Page 48 - GIADA-Dec 2017-Final

RECALLS

Total Recall

From Acquisition at the Auction to the Sale to a Customer, Transparency
is the Key to Dealing With Recalled Vehicles

By Jim Stickford
Recalls of automobiles are just a fact of life.

Which means independent dealers will at
some point have to deal with inventory that
is under an open recall.

The question is, how should they handle it?
Recalls have become a major concern for
dealers as the number of recalled vehicles
has soared, setting records each of the past
three years. In 2014, that number jumped
from around 20 million the previous year to
more than 50 million, and it has continued
to climb since, reaching the current record
of 53.2 million vehicles last year.

The issue made national headlines when
news broke of the massive Takata air bag
recalls and Volkswagen’s admission of
installing devices on diesel vehicles to
cheat emissions tests, which made 2015
“the Year of the Recall,” said Karyn Wrye,
senior director of legislative affairs for Cox After the website was launched, NAAA for and that buyers use NHTSA’s VIN lookup
Automotive and a member of the National the first time issued a statement advising tool on each vehicle being considered for
Auto Auction Association’s editorial car sellers on how to describe the material purchase to ensure awareness of all material
committee. facts of a vehicle they were trying to sell. facts prior to bidding on vehicles.”
The result was greater scrutiny of auto The statement pointed out the VIN lookup Wrye said NAAA’s statement showed just
manufacturers and an increase in recalls tool at www.safercar.gov provides open how much of a game-changer the NHTSA
ordered by the federal government. recall status on vehicles and urged buyers website and lookup tool was for the retail
and sellers to use it and to disclose any open car business.
“I was co-chair of NAAA’s Legislative recalls found.
Committee in 2015,” Wrye said. ”In “It’s something dealers shouldn’t ignore,”
addition to a lot of recalls, that was the year “A seller will build credibility in its product she said.
the federal government came out with the and a buyer will have more confidence in its
www.safercar.gov website. That was a big purchase decisions when there is disclosure Attorney Jason McCarter, a partner with
deal.” and/or awareness of all material facts about the firm Eversheds-Sutherland U.S., has
a vehicle being offered for sale/considered written and spoken frequently at industry
It was important, Wrye said, because for the for purchase,” the statement read. events on how dealers should handle recalls.
first time, the website created by the National
Highway Traffic Safety Administration “As such, NAAA recommends sellers use While independent dealers are not
gave everybody – consumers, car dealers NHTSA’s VIN lookup tool on each vehicle specifically required by federal law to
and wholesalers – access to the list of all registered for sale and provide disclosure to inform consumers that a vehicle the dealer
vehicles currently under recalls, searchable buyers of such information in the event an has for sale is under an open recall, that
by a vehicle’s VIN. open recall exists on any particular vehicles, doesn’t mean a dealer can’t get into legal

46 | GIADA Independent Auto Dealer DECEMBER 2017