New Warranty and Recall Protections for Dealers Signed into Law

This week, Governor Glenn Youngkin signed into law new protections to ensure fair reimbursement for Virginia’s automotive technicians and dealerships performing warranty and recall repairs. Backed by strong bipartisan support in the General Assembly, the legislation marks a major victory for dealerships, which are often small businesses, across the Commonwealth — closing loopholes, preventing price manipulation by manufacturers and guaranteeing pay for diagnostic and communication time. The law takes effect July 1, 2025.

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
• The right to full reimbursement for rental vehicles within 30 days, regardless of the vehicle’s make or model

"We thank our great bill patrons, Delegate Sewell and Senator McPike, for championing fairness for Virginia’s dealerships and the technicians who keep our communities moving and Governor Youngkin for signing the bills,” said Don Hall, President and CEO of VADA. “In many ways, this legislation is about one thing: doing what’s right. Dealerships shouldn’t be forced to eat the cost of a manufacturer’s mistake, and technicians deserve to be paid for the work they actually do. These new protections are something to be proud of — and something our industry can look forward to benefiting from for years to come."

Here are the details of the legislation.

Del. Briana Sewell (D-Prince William) carried HB1683, and Sen. Jeremy McPike (D-Prince William) served as patron to the identical SB1308.

You made a difference

Dealer Day played a major role in our success. More than 100 representatives from Virginia's franchised car and truck dealerships showed up in Richmond to "lead from the front" and support our legislation. In addition to that, dealers and techs sent 700 letters to legislators in support of HB1683 and SB1308.

The commitment and advocacy in support of fair compensation for Virginia dealers and their technicians is truly invaluable, and our successes are a direct result of VADA’s members’ collective passion, determination and unwavering support.

Special thanks to our Program Partner, Armatus Dealer Uplift, for sponsoring our luncheon prior to visiting the Hill, and to Armatus team members Jordan Jankowski and Ryan Hammer for joining us on these visits. Both Jankowski and Hammer also joined Anne Gambardella, General Counsel and Executive Vice President of VADA, on VADA Live earlier this year to discuss warranty and recall reimbursement challenges.

VADA Partner Armatus Dealer Uplift specializes in retail warranty reimbursement submissions for thousands of car dealers across the U.S. and in Virginia. With Armatus, dealers achieve the highest warranty parts markups and labor rates they are entitled to under state law.