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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>365095</law_id><section_number>46.2-1573.02</section_number><catch_line>Limited right of dealers to sell new motor vehicles following termination of franchise</catch_line><edition url="https://vacode.org/2026/" slug="2026" current="TRUE" last_updated="2026-08-02">2026</edition><structure><unit label="title" level="1" order_by="101" identifier="46.2">Motor Vehicles</unit><unit label="subtitle" level="2" order_by="4" identifier="IV">Dealers and Driver Training Schools</unit><unit label="chapter" level="3" order_by="1" identifier="15">Motor Vehicle Dealers</unit><unit label="article" level="4" order_by="9" identifier="7">Franchises</unit></structure><text>
						<section><p>Notwithstanding any provision of this title to the contrary, a <span class="dictionary">motor vehicle dealer</span> shall have the right, for 180 days following the termination of its <span class="dictionary">franchise</span>, to continue to sell and advertise as new any existing <span class="dictionary">new motor vehicle</span> inventory of the <span class="dictionary">line-make</span> of the terminated <span class="dictionary">franchise</span>, under the following circumstances:</p></section>
						<section id="1"><p><span class="prefix-number">1.</span> The vehicle was acquired in the ordinary course of business as a new vehicle by a dealer franchised to sell that vehicle; <a id="paragraph-1360237" class="section-permalink" href="https://vacode.org/46.2-1573.02/#1"><i class="fa fa-link"/></a></p></section>
						<section id="2"><p><span class="prefix-number">2.</span> The <span class="dictionary">franchise</span> agreement of the dealer is terminated, canceled, or rejected by the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span> and the termination, <span class="dictionary">cancellation</span>, or rejection is not a result of the <span class="dictionary">revocation</span> of the dealer&#x2019;s license to operate as a dealer or the dealer&#x2019;s <span class="dictionary">conviction</span> of a <span class="dictionary">crime</span>; and <a id="paragraph-1360238" class="section-permalink" href="https://vacode.org/46.2-1573.02/#2"><i class="fa fa-link"/></a></p></section>
						<section id="3"><p><span class="prefix-number">3.</span> The vehicle was held in the inventory of the dealer on the date of the <span class="dictionary">franchise</span> agreement&#x2019;s termination.
			This provision does not entitle a dealer whose <span class="dictionary">franchise</span> agreement has been terminated, canceled, or rejected to continue to perform warranty service repairs or continue to be eligible to offer or receive consumer or dealer incentives offered by the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span>, except as earned by the dealer prior to termination of the <span class="dictionary">franchise</span> agreement. <a id="paragraph-1360239" class="section-permalink" href="https://vacode.org/46.2-1573.02/#3"><i class="fa fa-link"/></a></p></section></text><history>2010, cc. 284, 318.</history><metadata></metadata></law>
