HB2435 Summary

• Amends the Motor Vehicle Franchise Act to prohibit manufacturers from requiring or prohibiting dealers from offering secondary products including service contracts, maintenance agreements, extended warranties, and other ancillary products, though incentive programs without vehicle sales or service incentives are permitted.

• Allows manufacturers to offer incentive programs to encourage dealers to sell manufacturer-approved secondary products, but prohibits these incentives from providing vehicle sales or service rewards.

• Exempts certain repair work from the secondary product restrictions, allowing manufacturers to prohibit use of secondary products for warranty repairs, recalls, service contracts, extended warranties, maintenance plans, or certified pre-owned vehicle programs.

• Defines "secondary product" as all products that are not new motor vehicles or original equipment manufacturer parts.