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119-s-2956119th CongressWALLET

Used Car Safety Recall Repair Act

Sponsored By: Senator Blumenthal, Richard [D-CT]

Introduced

Summary

Stops dealers from selling used cars with open safety recalls. This bill would define "used motor vehicle" as a vehicle previously purchased not for resale, create a dealer reimbursement system when manufacturers delay fixes, and take effect one year after enactment.

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  • Consumers: Buyers of used cars would get stronger protection from open recalls because the law targets vehicles previously purchased not for resale and bars many dealer sales until recalls are addressed.
  • Dealers: Dealers would generally be prohibited from selling, leasing, or loaning a used vehicle until its recall defect is remedied. Exceptions cover sales when recall information was not available, certain court actions, wholesale sales, and junk automobiles reported to the National Motor Vehicle Title Information System.
  • Manufacturers: If a manufacturer has not made a remedy available within the 60-day window tied to its safety notice, a dealer in possession would be reimbursed. Reimbursement must be at least 1 percent of the vehicle's fair market value per month, prorated daily, and cannot exceed the vehicle's fair market value.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

Manufacturers pay dealers when fixes delayed

If enacted, manufacturers would have to pay dealers when a recall fix for a used car is not available. Payments would start 60 days after the manufacturer sets the recall date. The minimum pay would be 1% of the car's fair market value per month, prorated by day. Payments stop when the fix is available or when total payments equal the car's fair market value.

New dealer rules for recalled used cars

If enacted, the bill would bar dealers from selling, leasing, or loaning used cars that have recall remedies open until the problem is fixed. A 'dealer' would be someone who sold at least five cars in the prior year to buyers who did not intend to resell them. Exceptions include wholesale sales, junk vehicles reported to the title system, cases where recall info was not available, and certain court pauses on enforcement.

New rules start one year later

If enacted, this bill and its changes would take effect one year after the date of enactment. Dealers, manufacturers, and buyers would not have to follow the new rules until then.

Sponsors & CoSponsors

Sponsor

Blumenthal, Richard [D-CT]

CT • D

Cosponsors

  • Sen. Markey, Edward J. [D-MA]

    MA • D

    Sponsored 10/7/2025

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 10/7/2025

Roll Call Votes

No roll call votes available for this bill.

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