The recalls address critical issues like failing brakes, engines that could catch fire, airbags that may cause harm, and doors that could unexpectedly fling open.
However, according to the National Highway Traffic Safety Administration (NHTSA), about one-fourth of recalled vehicles remain unrepaired.
Many of these vehicles end up on used-car lots, where dealers often resell them without addressing the recalls or informing buyers of the potential hazards.
Consumer advocates argue that the time has come for state and federal agencies to take action to protect motorists, passengers, and the public.
A store can face significant fines and lawsuits if it knowingly sells contaminated food or prescription drugs after a pharmaceutical company warns about harmful contaminants. So why do used-car sellers get away with selling dangerously defective vehicles?
There’s no justification for a business to sell a vehicle with an open recall. Used-car dealers, like any other seller, can easily check for unrepaired recalls by entering the vehicle’s 17-character VIN on the NHTSA website. Recalls can be fixed for free by visiting franchised dealers for the specific car brand.
Used-Car Dealers Are Offering Dangerous Vehicles
Car manufacturers are required to notify vehicle owners of recalls and offer free repairs, provided that a fix is available. Those who lease vehicles should expect to receive notices from either the manufacturer or their financing company.
It’s concerning that so many vehicles with unresolved recalls continue to be driven. According to NHTSA estimates, tens of millions of vehicles with known safety issues are still on the road.
The Consumer Federation of America reports that the number exceeds 70 million, and in September 2020, Carfax estimated that 57 million vehicles roughly one in five still had at least one outstanding recall.
Many of these vehicles eventually appear in the used-car market. Carfax estimates that one in six used vehicles for sale in the U.S. have unresolved recalls.
The most concerning case was a 2011 Hyundai Sonata listed on Edmunds.com by a used-car dealer in St. Paul, Minn. This vehicle had five unresolved recalls for issues affecting the airbags, seatbelts, brake lights, and the car’s ability to stay in “park,” as well as the possibility of engine failure while driving.
In addition to Edmunds, used cars were also listed on AutoNation.com, Autotrader.com, CarMax.com, Cars.com, and Carvana.com. Three of these companies—AutoNation, Carvana, and CarMax—sell their own vehicles, while the other three feature ads from dealers and private sellers.
One of the most alarming findings was that 24 vehicles with open recalls were listed for sale by dealerships that were new-car franchisees for the same manufacturers and were authorized to address defects in recalled vehicles. Among these vehicles were Volvo S60 sedans with unresolved recalls.
Weeks later, when the NHTSA database was checked again, 21 of the 24 cars had been sold, and 11 of these 21 vehicles were still on the road with open recalls.
Thirteen of the 24 cars were Ford Escapes, recalled for faulty door latches. A Ford spokesperson confirmed that the carmaker wasn’t surprised by the number of Escapes with open recalls, as the recall had been issued shortly before the research began.
However, Ford encourages franchised dealerships to complete all open recalls on used vehicles and requires dealers to address recalls for “Ford certified” used vehicles.
Some of the used cars listed with unaddressed recalls might have been fixed by sellers before delivery. A few dealer managers insisted that they never resell cars without resolving such issues.
However, after rechecking the NHTSA database three months later, researchers found that all but eight of 40 vehicles with open recalls were still unresolved.
Rachel Huett was shocked to learn in August 2020 that her 2008 Town & Country minivan, purchased six months earlier at Quality Chrysler in Greenwood, S.C., had four unresolved recalls.
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These recalls, some issued a decade earlier, were for defects that could cause a fire, make airbags deploy unexpectedly, or cause the engine to shut down, increasing the risk of an accident.
“I thought buying a Chrysler from a Chrysler dealership would be safe,” said Huett. “I thought I would have a safe vehicle for my kids, and now I turn around and find out it was really dangerous.”
Eric Mayne, a spokesperson for Fiat Chrysler, explained that the company urges its dealers to address recalls on used vehicles before delivering them to buyers, and this is a requirement for “Chrysler certified” vehicles. He described Huett’s case as an “anomaly.”
However, a spot check of the same dealership’s used-car inventory in October 2020 found three other used vehicles with open recalls, including a Ram pickup.
Car dealerships aren’t the only places where unsafe vehicles are sold. Private sellers, both knowingly and unknowingly, may offer dangerous cars.
Although private-party vehicles were not included in the survey, a few cars listed by individuals were found to have open recalls, including a 2015 Honda Accord with a potential fire risk and a 2014 Toyota Corolla with a defect that could prevent airbags and seatbelts from functioning properly.
Even the federal government has been found to sell defective vehicles. A 2016 investigation revealed that the General Services Administration (GSA) auctioned former government fleet vehicles with undisclosed open recalls.
Although the GSA now includes recall warnings in its listings, it still auctions vehicles without fixing these safety issues. As of July 2020, 124 out of 852 GSA vehicles for sale—nearly 15 percent—had unresolved recalls, prompting calls for legislative action.
Deaths, Injuries, and Damages
Selling defective vehicles without repairing them keeps unsafe cars on the road, posing risks to their owners, passengers, other drivers, and pedestrians.
While the car industry tends to downplay the dangers of some recalls, Jason Levine, executive director of the Center for Auto Safety, insists that every recall should be treated seriously. “There are only two reasons why a vehicle is recalled: A safety defect, or it’s violating a safety standard,” he explained.
Many deaths, injuries, and damages have resulted from vehicles with open recalls.
For example, the Takata airbag defect, responsible for the recall of vehicles like Shelton’s Infiniti, has caused 17 deaths and hundreds of injuries in the U.S., according to NHTSA. As of January 2020, an estimated 15.9 million Takata airbags remained unrepaired.
In 2017, Corey Jackson of Lemont, Ill., was knocked unconscious when the ignition failed in a 2008 Buick LaCrosse he purchased seven months earlier from a dealership. The failure, linked to a recall, disabled the engine, steering, brakes, and airbags, causing Jackson to crash into a tree.
Similarly, in December 2016, Bonnie Belanger’s 2013 Chrysler Town & Country caught fire while driving, caused by unresolved recalls. She had no idea the vehicle had open recalls for a defective window switch and another for a software issue affecting airbags.
Christine Teasley, who bought a 2013 Nissan Altima in 2016, experienced repeated incidents where the hood flew open due to an open recall that the dealer failed to address. After the second incident, she incurred significant damage to the car, which Nissan later repaired.
Used-Car Dealers Fail to Address Recalls
When a vehicle is traded in or sold to a dealer, any open recalls become the responsibility of the business. However, many dealers fail to take these issues seriously.
Federal law prohibits car dealers from selling new vehicles with open recalls, and the National Highway Traffic Safety Administration (NHTSA) has fined dealers who have violated this rule.
A similar law also prevents rental car companies with fleets of 35 or more vehicles from renting or selling cars with unresolved safety issues without first fixing the defects.
However, used car dealers regularly sell vehicles with open recalls without facing federal penalties. Why is this the case? After all, the recalls on used cars are just as serious as those affecting new vehicles or those rented or sold by rental companies.
Despite the absence of NHTSA oversight to compel pre-sale repairs, many used car dealers choose not to address recalls before selling. The reason? Many dealers find it too much trouble, especially when repairs cause delays.
Some independent used-car dealers claim that manufacturers’ franchisees are often unwilling to help, as they also sell used cars and prioritize their own repairs over those of competitors.
CarMax spokesperson Jennifer Bartusiak explained in an email, “Dealers are often more likely to provide timely recall repairs to customers rather than to a competitor, like CarMax, so we encourage customers to have recalls repaired at a manufacturer-authorized facility.”
Rather than take responsibility for repairs, many used-car dealers leave it up to customers to deal with recalled vehicles.
Car Buyers Often Unaware of Open Recalls
When shopping for a used car, many buyers are unaware of open recalls, as they are often not told about them. Most buyers don’t know how to check for recalls, nor do they realize they should.
Some sellers, however, do disclose any unresolved recalls. Companies like CarMax and Carvana, which sell cars from their own inventory, ensure buyers are informed of open recalls before completing a sale.
On the other hand, online platforms such as AutoNation, Cars.com, and Edmunds simply provide links to the NHTSA’s database, leaving it to shoppers to check for recalls themselves.
Of the six major websites we reviewed, only Carvana explicitly notifies shoppers about open recalls. For example, the website for a 2019 Toyota Corolla with a recall for a potential fuel pump failure stated: “OPEN RECALL. Carvana cannot provide a remedy but you can still purchase this vehicle.
Your local Toyota dealer will provide free services to remedy recalls.” Unfortunately, when we revisited the listing six months later, we found that the car had been sold, yet the NHTSA’s database indicated the recall had still not been addressed.
Despite Carvana’s good intentions, shoppers cannot always rely on it for accurate recall information.
We found a 2014 Ford Escape on its website that initially did not display a warning about an open recall one that was clearly listed on the NHTSA’s website and in the free history report offered by Carvana. After a week, the recall warning had been added to the listing.
Buyers can also check for open recalls by reviewing Carfax or Experian history reports, many of which are offered for free by sellers. However, some sellers do not provide these reports, forcing customers to pay for them.
“Certified” Used Cars Are Often Sold with Safety Defects
A car buyer might assume that there’s no need to check for open recalls if the vehicle has undergone a rigorous inspection or is labeled as “certified.” However, even cars promoted as “CarMax certified” may still have dangerous safety defects.
Many used vehicles on CarMax’s website are advertised as “CarMax certified,” after undergoing “an extensive reconditioning process to meet our high standards.”
However, CarMax’s “high standards” seem to allow for “certification” of cars that, based on the open recalls we found, could catch fire, stall at high speeds, or have airbags and seatbelts that may not deploy properly during a crash.
These settlements prohibit the companies from making such claims unless safety issues have been addressed or clear warnings are issued about open recalls.
However, these settlements don’t prevent dealers from selling recalled vehicles in the first place. The FTC and the New York attorney general stated that they lack the authority to impose such a restriction.
They hoped that the disclosure requirements alone would encourage dealers to address open recalls before listing the vehicles. Based on findings from Checkbook, this has not been the case.
The settlements are currently being challenged in court by groups such as Consumers for Auto Reliability and Safety, the Center for Auto Safety, and U.S. PIRG.
These advocates argue that the FTC has the authority to stop dealers from advertising recalled vehicles as safe and certified without sufficiently addressing the open recalls.
“The FTC violated its own mandate to protect the public by allowing false advertising for the safety of these vehicles,” said one advocate.
Also Read: How to Maximize the Resale Value of Your Used Car
What to Do Before Buying a Used Car
Before purchasing a used car, check for open recalls using the NHTSA’s online database, which requires the car’s 17-character VIN. If the ad does not provide a VIN, continue searching for another vehicle.
NHTSA’s website only includes recall information for vehicles from the last 15 years. For older cars, contact the manufacturer to inquire about open recalls.
Additionally, ask the seller for a Carfax or Experian history report. Many sellers offer these reports for free, and they can reveal other potential issues, such as accidents, insurance claims, or state lemon law declarations.
If you are considering buying a vehicle with an unresolved recall, insist that the seller address the recall before finalizing the deal. Make sure to receive documentation from the dealership to confirm the repairs were completed.
If the seller refuses to resolve the recall, choose a different car. As Levine pointed out, “There are 40 million used cars sold every year; we’re fairly certain you can find one without an open recall.”
Before finalizing any used car purchase, it is advisable to have the vehicle inspected by a trusted mechanic. This service usually costs between $100 and $200. You can also check our ratings for auto repair shops based on quality and price.
After purchasing the car, make sure to register it with the manufacturer to receive future recall notifications. If the manufacturer’s website doesn’t provide a registration option, ask one of their local dealerships for assistance.
For those who already own or lease a car, if you receive a recall notice or become aware of an open recall, take it seriously, no matter how minor the issue may seem.