agent Entrepreneur logo
MenuMENU
SearchSEARCH

New Law Eliminates Federal Red Tape from New Car Sale

June 11, 2014
2 min to read


WASHINGTON (NADA) – Auto dealers no longer have to fill out a form certifying that a new vehicle complies with the Clean Air Act prior to the sale.


H.R. 724, which was supported by the National Automobile Dealers Association (NADA), was signed into law yesterday by the president. The bill eliminates an obsolete federal mandate passed in 1977.

Ad Loading...


“All new vehicles delivered to dealerships from the factory are already compliant with federal emissions regulations,” said NADA Chairman Forrest McConnell, III. “The form was unnecessary, and we’re glad it’s gone.”


McConnell, a Honda/Acura dealer in Montgomery, Ala., added that the certification information is printed on a sticker under the vehicle’s hood and provided in the owner’s manual and automaker websites—making the additional dealer form redundant.


Passage of the new law is part of a larger NADA effort to reduce outdated and unnecessary federal regulations on auto retailers. In 2013, at NADA’s urging, Congress eliminated the requirement that dealers to provide their customers with a booklet on the estimated insurance costs for new vehicles. Consumers can find more accurate insurance information online or by phone.


Last month, the Center for Automotive Research (CAR) released an NADA-commissioned report, which found that new-car dealers spent $3.2 billion in 2012 or $182,754 per dealership to comply with 61 major federal rules—resulting in higher prices for dealership customers and the loss of an estimated 10,500 dealership jobs. Click here for the CAR study.


NADA’s chairman commended the leadership of U.S. House sponsors Reps. Bob Latta, R-Ohio, and Gary Peters, D-Mich., as well as Sens. Debbie Stabenow, D-Mich., and Deb Fischer, R-Neb., who helped guide passage of H.R. 724 through the U.S. Senate.

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →