• Vehicle Recalls - Auto Dealer Update
  • October 9, 2017 | Author: Lance J. Kinchen
  • Law Firm: Breazeale, Sachse & Wilson, L.L.P. - Baton Rouge Office
  • Every dealer should have a recall policy. Every year, millions of vehicles become subject to safety recalls. A small percentage of these recalls involve "Stop Operation" or "Stop Sale" notices. Vehicles can be checked for status of recall notices at www.safercar.gov or www.nhtsa.gov. Your dealership should have a policy on how to handle new and used vehicles that are on your lot. The following are some potential steps you should consider if and when a dealership receives a recall notice:

    • For new vehicles in inventory or in transit: Once any notice of an outstanding safety recall is received, federal law prohibits the delivery of impacted new vehicles until the recall is remedied.
    • For used vehicles in for service, in inventory, or coming into inventory that are the same make as the dealer sells new: Federal law neither imposes an obligation on dealerships to know the safety recall status of used vehicles, nor prohibits the resale of used vehicles with outstanding safety recalls. However, it is recommended that used vehicles of the same make a dealer sells new be checked for outstanding, unremedied recalls since the dealership is authorized to make the repairs. If and when a dealership receives a recall notice indicating that certain used vehicles should not be operated and/or resold, they should not be operated or resold until the recall is remedied.
    • For used vehicles in for service, in inventory, or coming into inventory that are not of a make the dealer sells new: Federal law neither imposes an obligation of dealerships to know the safety recall status of used vehicles, nor prohibits the resale of used vehicles with outstanding safety recalls. However, Louisiana law may impose additional obligations