Tuesday, June 28, 2011

Used car buyers may not be told of auto recalls


WASHINGTON (AP) — Used car dealers may be selling cars and trucks that have been recalled but not repaired because manufacturers don't send them the same recall notifications that are sent to franchised dealers, said a study by a government watchdog. Even if used car dealers or franchised dealers know of a recall, there is no requirement that they tell prospective buyers or make the repairs before a sale, said the Government Accountability Office study released Wednesday. Nor does the National Highway Traffic Safety Administration, which oversees auto safety, have the power to order dealers to make the repairs or to warn buyers.

The safety administration also lacks the authority to require automakers to inform used car dealers of recalls.
The situation "could pose a significant risk to the safety of millions of vehicle drivers and may have a negative impact on recall completion rates," the study said. "Many consumers may be unknowingly putting their lives at risk by purchasing a defective vehicle." More than 35 million used cars were sold in 2009, including 11 million sold by used car dealers. 

The study recommends the safety administration make its vehicle recall database searchable by VIN number and ask Congress to give it the authority to ensure car buyers are notified of recalls prior to sales.

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