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William Maley

Industry News: Dealers, Small Car Rental Companies Fighting For Exemption With Recall Vehicle Bill

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By William Maley

Staff Writer - CheersandGears.com

January 22, 2013

Last year, we reported on new legislation that wouldn't allow any rental-car company or car dealer to loan/sell any recalled vehicle before the necessary repairs have been made. Currently, only new vehicles cannot be sold unless the necessary repairs have been carried out. At the time, rental-car companies opposed the legislation, but have since agreed with it.

Now dealers and smaller rental-car companies are fighting for an exemption from this legislation.

Bailey Wood, spokesman for the National Automobile Dealers Association tells USA Today that dealers have a financial incentive to fix recalled cars quickly since manufacturers are paying for the work. However Wood adds that many recalls are minor and might not justify taking vehicles out of service.

"Not all recalls are the same. It could be a windshield wiper problem in Death Valley," said Wood.

Steve Jordan, chief operating officer of the National Independent Automobile Dealers Association says they have no problems with fixing vehicles with a recall notice. They would like a better notice of a recall.

"Philosophically, we don't have a problem fixing a vehicle that has an open recall notice -- as long as we know about it."

The General Accounting Office (GAO) reports that in 2009, sales of used cars totaled 11 million. The office has urged NHTSA to require them to make repairs before selling vehicles that are under recall as “many consumers may be unknowingly putting their lives at risk by purchasing a defective vehicle.”

"The agency believes that all vehicles under recall should be promptly repaired -- regardless of whether they are new, used, leased, or rented," David Strickland, the National Highway Traffic Safety Administration chief said in a statement.

Source: USA Today

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.


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Boy talk about complaining to unload their problem cars with no effort to fix things. This needs to be done, they should never be allowed to sell a car with any recall no matter how small. What might be considered small to one might be huge to another especially when that auto get sold on auction and ends up cross country.

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