Committee unanimously advances Sen. Nangle bill to strengthen consumer protections for online vehicle sales
AUGUSTA — On Thursday, Feb. 26, the Legislature’s Transportation Committee voted unanimously to advance LD 2179, “An Act to Amend Certain Motor Vehicle Laws,” legislation sponsored by Sen. Tim Nangle, D-Windham, that would strengthen consumer protections for Mainers purchasing vehicles online.
“Buying a vehicle is one of the largest purchases many families make,” said Sen. Nangle. “As more sales move online, Maine needs clear rules to make sure these companies are licensed, accountable and transparent with consumers. This bill helps ensure that when Mainers buy a car online, they still have the same protections they would expect at a local dealership.”
LD 2179 includes provisions directing the Bureau of Motor Vehicles to establish a pilot program to license and regulate used-car dealers, such as Carvana, who sell vehicles exclusively online to Maine consumers. The proposal creates a clear consumer protections framework for online-only dealerships, requiring them to obtain a state license, meet background and sales history requirements, maintain a $350,000 surety bond and comply with Maine and federal consumer disclosure laws.
Vehicles sold through these platforms would also be required to pass a Maine inspection before being delivered to the buyer, helping ensure that online vehicle purchases meet the same safety and transparency standards Mainers expect when buying from a traditional dealership.
These provisions cover dealers who sell many cars, comparable to a brick-and-mortar retail dealership — not Mainers who commonly use online platforms, such as Facebook Marketplace, to advertise and sell their used vehicle.
LD 2179 now awaits votes in the full Senate and House.
Sen. Nangle is serving his second term in the Maine Senate, representing Casco, Frye Island, Raymond, Windham and part of Westbrook. He serves as Senate chair of the Transportation Committee and sits on the Health and Human Services Committee.
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