Sponsors (3)
Official title: Prohibit the sale, lease, or loan of used motor vehicles with open recalls to consumers by auto dealers.
Introduced September 30, 2025 by Richard Blumenthal · Last progress September 30, 2025
The bill improves consumer safety and disclosure for used-vehicle purchases and protects small dealers with interim reimbursement, at the cost of potential short-term reduced used-car availability, higher prices, and additional burdens for small sellers and dealers.
Used-vehicle buyers (consumers, middle-class families) are less likely to receive unsafe recalled vehicles because dealers cannot sell, lease, or loan a used vehicle with an unrepaired safety defect.
Small dealers and independent sellers receive mandatory interim reimbursement from manufacturers (at least about 1% of fair market value per month) for holding unrepaired recalled used vehicles, helping cover holding costs and reduce dealer losses while repairs are pending.
Buyers gain clearer disclosure and more consistent protections because the law creates a uniform definition of 'used motor vehicle' and ties dealer obligations to federal recall/notification systems.
Middle-class buyers may face higher prices or fewer choices in the short term because some used vehicles could be withheld from sale while recalls are addressed, reducing available used-car supply.
Small dealers may suffer cash-flow strain and higher inventory costs if manufacturers delay remedies or reimbursement is slow/disputed, which could threaten small businesses or push costs onto consumers.
Manufacturers could attempt to pass reimbursement or compliance costs downstream, leading to higher used-vehicle prices for consumers.
Based on analysis of 3 sections of legislative text.
Defines "used motor vehicle," requires manufacturers to reimburse dealers for unavailable recall remedies at a minimum monthly rate, and bars dealers from retailing used vehicles with open recall defects except for narrow exceptions.
Creates a new legal definition of “used motor vehicle,” requires manufacturers to reimburse dealers when a recall remedy for a used vehicle is unavailable, and stops dealers from selling, leasing, or loaning used vehicles with open safety recall defects except in narrow cases. The reimbursement runs from 60 days after the manufacturer-specified notice date until a remedy becomes available or payments equal the vehicle’s fair market value; the bill becomes effective one year after enactment.