Successful Session Wraps with New Dealer Warranty and Recall Protections

The 2025 Virginia General Assembly adjourned on Saturday — an occasion known as “Sine Die” — and with it, VADA’s priority legislation, which passed through the House and Senate unanimously, heads to Gov. Glenn Youngkin's desk for his signature.

Dealers should look forward to:

• OEMs no longer having the ability to challenge warranty rates based on their definition of “reasonableness”
• Protection from decreases in markup on recall and recall-like repair parts
• the ability to return unused recall parts
• strengthened protection for payment for diagnostic repair time; and,
• the right to full reimbursement for rental vehicles within 30 days, regardless of the vehicle’s make or model.

Here's the details of that legislation, should you need a refresher or primer.

We thank Del. Briana Sewell (D-Prince William) for carrying HB1683, and Sen. Jeremy McPike (D-Prince William) for serving as patron to the identical SB1308. And of course, we thank the more than 100 dealers and auto techs who attended our Dealer Day on Jan. 29 to advocate for this important legislation.

In other legislative news

Among the more contentious bills in the 2025 session was legislation that would have removed the Virginia car tax (it was defeated), as well as legislation to permit a casino in Northern Virginia (which was tabled). A bill passed that will increase Virginia’s minimum wage to $15 an hour by 2027.

On the budget

Legislators also made changes to the two-year Virginia budget that will provide a one-time rebate to taxpayers, an increase in the standard income tax deduction, bonuses for teachers and state employees, and increases in state education funding. The revised budget includes funding for the Electric Vehicle Rural Infrastructure Fund, which will assist in funding electric vehicle charging stations in eligible localities. However, legislators anticipate reconvening in coming months to further rework the budget, considering potential cuts to federal funding.

The Governor has until March 24 to consider legislation passed by the General Assembly. He can sign, amend, or veto, and VADA will continue to work to ensure his signature on our legislation.