How Dealerships Handle Auto Recalls (2024)

FAQs

What do dealerships do with recalls? ›

Dealerships are prohibited from selling new cars with open recalls. Automakers are typically required to fix recall issues for vehicles up to 10 years old. So if you're buying a new car from a dealer, an open recall shouldn't be an issue because the dealer must resolve any issues before selling the car.

When a car manufacturer determines that a certain car make and model has a safety-related defect, they issue a recall by notifying the owners about the exact safety issue. The manufacturer usually offers free repairs to maintain positive customer satisfaction ratings.

NHTSA is the federal agency responsible for car safety and recalls. If you encounter problems with a recall and your dealership or manufacturer cannot help, you can always file a complaint with NHTSA.

Some may take an hour or two, whereas others will take a few days. In some extremely rare cases, an automaker may buy back or replace your entire vehicle. However, this usually happens only if there is a defect that cannot be repaired.

yes. It functions similar to a warranty repair. The manufacturer provides the parts, and pays the dealer a predetermined rate for labor. This rate is generally substantially lower than “customer pay” work, which can lead to delays in doing this work, particularly among less scrupulous dealers.

According to the NHTSA, by law the manufacturer must choose one of three options for correcting the issue: Repair: The vehicle or part will be repaired by the manufacturer at no cost to you. Replacement: If the problem cannot be fixed, the manufacturer can provide you with another identical vehicle or a similar model.

Vehicle manufacturers issue a recall on certain models if they have safety-related issues. An existing salvage or flood title and an expired recall date are some things that can void your vehicle's recall. Fuel system leaks, exhaust system issues, and electrical malfunctions can trigger a recall.

Safety, Compliance, and Emissions Recalls do not expire. Affected vehicles remain eligible until the repair is completed.

If you do not want to replace the car, the manufacturer will give you a refund for the full purchase price. If the remedy is a free repair to fix or replace the defective car part, you generally do not have the right to return it or request a refund for your purchase.

Sometimes, a recall may escalate into a lemon law claim if the manufacturer fails to remedy the problem within a reasonable number of repair attempts. If you've already taken your car in for repairs related to a recall, and the issue persists after multiple attempts, you may have grounds for a lemon law claim.

What happens if you ignore a car recall? ›

Ignoring a recall on your vehicle can cost you more than one way. Some examples are legal ramifications, injuries, higher insurance rates and claim denials.

While it can feel like an inconvenience to have to take time out from your busy day to bring in your specific vehicle for repair, the good news is that you won't have to pay anything out of pocket when it comes to getting the work done. The issue will be fixed by the manufacturer at no cost if there's a recall issue.

Manufacturers voluntarily initiate many of these recalls, while others are either influenced by NHTSA investigations or ordered by NHTSA via the courts . If a safety defect is discovered, the manufacturer must notify NHTSA, as well as vehicle or equipment owners, dealers, and distributors .

Additionally, if a recall repair was not properly performed or did not fully resolve the issue, a second recall may be necessary to address the remaining concerns.

Dealerships and private sellers are permitted to sell used vehicles with open recalls. In addition, they are not legally required to make repairs — a buyer of a used car with an open recall would be able to have the defect fixed for free.

The seller may handle the repair for the used car recall for you. Recall laws vary by state, which means dealerships in your area may be legally required to make repairs before selling you a vehicle. That said, independent sellers are not required to repair used cars with an open recall under federal law.

Consumer protection laws require manufacturers and suppliers to bear the costs of all product recalls and any associated costs.

Dealerships take these unforeseen scenarios into account while valuing your used car and tend to offer a lower trade-in rate for vehicles with open recalls. Open recalls are often excellent excuses for some dealers to slash the resale price of your used car.