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A 5225

Requires motor vehicle dealers to disclose price markups to the purchasers of motor vehicles

2025 Regular Session Introduced by Jonathan Jacobson

Requires NJ motor vehicle dealers to disclose markups above base price to buyers, boosting price transparency at sale and helping shoppers see total vehicle costs.

REFERRED TO TRANSPORTATION
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Bill Summary · A 5225

Summary: New Jersey Assembly Bill A 5225

Note: The introduced version content provided appears to describe a different bill (United States Navy Veteran license plates). The following summary focuses on A 5225 as identified by its bill title and status. If you can share the actual text of A 5225, I can update this with precise provisions.

Basic bill information

  • Bill number: A 5225
  • Title: Requires motor vehicle dealers to disclose price markups to the purchasers of motor vehicles
  • Sponsor: Jonathan Jacobson (primary)
  • Status: Introduced and referred to Assembly Transportation and Independent Authorities Committee; subsequently listed as REFERRED TO TRANSPORTATION (as of 2025-02-12)
  • Introduced: January 27, 2025
  • Related/companion bills: S 4073 (companion), A 7985, A 3096, A 3898, A 6127, A 1125; S 6543 (companions)

What the bill would do (based on the title)

  • Purpose: Increase price transparency in automobile sales by requiring motor vehicle dealers to disclose any price markups to buyers.
  • Core concept: Dealers would need to reveal markups above base prices (e.g., above invoice cost or other established benchmarks) at the point of sale or in required disclosures.
  • Intended outcome: Enable purchasers to understand the full price components of a vehicle purchase, potentially curbing opaque or surprise pricing practices.

Key provisions and changes (pending text)

  • The exact definitions (e.g., what constitutes a "markup," how disclosed, and what must be shown on the purchase agreement) are not provided in the information available.
  • Details likely to appear in the bill (if present in the final version) could include:
    • Required disclosure format and timing (before or at the point of sale).
    • Any exemptions (e.g., fleet sales, auctions, or certain financing arrangements).
    • Penalties or enforcement mechanisms for noncompliance.
    • Responsibilities of dealers versus manufacturers or lenders.
    • Definitions of enforcement agencies or oversight roles.

Who/how would be affected

  • Affected entities: Licensed motor vehicle dealers in New Jersey.
  • Consumers: Buyers of new and/or used motor vehicles who would receive clearer information about markups.
  • State oversight: Likely involvement of the New Jersey Motor Vehicle Commission or other consumer protection/antitrust-related divisions, depending on the final text.

Procedural and timeline aspects

  • Introduction date: January 27, 2025.
  • Committee action: Referred to Assembly Transportation and Independent Authorities Committee; later noted as REFERRED TO TRANSPORTATION.
  • Next steps: If advanced, the bill would need passage by the Assembly and Senate, and then be sent to the Governor for signature or veto. The companion bill in the Senate (S 4073) would move in parallel.

Potential impact and considerations

  • Consumer impact: Increased transparency could reduce information asymmetry in vehicle pricing and help buyers compare offers.
  • Dealer impact: Could require changes to sales workflows, disclosures, and possibly pricing strategies; may involve training and updated contract templates.
  • Market effects: Depending on the precise disclosures required, there could be pressure on markup practices and competition among dealers.

If you can provide the actual text of A 5225, I’ll deliver a detailed, provision-by-provision summary with precise requirements, definitions, exceptions, and enforcement language.

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

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