USDOT: Rental Car Agencies and Used Car Dealers Should Be Required to Fix Recalls

USDOT: Rental Car Agencies and Used Car Dealers Should Be Required to Fix Recalls
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February 23, 2015

The U.S. Department of Transportation (USDOT) is calling on Congress to pass legislation that would prohibit rental car agencies and used car dealers from renting or selling vehicles subject to a safety recall without first making the necessary repair.

U.S. Transportation Secretary Anthony Foxx made the announcement on Friday joined by National Highway Traffic Safety Administrator (NHTSA) Mark Rosekind, along with elected officials, representatives from the rental car industry, and consumer safety advocates.

"Every vehicle under an open safety recall should be repaired as soon as possible," said Secretary Foxx. "Requiring rental car agencies and used car dealers to fix defective vehicles before renting is a common-sense solution that would make our roads safer. Safety advocates and the rental car industry have taken a stand for safety, and we need Congress to do so as well."

The GROW AMERICA Act, which the Obama Administration introduced last year, includes provisions that would require rental car agencies to remedy any safety defects under recall before renting a vehicle, and require used car dealers to do the same before selling a vehicle.

Under current law, all outstanding recalls on new cars must be fixed before sale. However, no similar federal provision exists for rental car agencies or used car dealers.

On February 2, 2015, the Obama Administration announced a plan to begin addressing the nation's infrastructure deficit with a $478 billion, six-year surface transportation reauthorization proposal. The proposal builds on the GROW AMERICA Act.

USDOT says that the plan makes critical investments in infrastructure needed to promote long-term economic growth, enhance safety and efficiency, and support jobs for the 21st century. The plan includes an overall NHTSA budget of $908 million, including increasing the agency's defect investigation budget to $31.3 million – approximately triple the current level.

Find out more about the GROW AMERICA Act.