PROBLEM:
Thousands of wrecked, flooded, or stolen vehicles are sold with clean titles to unsuspecting consumers each year.
SOLUTION:
Congress can solve this problem by passing Vehicle Total-Loss Disclosure legislation so that consumers can make more informed decisions about vehicle safety and fair market value of used cars.
CURRENT STATUS:
Early in the 110th Congress, bills have been introduced in both the Senate and House to protect used car buyers—consumers, dealers, and auctions—from unknowingly purchasing a totaled vehicle. Sen. Trent Lott, R-Miss., a longtime advocate of salvage vehicle disclosure, introduced S. 545, the Passenger Vehicle Loss Disclosure Act, and Rep. Cliff Stearns, R-Fla., introduced H.R. 1029, the Damaged Vehicle Information Act. These bills are identical to legislation introduced late in the 109th Congress, but Congress adjourned before further action was taken.
NADA, and a coalition supporting efforts to require insurers to make total-loss data available to the public, is working with leaders on both sides of the aisle to garner bipartisan support for legislation to permanently "red-flag" flood-damaged, severely wrecked or stolen vehicles. NADA also testified before the Senate Commerce Committee on the legislation on April 11, 2007.
Last fall, Senate Republicans and Democrats on the Commerce Committte attempted to draft a consensus bill, but the unexpected retirement of Sen. Lott stalled action. NADA will continue to work with coalition partners to ensure further progress on the issue.
Dealers should contact their Members of Congress and urge them to address this important issue.
• A sample letter urging Senators to support S. 545 (doc). (Click here to find your Senators)
• A sample letter urging Representatives to cosponsor H.R. 1029 (doc). (Click here to find your Representative)
SUMMARY:
Five million vehicles are totaled by insurance companies each year. Many of them are resold at salvage auctions, rebuilt and then reenter the market with a clean vehicle title. Consumers could buy a rebuilt wreck without knowing the extensive damage to the vehicle.
Consumers and dealers need more complete VIN-based vehicle histories prior to purchase to make informed decisions about vehicle safety and fair market value.
The problem with totaled, flooded or stolen salvaged vehicles persists because state motor vehicle titling laws are confusing and incomplete. Insurance companies are not required to "red flag" total loss vehicles for consumers. Also, buyers do not have enough timely access to title data from DMVs or total-loss data from insurance companies.
NADA supports legislation to improve consumer access to passenger vehicle loss data by requiring insurance companies to make VINs of totaled vehicles commercially available to vehicle history providers.
For additional information, contact NADA Legislative Affairs office at (800) 563-1556 or email: legislative@nada.org.