N.H. legislators pass amendments to Dealer Bill of Rights

A bill that would further regulate the relationship between New Hampshire auto dealers and their factories is a step closer to becoming law despite opposition from automakers.

The New Hampshire House of Representatives passed a bill Wednesday, 338-30, that would amend the state’s Dealer Bill of Rights to add protections for dealers.

The state Senate, which passed its own version of the bill, 21-2 in March, must now concur with the House version or create a compromise bill that would need approval by both chambers before it is sent to New Hampshire Gov. Maggie Hassan for her signature.

Major provisions of both versions of the bill would give dealers more autonomy over local operations. For instance, automakers would be prohibited from requiring that dealers remodel their facilities more often than every 15 years. Dealers also would get more authority in choosing what finance or floorplan bankers they use.

Both versions of the bill also would add protections to ensure dealers are reimbursed by manufacturers for warranty work at a fair rate and would broaden the law to include adopted children and stepchildren as possible heirs to inherit a dealership.

Pete McNamara, president of the New Hampshire Automobile Dealers Association, said he’s confident that the state Senate will concur with the House bill and that Hassan will sign the legislation.

“The association was pleased with the overwhelming vote in favor of balancing the relationship between dealers and manufacturers,” McNamara said.

Though automakers have alleged that dealers are using the bill to boost profits, McNamara said changes such as the limit on required store upgrades are designed to help dealers reduce costs for what can often be expensive mandates from manufacturers.

Dan Gage, spokesman for the Alliance of Automobile Manufacturers, could not be reached for comment on Friday. On Wednesday, he told the Foster’s Daily Democrat newspaper in New Hampshire that dealers are resisting important assistance from manufacturers.

“Automakers are disappointed that New Hampshire car dealers succeeded in their high pressure demands to stall manufacturer efforts to reform and improve the car buying experience,” Gage said in a statement. “The unfortunate result is New Hampshire motorists will ultimately pay more in both the showroom and service department to further add to car dealers' ongoing record-breaking profits.”