Used Car Safety Recall Repair

Full Title:
Used Car Safety Recall Repair Act

Summary#

This bill changes parts of title 49, United States Code, to add a definition of "used motor vehicle" and to limit when dealers can sell, lease, or loan used vehicles that have open safety recalls. It adds a rule that if a manufacturer does not provide a repair remedy within 60 days after a specified notification date, the manufacturer must reimburse a dealer who holds the used vehicle. The reimbursement rate must be set by the Secretary and be at least 1 percent of the vehicle's fair market value per month, prorated daily, until a remedy is available or payments equal the vehicle's fair market value. The bill also adds a rule that a "dealer" (someone who sold at least 5 vehicles in the prior year) may not sell, lease, or loan a used motor vehicle until any required recall remedy is completed. Exceptions allow sale if recall information was not available through the Secretary's system or the manufacturer's website, if enforcement of a recall order is stayed in certain court actions, if the vehicle is sold at wholesale, or if the vehicle is a junk automobile with required title information reported. The bill takes effect 1 year after enactment.

What it means for you#

  • Consumers: Dealers generally must not sell, lease, or loan used vehicles with unresolved safety recalls. This is intended to keep recalled used vehicles out of consumer hands unless an exception applies.
  • Dealers: Dealers who meet the bill's dealer definition cannot sell recalled used vehicles until the recall is fixed, unless an exception applies. If a dealer keeps a vehicle because a manufacturer has not provided a remedy, the manufacturer must reimburse the dealer at a rate set by the Secretary (not less than 1% of fair market value per month) until the remedy is available or payments reach the vehicle's fair market value.
  • Manufacturers: Manufacturers must make remedies available or reimburse dealers when remedies are delayed, subject to limits in the bill.

Expenses#

The bill specifies a reimbursement requirement (at least 1% of fair market value per month, prorated daily) that manufacturers must pay dealers when a remedy is unavailable. No publicly available information on overall budgetary costs, federal spending effects, or broader economic impacts is provided in the bill text.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.