Tennessee DMV Recall Update

Tennessee DMV Recall Update

ARTICLE DISCLAIMER: TNIADA cannot give legal advice directly. The association can only refer you to a source for legal help if needed. TNIADA mission is to help all dealers stay in the know of important legislative news and information that directly affects their business. Please seek outside legal counsel for any verification or further information.

TNIADA reached out to the TN-DMV on behalf of several requests from members who were concerned about vehicle recalls in the state and this was the DMV response:

((“On Jan. 1, 2018, Tennessee became the first and only state in the U.S. to enact a law that eases restrictions against automobile dealers who profit from selling recalled vehicles to consumers without first performing safety recall repairs.

Also known as “The Motor Vehicle Recall and Disclosure Law,” used car dealers are now allowed to sell vehicles that have been recalled for safety defects as long as the buyer signs a disclosure form.

Under the law, the only warning car dealers must provide buyers about safety recalls on vehicles is through a signed disclosure form. The new law only requires dealers to repair used vehicles if the safety recall database the dealer chooses to check indicates the manufacture has issued a “do not drive” or “do not sell” warning.

The main issue is the law is that it could make it easier for dishonest car dealers to sell unsafe and defective vehicles to unsuspecting consumers. The law could lead to Tennessee becoming a “dumping state” for unsafe recalled vehicles that dealers in other states cannot sell.”))

This is the Summary and actual statute


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