Connecticut mandates transparency in dealer conveyance and processing fees for vehicle sales

On April 1, 2025, the Connecticut State Legislature introduced Senate Bill 774, aimed at enhancing transparency in vehicle sales transactions. The bill seeks to address consumer concerns regarding hidden fees and unclear pricing practices commonly associated with auto dealerships.

Key provisions of Senate Bill 774 include requirements for dealers to clearly display the term "demonstrator" on both orders and invoices, ensuring that consumers are aware of the vehicle's status. Additionally, any dealer conveyance or processing fees must be prominently stated in bold type, clarifying that these fees are not payable to the state. The bill mandates that the selling price quoted to prospective buyers must include these fees while also separately stating their negotiable nature.

The legislation is designed to prevent dealers from adding undisclosed charges at the time of sale, particularly those for services reimbursed by manufacturers or not explicitly ordered by the buyer. This aims to protect consumers from unexpected costs and promote fairer pricing practices in the automotive market.

During discussions surrounding the bill, there was notable debate regarding the implications of these regulations on dealership operations. Some industry representatives expressed concerns that the bill could limit their ability to negotiate prices effectively, while consumer advocacy groups supported the measure as a necessary step toward greater accountability in the industry.

The economic implications of Senate Bill 774 could be significant, as it may lead to a shift in how dealerships structure their pricing strategies. By fostering a more transparent environment, the bill could enhance consumer trust and potentially stimulate competition among dealers.

Senate Bill 774 is set to take effect on October 1, 2025, and if passed, it could reshape the landscape of vehicle sales in Connecticut, ensuring that consumers are better informed and protected during their purchasing decisions. As the legislative process continues, stakeholders from both sides will be closely monitoring the bill's progress and potential impact on the automotive market.