Dealers Dig In, To Fight Stay-Home Orders Closing Car Sales Entirely; Service And Parts Remain Open

Auto dealers aren’t giving up yet, on keeping their sales operations at least partially open despite a growing number of pandemic-related business shutdowns, arguing in a letter to President Donald Trump, “Not all vehicle sales are discretionary consumer purchases.”

That is, sometimes businesses and individuals really do need a replacement vehicle right away for basic transportation, and that should qualify dealership sales operations as “essential” businesses, according to the March 23 letter, from trade associations that represent passenger-car and heavy-truck dealers, plus automakers.

Replacement demand comes from vehicles that are scrapped because they’re worn out, or not economical to be repaired; from vehicles that are totaled in a crash or flooded; and from customers whose leases expire, the letter said.

Earlier, groups representing dealers and automakers won a partial victory when the Trump administration defined dealership parts and service operations as essential businesses. However, federal guidance didn’t mention dealership sales operations.

“As a result, some states and other jurisdictions have prohibited vehicle sales by dealerships,” the letter stated. “This is incongruous, given that motor vehicle manufacturing and distribution to the dealers is considered critical infrastructure.”

Since the federal guidance didn’t specifically forbid retail auto sales, the trade groups are asking the Trump Administration to “clarify” whether sales are permitted, the letter said.

Even if dealer showrooms were allowed to stay open, the auto industry groups said they aren’t asking to carry on business as usual.

“In those states and other jurisdictions that permit vehicle sales during the crisis, dealership sales are not being conducted in open, traditional in-person transactions,” the letter said. Rather, during the health emergency dealership sales are being conducted online, with deliveries being made directly to the buyer’s home, the groups said.

The letter was issued by the National Automobile Dealers Association and American Truck Dealers, the National Association of Minority Automobile Dealers, the American International Automobile Dealers Association, an import-brand organization, plus the Alliance for Automotive Innovation, an automaker group.