New York State Continues to Prohibit Vehicle Sales
/Metro & State Dealer Associations Jointly Submit Emergency Relief Plan for Vehicle Sales
Dealer Associations across New York, including Buffalo, Rochester, Syracuse, Greater New York, the Capital Region, and the New York State Auto Dealers Association have worked jointly to find a way to keep dealers' sales departments opened for sales to the general public. Yesterday, the group submitted a new proposal that if approved would allow dealers, on a temporary basis, to sell and lease cars for a segment of consumers who need a new or used vehicle during this crisis.
If approved as proposed, dealers using a remote sales process will be able to complete a sales transaction and deliver the vehicle either in a secure area in the dealership that has been kept clean according to the CDC requirements or outside in the dealer’s lot, or through a home delivery.
The associations developed the proposal in response to Gov. Cuomo’s Executive Order from last week that required the shutdown of all “non-essential” businesses, including vehicle sales at new and used car dealers. The proposal would allow dealers to service consumers who need to replace their existing vehicle, whether it’s due to age, reliability, or a lease that is expiring or other circumstances.
Access to a vehicle is especially crucial since the state is discouraging the public from using mass transit during the health crisis and because of the lack of public transportation in other communities across the State.
For these reasons, the dealer associations have come up with the following proposal that would allow for temporary remote and electronic sales until the Emergency Order in New York State is lifted:
Dealership sales departments should not be open to the general public, but allow dealers to conduct transactions remotely or electronically to meet the needs of a segment of consumers who, at this critical time, require new or replacement vehicles, or who must return a vehicle where the lease has ended.
Apply social distancing requirements to all appointments for vehicle deliveries or lease returns.
Conduct all deliveries and interactions in one of the following safe settings: (1) Outside a dealership; (2) in a service bay cleaned according to Centers for Disease Control (CDC) Coronavirus Prevention Guidelines; (3) in a designated room cleaned according to the CDC Guidelines; or (4) at a consumer’s home or place of business.
All personal interactions – whether in returning a vehicle or exchanging paperwork – must follow CDC Guidelines and NYS requirements related to workplace health and social distancing.
**** Essential Business Sales Exemption****
The definition of “essential” businesses ranges from health care practices to key manufacturing businesses, to government services like police and fire departments. This would not include employees of essential businesses. You may find the comprehensive list of which businesses are “essential” by clicking here.
Yesterday, the Empire State Development Corporation, acting on behalf of Governor Andrew Cuomo issued guidance acknowledging the need for “Essential” Businesses to purchase goods and services from non-essential businesses. Under this guidance, dealers may sell vehicles to essential businesses.
These sales can be made through dealers at the dealership by appointment only, and only necessary employees may be present to complete the sale to the essential business. Sales personnel should only be present in the dealership during a sales transaction. This action is temporary, and its effect will expire when the Coronavirus emergency is over.
We will keep you updated on the response to this proposal and if/when it might go into effect. In the meantime, dealers are restricted from selling vehicles except to “essential” businesses.
GNYADA will update you immediately with any significant developments.
