This bill aims to enhance consumer safety by prohibiting auto dealers from selling, leasing, or loaning used motor vehicles that have unrepaired safety recalls. It specifically mandates that dealers cannot transfer a used vehicle to a consumer until any defect or noncompliance requiring notification has been remedied. This measure applies to dealers who sell at least five motor vehicles annually, ensuring a broad impact on the used car market. To support this prohibition, the bill establishes a **dealer reimbursement** system: if a manufacturer fails to provide a remedy for a recalled used vehicle within 60 days of notification, the manufacturer must reimburse the dealer at a rate of at least 1 percent of the vehicle's fair market value per month. This reimbursement continues until a remedy is available or the total payments equal the vehicle's fair market value. Exceptions to the sales prohibition include situations where recall information was not publicly available, the vehicle is sold at wholesale, or it is a junk automobile reported to the National Motor Vehicle Title Information System.
Read twice and referred to the Committee on Commerce, Science, and Transportation.
Transportation and Public Works
Used Car Safety Recall Repair Act
USA119th CongressS-2956| Senate
| Updated: 9/30/2025
This bill aims to enhance consumer safety by prohibiting auto dealers from selling, leasing, or loaning used motor vehicles that have unrepaired safety recalls. It specifically mandates that dealers cannot transfer a used vehicle to a consumer until any defect or noncompliance requiring notification has been remedied. This measure applies to dealers who sell at least five motor vehicles annually, ensuring a broad impact on the used car market. To support this prohibition, the bill establishes a **dealer reimbursement** system: if a manufacturer fails to provide a remedy for a recalled used vehicle within 60 days of notification, the manufacturer must reimburse the dealer at a rate of at least 1 percent of the vehicle's fair market value per month. This reimbursement continues until a remedy is available or the total payments equal the vehicle's fair market value. Exceptions to the sales prohibition include situations where recall information was not publicly available, the vehicle is sold at wholesale, or it is a junk automobile reported to the National Motor Vehicle Title Information System.