Rep. Jones files bill in North Carolina House to clarify motor vehicle dealer laws

A new bill filed by State Rep. Brenden H. Jones in the North Carolina House seeks to clarify motor vehicle dealer laws and protect dealers from coercive manufacturer actions, according to the North Carolina State House.

The bill, filed as HB 406 on March 13 during the 2025 regular session, was formally listed with the short title: ‘Clarify Motor Vehicle Dealer Laws.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill aims to clarify various motor vehicle dealer laws in North Carolina. It prohibits manufacturers from coercing dealers into franchise changes without good cause, ensures compensation for dealers when selling over-the-air vehicle products, and outlines the process for transferring dealership ownership to qualified buyers. The bill also addresses the definition of a motor vehicle dealer and selling activities, provides guidelines for dealership succession, and restricts unfair manufacturer practices such as selling unfinished vehicles to dealers. It mandates full reimbursement for loaner vehicles if required by the manufacturer and clarifies warranty reimbursement terms. The act takes effect upon becoming law and applies to all current and future dealer agreements.

A related bill, SB 295, was also filed in the North Carolina Senate, introduced by Sen. Brent Jackson (and two others) on March 13, 2025.

Of the three sponsors of this bill, Jones proposed the most bills (16) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Jones, a Republican, was elected to the North Carolina State House in 2017 to represent the state’s 46th House district, replacing previous state representative Ken Waddell.