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Bill

SB 1308

Motor vehicle dealers; recall and warranty costs, right of first refusal.

2025 Regular Session Introduced by Jeremy McPike

SB 1308 requires automakers to pay independent dealers for warranty and recall work, granting them service priority over franchise dealerships starting July 1, 2025.

Acts of Assembly Chapter text (CHAP0558)
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Bill Summary · SB 1308

Legislative bill overview

SB 1308 requires motor vehicle manufacturers to pay for recall and warranty work performed by independent dealers, and grants independent dealers a right of first refusal to perform warranty and recall services before manufacturers can route work to franchise dealerships. The bill also establishes requirements for fair compensation structures between manufacturers and dealers performing this work.

Why is this important

This legislation directly affects competition in the automotive service market and consumer choice. It protects independent repair shops from being undercut by manufacturer-controlled networks while potentially influencing where Virginians can service their vehicles under warranty and recall situations, which could impact service accessibility and costs.

Potential points of contention

  • Manufacturer cost impact: Requiring manufacturers to pay independent dealers for recall work may increase manufacturer expenses, potentially passed to consumers through higher vehicle prices
  • Franchise dealership concerns: Traditional franchise dealers may lose profitable service work to independent competitors, affecting their business models and employment
  • Implementation ambiguity: The bill's definition of "fair compensation" and enforcement mechanisms for manufacturer compliance remain subject to regulatory interpretation, creating uncertainty for all parties

Compiled from official sources — confirm details with the bill’s official record.

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