Iowa Governor Signs Anti-Fleet Bill

Iowa Governor Terry Branstad signed an anti-fleet incentive bill on May 28 which bans incentives to non-dealer and non-dealer-affiliated Iowa daily rental and leasing firms. The bill was sponsored by the Iowa Automobile Dealers Association and became state law on July 1. Specifically, the legislation mandates: "A manufacturer shall not knowingly discriminate in price against Iowa's purchasers or lessees by selling or leasing a new motor vehicle to any dealer at any price lower than the lowest price at which the manufacturer offers to sell or lease any new motor vehicle of the same make and model similarly equipped to any other dealer.''

The legislation, designated S.F. 2084, specifically applies to companies whose primary business is renting, leasing, or selling of automobiles. Vehicles over 9,000 gross vehicle weight do not fall under the jurisdiction of the legislation, which some observers feel was designed to protect recreational vehicle manufacturers located in Iowa.

Fleets that buy or lease 10 or more vehicles a year, or who use the vehicles in their business, will be unaffected by the new state law in Iowa. The legislation also does not apply to sales to dealer-affiliated leasing companies, government agencies, manufacturer employees, or sales to dealers.