Assembly Passes Azzariti Bill Expanding N.J. Motor Vehicle Franchisors’ Rights Regarding Employee Cars

12/8/2025

The bill (A5854) clarifies the state’s Franchise Practices Act, which governs the relationship and responsibilities between car manufacturers and dealerships, to explicitly permit manufacturers to sell and lease cars to employees and service them without having to meet the same requirements of new car and truck dealers that sell to the public. Manufacturers would also be able to assign up to 50 vehicles to employees for promotions and they can receive regular license plates.

“New Jersey is fortunate to be the North American headquarters for global car makers like BMW and Subaru. They support good jobs for our residents and contribute billions to the national economy,” Azzariti (R-Bergen) said. “This law helps keep them in the Garden State by recognizing their unique needs while still protecting dealerships that sell to the general public. A manufacturer may need to lend vehicles to their employees for marketing or product familiarity purposes and quickly address any maintenance or service issues that arise. This allows them to do those things without violating the Franchise Practices Act.”

In addition to BMW in Woodcliff Lake and Subaru in Camden, Jaguar Land Rover and Volvo both have corporate headquarters in Mahwah.

If the Senate also concurs with the recommendations, the bill will become law immediately and apply retroactively to Jan. 1, 2025.

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