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Power’s vice president of vehicle analysis and analytics, told us that auto dealers, if they were forced to repair recalls for used cars, would likely try to determine whether the remedy was available, and, if not, calculate an expected timeframe for the remedy based on past recalls of similar complexity. “And now they come running and saying, well, we don’t have the parts and how can you penalize us financially?” Lower Trade-in Values We’re in this situation because of the industry’s malfeasance,” Gillan said in an interview with us. Jacqueline Gillan, president of Advocates for Highway and Auto Safety, disagrees with the current law, and likened the situation to flying a commercial jet with an unfixed recall: Passengers simply wouldn’t board. Any prohibition on the sale of these cars “is likely to cause substantial issues for auto dealers and consumers.” Older cars and those with less significant problems have lower compliance rates for recalls, J.D. The severity of issues being recalled in general also varies, from minor consequences to those that result in significant risk of death. One repair part delay was a staggering 704 days. Power and Associates found, more than a third had repair delays of more than 90 days.
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The variance in potential repair delays was huge: While some recalls between 20 had no delays, J.D. From 2010 to 2014, the delay for replacement parts under recall was an average of 60 days.” “Dealerships cannot repair vehicles until the manufacturers provide the required remedy and parts. Opponents of the bill say a ban on the sale of used cars with open recalls would keep some cars in limbo for weeks waiting for parts, ultimately reducing their trade-in value.īills to prohibit the sale of used cars with open recalls for which the manufacturer has sent out an alert “are overly broad because the majority of vehicle recalls do not require the drastic step of grounding the vehicle,” the National Automobile Dealers Association wrote in September. Blumenthal led the charge to ban the sale of used cars with unaddressed safety alerts but, amid pushback from new-car dealers, his proposal didn’t make it into the last federal highway bill, which Congress passed in late 2015. Richard Blumenthal (D-Conn.) tried to do just that. To overturn the loophole would take an act of Congress, and Sen.
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Safety advocates claim the loophole puts drivers and consumers at risk, while a major automotive group says a ban on such sales would reduce values for owners who are trying to trade their cars in. It’s called “the used-car loophole,” and the fight to change it turns up plenty of debate. No federal law bans dealers from selling used cars with safety recalls that have not been addressed. Related: Recall Basics: Everything You Need to Know This information is available through services like Carfax, however. Many salespeople do not even openly reveal a vehicle’s recall status to potential buyers. But auto dealers can still sell cars with dangerous problems, from faulty Takata airbag inflators to bad GM ignition switches. CARS.COM - Federal law prohibits dealers from selling new cars, trucks and SUVs with recalls that have not been fixed and rental car companies from renting an unfixed car.