Victory for Independent Auto Dealers in New York: DMV Pauses Enforcement of Regulation 78.25(b)

FOR IMMEDIATE RELEASE

May 21, 2025

Victory for Independent Auto Dealers in New York: DMV Pauses Enforcement of Regulation 78.25(b)

Albany, NY — The New York Independent Automobile Dealers Association (NYIADA) is proud to announce a significant victory for independent automobile dealers across the state. After months of sustained advocacy, the New York State Department of Motor Vehicles (NY DMV) has announced, via VERIFY Tip # 128 on May 19th, 2025, a pause in the enforcement of Regulation 78.25(b), a policy that would have severely disrupted core business practices for independent dealers.

Originally announced on January 22, 2025, through VERIFY Tip #122, Regulation 78.25(b) requires dealers to maintain physical proof of ownership for all vehicles in their inventory at their registered place of business. Enforcement was scheduled to begin on June 1, 2025, effectively ending a long-standing industry standard that allowed floor plan lenders to retain original vehicle titles.

This shift in enforcement threatened to destabilize floor planning—a foundational credit structure for independent dealers. Floor plan lenders typically hold vehicle titles to mitigate risk, which in turn enables them to provide essential financing to dealers. Without this flexibility, many dealers would face reduced access to credit, limiting their ability to stock inventory and ultimately impacting consumer choice and affordability.

NYIADA acted swiftly, initiating dialogue with NY DMV officials, state legislators, the Governor’s Office, and key industry stakeholders. Through persistent advocacy and collaboration, NYIADA successfully made the case for the regulation’s reconsideration.

“We are grateful that the NY DMV listened to our concerns and recognized the vital role that floor planning plays in the existence of independent dealers,” said Paula Frendel, Executive Director of NYIADA. “We look forward to continuing this dialogue to ensure that any future regulatory updates strike a balance, preserving transparency and consumer protection without compromising a dealer’s ability to access critical credit.”

This pause in enforcement is a powerful example of what can happen when we speak with one voice. NYIADA stands strong in its mission to protect the independence and vitality of New York’s independent auto dealers—and this victory is proof that advocacy matters. When we act together, we can protect our industry. This pause is proof,” said Dana Bress, NYIADA President and Galaxy Auto Place’s owner.

NYIADA extends sincere thanks to Governor Kathy Hochul’s Office, Senator Jeremy Cooney, Assemblyman William Magnarelli, the National Independent Automobile Dealers Association (NIADA), and valued industry partners, including Statewide Public Affairs, AFC, NextGear Capital, and Cox Automotive, for their support throughout this effort.

This outcome demonstrates the impact of unified industry advocacy in shaping fair and sustainable public policy, protecting small businesses and maintaining consumer access to reliable, affordable transportation options across New York.

NYIADA will keep you updated on the next steps.