Why Clean Car Choice
You shouldn’t have to drive out of state to test drive and buy a car that’s for sale
The Problem
Right now, Washington denies consumers the choice to buy vehicles directly from American zero-emission car manufacturers. You can’t even test drive vehicles available for purchase, talk about pricing and financing, or buy them from a showroom.
But one manufacturer can, because they have a loophole.
How? In 2014, the state passed a law that allowed only one manufacturer to sell to consumers and shut the door on everyone else. This gives that company an unfair competitive advantage that no one else gets today.
This loophole means less competition, higher costs, and fewer choices.
Washington is behind. Washington is the only state in the Pacific Northwest and on the entire West Coast that limits consumers’ choice to buy directly from any zero emission vehicle manufacturer.
The Solution
Legislators in Olympia can make it fair for everyone, giving all zero emission vehicle manufacturers that don’t have a dealer network the same opportunities to sell cars in Washington. Ending this ban will give consumers the choice to make their own buying decisions.
This solution would NOT apply to all auto manufacturers — just those who do not currently have a local dealer network.
How it’s good for consumers & our state
Allowing consumers to buy directly from a zero emission vehicle manufacturer that doesn’t currently have a dealer network in Washington would mean more competition and a level playing field. This increased competition would help lower costs for consumers. Traditional car dealers typically markup a vehicle about 10 percent over the manufacturer’s suggested retail price.
The state is telling you which car companies you can buy from — and which ones you can’t. Limiting consumers’ choice to buying from just one zero emission vehicle manufacturer reduces competition and picks winners and losers. It’s only fair to give all zero emission car manufacturers the same opportunity — especially when we are trying to encourage American innovation and a domestic ZEV supply chain.
Washington would see an increase in tax revenue generated from more car sales if the state allowed direct-to-consumer car companies in the state. For example, one ZEV company estimates that sales tax from car sales would double if it was granted the ability to sell its product directly.
Zero-emission car manufacturers are less likely to build showrooms and hire salespeople if they can’t sell their vehicles to prospective customers. Given the demand for zero emission vehicles, these jobs are being located in neighboring states and elsewhere, but would be located in Washington if the state updated their laws.
Allowing consumers to buy directly from zero emission vehicle manufacturers would help put more clean vehicles on Washington State roads and help us meet our clean transportation goals. This change in law would not cost the taxpayer anything, which is important as the state navigates a budget shortfall. One study found that by enabling all manufacturers to sell zero emission vehicles directly to consumers, clean car adoption may increase by as much as 13 percent between 2023 and 2030.
Right now, if a Washington resident purchases any zero emission vehicle directly from a manufacturer that doesn’t have a dealership network, the transaction legally occurs outside the state, so Washington laws might not govern the transaction or the rules governing the manufacturer’s responsibilities. A change in the state’s law would allow the transaction to occur in Washington meaning Washington rules governing consumer protections would apply.
Washingtonians want to be free to make their own car-buying decisions
Eight in ten Washingtonians say they want Washington to update our laws so consumers can test drive vehicles and buy one directly from any zero emission car manufacturer that doesn’t currently work with traditional auto dealerships.
The data is clear: Changing the law will NOT hurt existing dealerships
Data from the dealers’ own national lobbying group, the National Auto Dealers Association, clearly shows that franchise auto dealers in states that provide clean car choice have seen higher revenue growth and higher employment growth compared to states that ban consumers from making direct purchases:
FAQs
Washington’s laws for how cars are bought and sold were written before the Internet. Since then, how people purchase things has changed.
For example, some new vehicle manufacturers made the business decision to sell vehicles directly to consumers. This business model allows them to keep products affordable, respond to their customers’ needs immediately through a direct relationship, and gives people a choice to buy a vehicle online or in a showroom.
However, in 2014, the auto dealers reached an agreement with the state that clearly banned consumers from buying directly from vehicle manufacturers, except for one. This gives that manufacturer an unfair advantage today and prevents new manufacturers from operating in the state.
That means less competition, higher costs, and fewer choices.
Washington is the only state on the entire West Coast—and in the whole Pacific Northwest—that still denies you the freedom to buy the vehicle of your choice. For now, that means if you walk into a showroom you can’t test drive vehicles available for purchase, talk about pricing and financing, or purchase one on-site — unless you’re shopping at the sole manufacturer benefiting from the loophole.
It’s simple: We pass a law that allows zero-emission vehicle manufacturers who do not have existing dealer relationships to sell directly. This lets companies who started out as direct to consumer — and don’t have a dealer network — to sell their product directly.
No. This solution would only apply to zero emission vehicle manufacturers that do not currently have a dealer network and that sell directly to consumers. It would not apply to all auto manufacturers.
No. Data from the dealers’ own national lobbying group, the National Auto Dealers Association, clearly shows that franchise auto dealers in states that provide clean car choice have seen higher revenue growth and higher employment growth compared to states that ban consumers from making direct purchases.
Yes. Changing the law to allow zero emission car manufacturers to sell directly would increase vehicle sales; therefore, it would increase sales tax revenue allocated to localities.
Yes.
Zero emission vehicle manufacturers that do not have a dealer network are less likely to build showrooms and hire salespeople if they are banned from selling vehicles at these locations.
Given the demand for zero emission vehicles, these jobs are being located in neighboring states and elsewhere, but would be located in Washington if the state updated our laws. Greater access to more consumers and the possibility of more sales leads companies to consider making greater investments in innovation.
This is important for any new industry, and especially in any industry where foreign competition is making significant investments.
You can visit Oregon, Idaho, Canada, or California.
It’s a vehicle manufacturer that designs, manufactures AND sells and services their vehicles through their own service centers and showrooms. This means they do not use franchise dealerships or impose dealer markups. Also, the price listed is the final price. There is no haggling or negotiating the price you’ll pay for the vehicle.
There are approximately 140,000 electric vehicles registered in Washington state — half of those are from the manufacturer with the loophole. That loophole has resulted in reduced competition and less choice for people interested in buying an electric vehicle.
Yes.
An independent analysis by Atlas Public Policy found that by giving consumers the choice to buy zero emission vehicles directly from the manufacturers, adoption may increase by as much as 13 percent between 2023 and 2030. The state’s Joint EV Council agrees that this market inconsistency creates an unnecessary barrier to electric vehicle adoption.
“They [this] puts one more obstacle between consumers and the technologies that can help reduce carbon emissions and prevent consumers from accessing clean cars.”— Auto News
There is a growing coalition of organizations across sectors and consumers across the state who support updating our state laws to give consumers the choice to buy a car from any zero emission vehicle manufacturer, including climate action advocates, labor, and consumer rights organizations.
Organizations who support this update to our laws include:
- CALSTART
- The Certified Electrical Workers of Washington
- Clean and Prosperous
- Climate Solutions
- The Electrification Coalition
- The Electric Vehicle Charging Association
- Evergreen Action
- Evergreen Carbon
- Lucid
- The Nature Conservancy
- Rivian
- The Seattle Electric Vehicle Association
- The Washington Build Back Black Alliance
- Washington Conservation Action
…and others.