Sponsors (3)
The bill improves safety for used-vehicle buyers and clarifies federal definitions while shifting costs onto manufacturers (and likely consumers) and leaving gaps that allow some recalled vehicles to still change hands.
Consumers buying used cars: dealers are barred from selling, leasing, or loaning recalled used vehicles until defects are remedied, reducing the chance that buyers receive unsafe recalled cars.
Small-business car dealers: manufacturers must provide monthly reimbursement (at least 1% of fair market value) starting 60 days after recall notification until remedy or full buyback, reducing dealer financial losses from immobilized recalled inventory.
Dealers and regulators: establishes a clear federal definition of 'used motor vehicle,' reducing legal ambiguity for transactions and enforcement.
Manufacturers (and ultimately consumers/taxpayers): mandatory reimbursements create added costs for manufacturers that may be passed on to consumers through higher new-vehicle prices or otherwise borne by taxpayers.
Consumers buying from small-volume dealers or private sellers: sellers who sell fewer than five vehicles annually and private-party sellers can still transfer recalled used cars, leaving a gap in consumer protection.
Small-business car dealers: while reimbursements reduce losses, dealers still may face inventory and cash-flow strain while awaiting remedies, potentially increasing costs or forcing write-downs.
Based on analysis of 3 sections of legislative text.
Requires manufacturers to reimburse dealers for recalled used vehicles when remedies are unavailable and bars many dealers from selling unrepaired recalled used vehicles.
Introduced September 30, 2025 by Richard Blumenthal · Last progress September 30, 2025
Requires manufacturers to reimburse dealers who hold used motor vehicles that are subject to a safety recall when the manufacturer has not yet provided a remedy, and stops many dealers from selling, leasing, or loaning used vehicles with unrepaired recall defects. The bill defines “used motor vehicle,” sets a minimum monthly reimbursement rate tied to the vehicle’s fair market value, and lists limited exceptions to the sales prohibition. The rules apply to dealers who sold five or more vehicles in the prior year and take effect one year after the law is enacted. The Secretary of Transportation sets the reimbursement rate (not less than 1% of fair market value per month) and enforces the recall-reporting and remedy requirements.