Sponsors (3)
The bill improves safety and disclosure for used-vehicle buyers but shifts costs and compliance burdens onto small dealers and, potentially, consumers through higher prices or reduced supply.
Middle-class families and other used-vehicle buyers are less likely to receive vehicles with unrepaired safety defects because dealers are prohibited from selling, leasing, or loaning recalled used vehicles until repaired.
Used-vehicle buyers get clearer, more consistent disclosure and protections because the law creates a uniform definition of 'used motor vehicle' and ties dealer obligations to federal recall/notification systems.
Small dealers receive mandatory interim reimbursement from manufacturers for holding unrepaired recalled used vehicles (at least about 1% of fair market value per month), helping cover holding costs and reducing some financial risk.
Small dealers and buyers may face higher costs and reduced availability: dealers can experience cash-flow strain while holding vehicles awaiting remedies or disputed reimbursements, some used cars may be withheld from sale (reducing supply), and manufacturers might pass reimbursement costs onto consumers, raising used-vehicle prices.
Smaller or casual sellers (e.g., those who sold fewer than five vehicles in the prior year) may face uneven regulatory treatment and compliance complexity compared with larger dealers.
Based on analysis of 3 sections of legislative text.
Requires manufacturer reimbursement to dealers for recalled used vehicles when a remedy is unavailable and bars dealers from selling recalled used vehicles until fixed, with limited exceptions.
Introduced September 30, 2025 by Richard Blumenthal · Last progress September 30, 2025
Requires manufacturers to reimburse dealers when a remedy for a recalled used motor vehicle is not available, and stops dealers from selling, leasing, or loaning used vehicles that are subject to safety defect or noncompliance notices until the defect is fixed, with limited exceptions. Reimbursement must be at a rate set by the Secretary of Transportation of at least 1% of the vehicle’s fair market value per month (prorated daily), beginning 60 days after the manufacturer’s specified date and continuing until a remedy is available or payments reach the vehicle’s fair market value. The law takes effect one year after enactment.