Welcome to your daily briefing on automotive developments in New Jersey. Today we're covering 7 key stories including updates on new jersey automotive headlines, background & context. Let's dive in.
4 stories
The source provides an overview of key New Jersey DMV changes for 2024, including updated fees, services, and regulations.
Automotive professionals in NJ need to stay current on DMV policy shifts to ensure compliance, accurate customer guidance, and operational efficiency.
The Motor Vehicle Security and Customer Service Act established the Motor Vehicle Commission to replace New Jersey's Division of Motor Vehicles.
Understanding this agency's structure helps automotive professionals navigate vehicle registration, titling, and compliance processes in New Jersey.
The New Jersey Legislature has passed Senate Bill 3309, the Motor Vehicle Open Recall Notice and Fair Compensation Act, which now awaits Governor Phil Murphy's signature.
This amendment to the Franchise Practices Act will create new compliance obligations and potential compensation frameworks for NJ dealerships handling vehicles with open recalls.
New Jersey legislation would require dealerships to notify buyers of any open recalls on used motor vehicles offered for sale.
NJ dealers and sales teams may need to update their disclosure processes and train staff to verify and communicate recall status before completing used vehicle transactions.
Reach professionals in this market
3 stories
A dealer may pull a credit report only with the consumer's authorization or for a specific permissible purpose under FCRA — typically completion of a credit transaction initiated by the consumer. Pulling a credit report based on a sales-floor walk-in without explicit authorization is a violation, even with intent to "save the customer time.".
FCRA violations carry statutory damages even without proof of harm, plus attorney fees. A pattern of unauthorized pulls can produce class-action exposure.
Floor-plan lenders perform unannounced inventory audits to verify that every financed vehicle is on the lot, in the condition reported, and not sold-out-of-trust. The audit cycle is typically monthly. Discrepancies — a vehicle not present without proof of sale and payoff — trigger acceleration of the entire credit line in many agreements.
Sold-out-of-trust findings can convert a manageable cash-flow gap into immediate demand for the entire floor-plan balance. Recovery from a single bad audit can take years.
Federal law prohibits the sale of new vehicles under an open recall; the rules vary for used vehicles by state. Several states now require dealers to disclose open recalls to used-car buyers and to repair recalled vehicles before sale. Compliance varies widely across regions.
Selling a vehicle with an undisclosed open recall produces consumer-protection exposure and, in some states, automatic rescission rights for the buyer. The cost is far higher than the recall repair would have been.
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