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Rental Car Companies Must Fix Recalled Vehicles Under Proposed Law

When a vehicle recall is issued, owners are notified and told to bring the vehicle into an authorized dealer to get the parts associated with the auto defect repaired or replaced. But what happens to recalled vehicles owned by rental car companies? What about dealers selling recalled vehicles on used car lots? Are these companies allowed to rent or sell vehicles that have been recalled but not repaired?

No federal laws currently require rental car companies and used car dealers to repair recalled vehicles before renting or selling them to consumers – something the U.S. Transportation Secretary and National Highway Traffic Safety Administrator hope to soon change with a newly proposed law.

Under the GROW AMERICA Act, rental car companies and used car dealerships would be required to fix recalled vehicles before the vehicles reach customers.

“Requiring rental car agencies and used car dealers to fix defective vehicles before renting is a common-sense solution that would make our roads safer. Safety advocates and the rental car industry have taken a stand for safety, and we need Congress to do so as well,” Transportation Secretary Anthony Foxx said in a press release.

 

Dangers of Driving an Unrepaired Recalled Vehicle

Car dealers and rental car agencies have not been required by law to either disclose the fact that a vehicle they are selling or renting has been recalled, nor are they required to repair the vehicle before offering it for sale or rent. This has put countless unsuspecting consumers at risk over the years. In most cases, customers were completely unaware that the vehicles they rented or bought could pose serious dangers.

In one instance, The New York Times reported that a vehicle owner lost his life when the airbag in his vehicle exploded, sending a shard of metal into his neck. The victim did not know that the used car he purchased from a local dealer had been recalled for a defective airbag. When The New York Times conducted a review of the other used cars for sale by the dealer, its investigation revealed that nearly half had been recalled, yet none had been repaired.

This is a major problem, as U.S. rental car market data gathered by Auto Rental News shows that in 2014, there were total of 2,073,311 rental cars in service at Enterprise, Hertz, Avis and other rental car companies at more than 21,000 different locations in the U.S. If even 1 percent of those vehicles has a recall, that would affect 20,000 rental cars.

NHTSA estimates that within the past seven years, more than 900 recalls have been issued covering at least 50 million vehicles. A few of the most recent and significant vehicle recalls include:

 

GM ignition-switch recall

The ramifications of this recall are still being felt. The Wall Street Journal recently reported the death toll from GM’s faulty ignition switch has risen to 77, with another 141 confirmed injury claims. In total, more than 15.6 million GM vehicles were recalled in 2014, 2.6 million were directly connected with the faulty ignition switch.

 

 

Takata airbag recall

The Takata airbag recall affected 17 million vehicles from 10 different automakers. The reason for the recall was that the faulty airbags are capable of deploying in an explosive manner, causing serious injury or death to occupants. At least five deaths and more than 100 injuries have been conclusively linked to the recalled airbags.

 

How Do I Know If the Vehicle I Am Buying or Renting Has Been Recalled?

NHTSA provides a website consumers can use to determine if a vehicle they are about to buy or rent is subject to a safety recall. While this site does not cover all recalls, particularly when all VINs have not yet been identified, it does provide some level of assurance.

The newly proposed law however, would help enforce the repair of any safety recalls in vehicles owned by rental car companies or used car dealers, giving consumers greater peace of mind.

Regardless of whether the proposed law is enacted, it is important to remember that victims of defective vehicles may be entitled to compensation from responsible parties, such as a manufacturer or a rental car agency. An experienced car accident lawyer can help you explore your legal options.

 

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