Trade-in Vehicle Valuation

Plain English Breakdown

The bill summary text does not specify details about how it will affect small dealerships that do not use J.D. Power or NADA valuation guides.

Trade-in Vehicle Valuation

This bill revises the definition of 'purchase price' to include a trade-in allowance based on the retail value from J.D. Power or NADA Official Used Car Guide if there is no agreement between the consumer and manufacturer.

What This Bill Does

• Revises the definition of 'purchase price' to include a trade-in allowance based on the retail value of the trade-in vehicle as reflected in J.D. Power or NADA Official Used Car Guide (Southeastern Edition) if there is no agreement between the consumer and manufacturer.
• Sets July 1, 2026 as when these changes take effect.

Who It Names or Affects

• Car buyers who trade in their old vehicles for new ones.
• Automobile manufacturers and dealerships that sell or lease cars with trade-ins.

Terms To Know

Purchase price

The cash price of a vehicle, including any allowance given for trading in an older car, but excluding debt from other transactions.

Trade-in allowance

The value given to a customer when they trade in their old car towards the purchase or lease of a new one.

Limits and Unknowns

• It is unclear how this bill will affect small dealerships that do not use J.D. Power or NADA valuation guides.
• The bill does not specify what happens if neither J.D. Power nor NADA provides a valuation for the trade-in vehicle.

Official Summary Text

Trade-in Vehicle Valuation; Revising the definition of the term “purchase price” for purposes of the Motor Vehicle Warranty Enforcement Act, etc.

Current Bill Text

Florida Senate
-
2026

SB 226

By
Senator Smith

17-00414-26 2026226__
1 A bill to be entitled
2 An act relating to trade-in vehicle valuation;
3 amending s. 681.102, F.S.; revising the definition of
4 the term “purchase price” for purposes of the Motor
5 Vehicle Warranty Enforcement Act; providing an
6 effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Subsection (18) of section 681.102, Florida
11 Statutes, is amended to read:
12 681.102 Definitions.—As used in this chapter, the term:
13 (18) “Purchase price” means the cash price as defined in s.
14 520.31(2), inclusive of any allowance for a trade-in vehicle,
15 but excludes debt from any other transaction. “Any allowance for
16 a trade-in vehicle” means the net trade-in allowance as
17 reflected in the purchase contract or lease agreement if
18 acceptable to the consumer and manufacturer. If such amount is
19 not acceptable to the consumer and manufacturer, then the trade
20 in allowance
must

shall
be an amount equal to 100 percent of the
21 retail price of the trade-in vehicle as reflected in
J.D. Power,

22
or the nearest valuation date listed for the trade-in vehicle by

23
J.D. Power

the NADA Official Used Car Guide (Southeastern

24
Edition) or NADA Recreation Vehicle Appraisal Guide, whichever

25
is applicable
, in effect at the time of the trade-in. The
26 manufacturer
is

shall be
responsible for providing the
27 applicable
J.D. Power valuation

NADA book
.
28 Section 2. This act shall take effect July 1, 2026.