writing to urge you to support legislation allowing automakers to sell vehicles directly to consumers in New Jersey, rather than forcing every sale through the state's franchised dealer network. New Jersey's dealer franchise laws exist to shield a politically connected industry from competition. Written decades ago at the request of dealer lobbies, they function as a government-enforced monopoly that inflates prices and limits consumer choice. Automakers like Tesla and Rivian have had to fight for narrow regulatory carve-outs just to sell their own cars to New Jersey residents, and other manufacturers face the same barrier. This protection is the product of sustained lobbying. Dealer associations in New Jersey are among the most consistent political donors in the state, and the large majority of that money flows to Republican candidates and committees who work to preserve these protectionist rules. Consumers pay more at the lot so a narrow industry can keep collecting rents while funding a political machine that blocks reform. Allowing direct sales supports competition and benefits consumers. It lets new entrants, especially EV makers, reach New Jersey customers without paying a toll to a middleman industry that adds cost without adding value. It gives residents lower prices, more transparency, and the freedom to buy a car the way they buy almost everything else. I ask that you support state legislation removing New Jersey's direct sales restrictions, or at minimum decline to back any effort to further entrench dealer-only sales mandates, and instead side with consumers and genuine market competition over an entrenched, well-funded lobby.

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