Following a climactic legislative session and a successful second annual Dealer Day at the Capitol, Coulter McMahen, President and CEO of the Louisiana Automobile Dealers Association (LADA), joins us on the latest episode of Inside Automotive to share the latest developments impacting dealers across the state. From protecting essential tax credits to fighting against direct sales models from brands like Scout and Tesla, McMahen outlines how Louisiana’s dealer network is staying resilient in the face of regulatory and market shifts.
According to McMahen, Louisiana’s recent legislative session brought both fiscal challenges and significant victories for the state’s franchised auto dealers. Chief among them was the successful defense of the state’s inventory tax credit. As McMahen explained, Louisiana is one of only a few states that still tax business inventory, a policy that has long been seen as “anti-competitive.” The state provides a credit to offset that burden, and preserving it was critical.
“Based off a survey of our dealership group, on average, that would have been about a $300,000 to $400,000 hit that dealers would have taken if that credit had been wiped out.”
Another primary focus was advocating for insurance and legal reforms, as Louisiana continues to wrestle with high property and casualty insurance costs that directly impact dealers’ bottom lines.
The association’s second annual Dealer Day at the Capitol provided dealers with an opportunity to lobby for the franchise model and foster relationships with lawmakers. McMahen emphasized its importance in defending against the growing push by automakers like Scout, Volkswagen, and Honda to bypass franchise partners and sell directly to consumers.
Despite strong protections currently in place in Louisiana, McMahen cautioned that continued vigilance is needed. “Dealers know what the consumer wants,” he said, adding that the franchise model has outperformed direct-sale efforts in both consumer service and sustainability.
Among the concerns keeping some Louisiana dealers up at night are rising tariffs, EV sales pressure, and infrastructure gaps in rural areas. While Louisiana has not adopted California’s strict CARB emission standards, McMahen praised President Trump’s repeal of those federal rules, citing the positive national impact on dealer operations.
“Bet on dealers 10 out of 10 times, they’re gonna overcome it.”
Looking ahead, LADA is launching a next-gen program to support upcoming dealer successors and will participate in the NADA legislative fly-in this September to further promote pro-dealer legislation. Despite ongoing headwinds, McMahen remains confident.
