Used Car Safety Recall Repair Act

Used Car Safety Recall Repair Act

This bill prohibits a dealer from selling, leasing, or loaning a used motor vehicle until a defect of the motor vehicle or motor vehicle equipment or noncompliance with a federal motor vehicle safety standard has been remedied, with specified exceptions.

The prohibition does not apply if

• the recall information regarding the used vehicle was not available at the time of sale or lease and was not on the manufacturer's website;
• notification of the defect or noncompliance is required, but enforcement of an order to notify of and remedy the defect or noncompliance is set aside in a civil action on a motion for change of venue;
• the used vehicle is sold at wholesale; or
• the used vehicle is a junk automobile with all required information reported to the National Motor Vehicle Title Information System.

If a vehicle manufacturer fails to provide the dealer with a remedy for a used vehicle's safety defect within 60 days, the manufacture must pay the dealer an amount that is not less than one percent of the fair-market value of the vehicle per month. The total payment amount may not exceed the fair-market value of the vehicle.