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Amends 49 U.S.C. 30102(a) to modify punctuation/formatting in the matter preceding paragraph (1), add paragraph headings for paragraphs (1) through (13), and add a new paragraph (14) that defines 'used motor vehicle'.
Amends 49 U.S.C. 30120 by revising subsection (f) paragraph numbering and headings and by adding a new paragraph (3) to subsection (f) establishing dealer reimbursement rules when a manufacturer fails to make a remedy available for a used motor vehicle, and by adding a new subsection (l) that limits sale, lease, or loan of used motor vehicles until required defects/noncompliances are remedied (with defined exceptions and a dealer definition).
Creates a new rule for recalled used cars: when a manufacturer has not yet provided a fix for a recalled used motor vehicle, the manufacturer must reimburse the dealer for certain costs while the remedy is unavailable, and most dealers are barred from selling, leasing, or loaning that used vehicle until the recall defect is repaired (with listed exceptions). The bill also defines “used motor vehicle,” sets a minimum monthly reimbursement rate for dealers, limits total reimbursement, specifies which sellers count as dealers, and makes the whole law effective one year after enactment.
Adds a new definition for “used motor vehicle” meaning a motor vehicle that has previously been purchased other than for resale.
Amends 49 U.S.C. 30102(a) formatting (adds paragraph headings and adjusts wording in the matter preceding paragraph (1)).
Defines the term “dealer” for the new subsection (l)(1): a person who, during the 1-year period ending on the date of the sale, lease, or loan of a used motor vehicle, has sold at least 5 motor vehicles to buyers who in good faith purchased the vehicles other than for resale.
If a dealer is in possession of a used motor vehicle and the manufacturer has failed to make a remedy available by the specified date, the manufacturer must reimburse the dealer until either a remedy is made available or total payments equal the fair market value of the vehicle.
The date after which the manufacturer must begin reimbursements is 60 days after the date described in section 30119(b) and specified by the manufacturer either in a notification under section 30119(a)(5) or under section 30121(c)(2).
Primary effects fall on used vehicle dealers, motor vehicle manufacturers, and used car buyers. Dealers will face limits on selling or transferring recalled used vehicles while awaiting remedies, which can reduce available inventory and slow sales but are offset by mandated manufacturer reimbursements (subject to minimum monthly payments and an overall cap). Manufacturers will incur new short-term cash outlays to reimburse dealers and additional administrative burden to track reimbursable vehicles and payments. Consumers (used-car buyers) should see improved safety because more recalled defects must be fixed before dealers may sell, lease, or loan affected vehicles, though the policy could reduce short-term supply of used cars and affect pricing or dealer incentives. Independent repair shops may see increased demand when remedies become available. Lenders, lessors, and secondary-market actors could experience indirect impacts if restrictions change vehicle availability or dealer behavior. Overall, the law increases consumer protection and dealer financial safeguards while imposing new compliance and payment obligations on manufacturers.
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Read twice and referred to the Committee on Commerce, Science, and Transportation.
Introduced September 30, 2025 by Richard Blumenthal · Last progress September 30, 2025
Read twice and referred to the Committee on Commerce, Science, and Transportation.
Introduced in Senate