Connecticut enacts new regulations for motor vehicle dealer transactions

Connecticut's Senate Bill 1357 is set to reshape the landscape of vehicle sales in the state, aiming to enhance transparency and consumer protection in the automotive market. Introduced on April 8, 2025, the bill mandates that all vehicle sales documentation clearly disclose various fees and charges, including dealer conveyance and processing fees, which are often sources of confusion for buyers.

At the heart of the legislation is a requirement for dealers to itemize all optional add-ons and services in a prominent section of the sales order. This section must clearly state that these fees are optional and not mandated by law, ensuring that consumers are fully informed before making a purchase. The bill also stipulates that the term "demonstrator" must be visibly marked on any vehicle that has been used by the dealer, further protecting buyers from potential misrepresentations.

Debate surrounding Senate Bill 1357 has highlighted concerns from automotive dealers who argue that the additional disclosure requirements could complicate the sales process and increase operational costs. However, consumer advocacy groups have praised the bill, asserting that it empowers buyers and promotes fair practices in an industry often criticized for hidden fees.

The implications of this bill are significant. By enforcing clearer communication of costs, it aims to reduce consumer complaints and disputes, potentially leading to a more trustworthy automotive market in Connecticut. As the bill moves forward, its success will depend on the balance between protecting consumer rights and addressing the concerns of dealers about the feasibility of compliance.

With an effective date set for October 1, 2025, stakeholders are closely monitoring the bill's progress, anticipating its potential to transform vehicle sales practices across the state.