Substitute House Bill No. 5203 (sHB5203), introduced as File No. 323, aims to amend the general statutes concerning the sale of motor vehicles by dealers. The bill introduces the term "offering price," which is the total price a dealer will sell or finance a vehicle for, excluding only required government charges. It replaces the term "cash selling price" with "agreed-upon price" and removes the separate mention of dealer conveyance fees or processing fees, which must now be included in the offering price. The bill also requires dealers to disclose the offering price in any communication that references a specific vehicle or monetary amount and prohibits the inclusion of dealer preparation charges in the offering price for items or services reimbursed by the manufacturer or not ordered by the buyer. Additionally, it mandates that dealers provide a valid certificate of title at the time of sale for used vehicles and conduct a comprehensive safety inspection before offering a used vehicle for retail sale.

The bill further specifies that dealers cannot deliver or allow possession of a used motor vehicle until the purchaser has paid in full or financing has been approved. Violations of these provisions could result in a class B misdemeanor for the dealer. The bill repeals the requirement for dealers to state the dealer conveyance fee amount separately and that the fee is negotiable, instead requiring the inclusion of any such fee in the offering price. Dealers who violate the new requirements may face fines up to $1,000 and suspension or revocation of their dealer's license. The bill is related to sSB 3 (File 182), which prohibits businesses from advertising goods or services without including all charges and fees except taxes. The Transportation Committee has given sHB5203 a Joint Favorable Substitute with a vote of 23 in favor and 12 against on March 20, 2024, and the bill is set to be effective from October 1, 2024.

Statutes affected:
TRA Joint Favorable Substitute: 14-62, 14-62a
File No. 323: 14-62, 14-62a