NIADA submitted a letter to the Massachusetts Joint Committee on Consumer Protection and Professional Licensure chairman Oct. 10 ahead of a legislative hearing on a bill to modernize consumer protections in auto transactions.
In the letter, NIADA expressed opposition to several key provisions, including mandatory mileage thresholds for warranties, a proposed doubling of the dealer surety bond, and expanded authority allowing the state Attorney General to file unilateral claims against bonds without appropriate due diligence.
“Along with our regional partners at the Massachusetts Independent Automobile Dealers Association/Southern New England Independent Automobile Dealers Association, we support legislative efforts that strike the right balance between protecting consumers and preserving a competitive, accessible used vehicle marketplace,” NIADA wrote. “Unfortunately, despite its good intentions, S. 228 falls short of achieving this goal and would place significant burdens on independent automobile dealers and the consumers they serve.”
The bill’s modified warranty requirements include a 90-day window or 3,750 miles for vehicles under 50,000 miles; a 60-day window or 2,500 miles for vehicles between 50,000 and 100,000 miles; and, a 30-day window or 1,250 miles for vehicles between 100,000 and 200,000 miles.
“While well-intentioned, these requirements fail to account for the realities of the used car market, especially for smaller independent dealerships,” NIADA offered in the letter. “Many used vehicles sold in good faith are affordable precisely because they come with shorter warranties or are sold ‘as is’ in accordance with applicable law. The expanded warranty obligations in the legislation represent significant cost centers for independent dealers. They will increase repair liability, limit available inventory, and raise prices, disproportionately affecting lower-income buyers who rely on their vehicles as a financial lifeline.”
NIADA remains committed to working with state associations throughout the 2026 legislative session to oppose harmful measures affecting the independent auto industry.
