The New Jersey Coalition of Automotive Retailers (NJ CAR) has launched a new statewide campaign, “Local Matters,” aimed at educating consumers and legislators about the economic and community value of franchise dealerships as direct-to-consumer sales models continue to gain ground.
Laura Perrotta, President of NJ CAR, joins the latest episode of CBT Now to discuss the campaign’s origins and what it hopes to help consumers and policymakers better understand about local dealerships.
Addressing direct-sales pressure
According to Perrotta, nearly 550 dealerships operate across New Jersey, supporting more than 75,000 jobs and contributing millions of dollars annually to local communities. The Local Matters campaign seeks to highlight that impact at a moment when the franchise system faces new competitive pressure.
“Everything that your local dealership is doing for the community… goes beyond the actual vehicle sale… It’s about service, investing in the local community, giving back through charitable means, creating great local jobs. There’s so many positive impacts that the dealerships have.”
Currently, Tesla operates 11 locations in New Jersey, a mix of four licensed dealerships and additional galleries, following a 2015 law that capped direct-sales licenses at four. Perrotta explains that Tesla’s presence in the state originated from a licensing oversight in 2014, when the Motor Vehicle Commission unintentionally granted the company a dealer license.
She added that state lawmakers later debated the issue and settled on the four-location cap, intending for Tesla to eventually transition to a franchise model as EV sales matured. However, she asserts that the transition never happened and that the law never mandated it.
Additionally, Perrotta pointed to Volkswagen’s Scout Motors brand as the latest example of a legacy manufacturer testing direct sales, and warned that other automakers could follow suit if the franchise system erodes.
Beyond the sales model
While some consumers argue that direct sales offer more choice and competition, Perrotta counters that New Jersey’s franchise dealers already offer online purchasing options and compete aggressively on price, financing and service. She notes that dealerships compete not just against a single manufacturer’s rivals, but against every brand in the market, which she contends creates built-in accountability that direct-sales models do not replicate.
“New Jersey is a strong franchise state and we have invested in the franchise system here in New Jersey.”
Perrotta also emphasized the community role dealerships play beyond vehicle sales, including sponsorships, charitable giving and recall and warranty service. She confirmed that New Jersey dealers give back an estimated $26 million to charity annually and often serve as the primary point of contact for customers navigating manufacturer recalls.
Nevertheless, the Local Matters campaign includes a 30-second commercial featuring a fourth-generation New Jersey dealership owner who shares her family’s story, as part of an effort to humanize the franchise model for both the public and state legislators. Perrotta notes that NJ CAR plans to run the campaign across social media, geo-targeted digital ads reaching legislators, and cable news outlets.
Perrotta said she hopes the campaign encourages other state dealer associations to launch similar efforts, framing the franchise system’s local economic footprint as a message that resonates well beyond New Jersey.
