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Bill Allowing Dealers To Sell Vehicles Online With E-Signatures Passes The Senate And Assembly And Heads To Governor Murphy

Jun 24, 2021

Auto dealers will soon be permitted to sell motor vehicles online and complete the sale by allowing transactional documents to be signed via electronic signature under legislation unanimously approved by the full Assembly on Monday.

In April 2020, new car sales plummeted 70% as motor vehicle dealers were forced to close their doors due to statewide stay-at-home restrictions put in place during the COVID-19 pandemic. Governor Phil Murphy signed an executive order to allow auto dealers to sell vehicles online, but customers were still required to come to the dealership to sign necessary paperwork. Without written signatures, the New Jersey Motor Vehicle Commission (MVC) could reject the documents during the registration process.

Bill A5033 will allow car sales in New Jersey to be conducted online. Customers could select and purchase vehicles from licensed dealers as well as sign transactional documents electronically. The MVC would be required to accept documents signed via e-signature.

In addition, the legislation sets forth certain requirements for new and used car dealers, including that they must maintain an office space in the state and keep electronic records of online sales.

The bill now awaits Governor Murphy’s signature to make it law.