“A bill to prohibit the sale, lease, or loan of used motor vehicles with open recalls to consumers by auto dealers.”
No CRS summary available for this bill.
This section amends the motor vehicle safety recall remedy requirements (49 U.S.C. §30120) to address used motor vehicles (newly defined in 49 U.S.C. §30102(a)(14) as a motor vehicle previously purchased other than for resale) by (1) requiring manufacturers to reimburse dealers holding such vehicles when a recall remedy is unavailable by 60 days after the notification date under §30119(b), at a Secretary-determined rate of not less than 1% of the vehicle's fair market value per month (prorated daily) until the remedy is available or total payments reach fair market value (new §30120(f)(3)); and (2) prohibiting "dealers" (those selling at least 5 motor vehicles to non-resale buyers in the prior year) from selling, leasing, or loaning a used motor vehicle until any defect or noncompliance requiring notification under §30118(b)(2)(A) or (c) is remedied (new §30120(l)), subject to exceptions for unavailable recall information, enforcement orders set aside in court, wholesale sales, or properly reported junk automobiles. (Thus, these changes aim to prevent consumers from unknowingly purchasing used vehicles with open safety recalls while compensating dealers for tied-up inventory.)