Car dealers across the country are navigating one of the most complicated regulatory and competitive environments in recent memory. Brokers are operating outside the law in states where the practice is banned. The FTC is cracking down on dealers over pricing transparency. And the long-term shape of the franchise system itself is being tested by direct-sales brands. Joining us on today’s Inside Automotive episode to discuss all of those issues and more is Laura Perrotta, President of the New Jersey Coalition of Automotive Retailers (NJ CAR). Perrotta says illegal broker activity in her state is putting pressure on dealers, and little is being done to stop it. NJ CAR pres.: Brokers operating outside the law Brokering has been illegal in New Jersey for decades. But Perrotta says the problem is getting worse, not better, and franchised dealers are the ones taking the hits. Unlicensed operators are selling new vehicles across the state without holding a dealer license. Perrotta says they are difficult to track and harder to shut down. At the same time, manufacturer stair-step programs are adding to the broker problem. Those programs, which are also illegal in New Jersey, put pressure on dealers to hit volume targets. That mix, she says, creates conditions that make broker activity more attractive and harder to police. "We have brokers making deliveries out of their driveways. Meanwhile, down the street, one of our Kia dealers is building a $20 million facility." Several manufacturers have sent letters to N.J. dealers notifying them that broker-related transactions will not count toward sales volume or incentive programs. But Perrotta says that’s not enough. NJ CAR is pressing the state’s new Motor Vehicle Commission head to take action by conducting direct inspections of broker operations and fining anyone selling new vehicles without a proper license. FTC’s pricing