S. 2956: Used Car Safety Recall Repair Act

This bill, titled the **Used Car Safety Recall Repair Act**, aims to enhance consumer protection regarding the sale of used motor vehicles that have safety recalls. The main components of the bill are outlined below:

Definitions

The bill provides official definitions relevant to the legislation. It specifies that a **used motor vehicle** is any motor vehicle that has been purchased for purposes other than resale.

Dealer Responsibilities

The bill imposes restrictions on auto dealers, marking the following key points:

• Dealers are prohibited from selling, leasing, or loaning used motor vehicles that have open recalls, meaning any safety defect or noncompliance that has not been addressed by the manufacturer.
• Dealers must ensure that any issues associated with a recall are remedied before they can sell the vehicle.
• Exceptions to this rule exist if the dealer can demonstrate that they were unaware of the recall information at the time of the sale or if the vehicle is defined as a "junk automobile".

Dealer Reimbursement

The bill includes provisions for dealer reimbursement under specific circumstances:

• If a dealer possesses a used motor vehicle that has an open recall and the manufacturer has not made a remedy available, the manufacturer must reimburse the dealer.
• This reimbursement continues until the manufacturer provides a remedy or until the total reimbursements equal the fair market value of the used vehicle.
• The reimbursement rate is set at not less than 1% of the vehicle's fair market value per month.

Effective Date

The provisions mentioned in the bill will take effect one year after its enactment, allowing time for auto dealers and manufacturers to adjust to the new regulations.

Enforcement and Compliance

The bill outlines enforcement mechanisms and compliance requirements to ensure that dealers adhere to the new rules regarding the sale of vehicles with open recalls. Areas of enforcement involve keeping detailed records and reporting to relevant authorities if necessary.

Exceptions to the Rules

There are certain exceptions under which dealers may be allowed to sell, lease, or loan used motor vehicles with open recalls:

• If the recall information was not available at the time of sale.
• If the vehicle is sold at wholesale.
• If the vehicle is classified as a junk automobile, with all required information reported to the National Motor Vehicle Title Information System.

Conclusion

The bill aims to prevent the sale of potentially unsafe vehicles to consumers and seeks to hold dealers accountable for the safety of the used cars they offer.

Relevant Companies

None found.