According to a recent report, senate officials, auto industry executives and other interested parties were engaged in closely held negotiations during the weekend over an upcoming proposal to have recalled used cars repaired before being sold.
The new mandate, if greenlit, would be one of the most important auto safety reforms in years and also deliver a serious challenge to the nation’s 17,000 dealers that buy and sell millions of used cars annually. There are not details on how would it cover the vast array of used cars on sale in the US or whether it would gain support from the Republican majority in the Senate. Currently, the law only mandates dealers to repair new vehicles if recalled before they are sold. It’s allowed for both dealers and individuals to sell a used car even if a recall has not been completed and prospective buyers are usually not even notified about pending recalls.
The new law is mostly supported by the Obama administration and numerous Democrats, but naturally auto dealers are all against it – claiming they would be forced to unnecessarily keep the vehicles while the recalled vehicles wait for the availability of replacement parts. A recent bill approved by the Commerce Committee last week made an incremental update to the practice – dealers would be allowed to sell unrepaired recalled used cars, though clients would have to be notified about the ongoing safety campaign. The panel also agreed to a last minute modification that disallowed the rental of a vehicle from rental car firms if it was under recall and had not been repaired yet.