New Jersey Senate Bill S1198

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires dealership to notify buyers of recalls on used motor vehicles for sale.

Impact

The enactment of S1198 would enhance consumer protection laws in the state by ensuring that buyers of used vehicles are made aware of any safety recalls that have not been resolved. This legislative action aims to increase transparency in the automotive market, allowing consumers to make informed decisions before purchasing a used vehicle. The law would impose a duty on dealers and could lead to legal ramifications if dealers fail to comply, helping to hold them accountable for consumer safety.

Summary

Senate Bill S1198 mandates that car dealerships disclose any outstanding recalls on used motor vehicles prior to completing the sale. Under this bill, it becomes unlawful for a dealership to sell or transfer a used vehicle if they have not verified the vehicle's recall status through the National Highway Traffic Safety Administration's (NHTSA) resources. If a recall is present, the dealer is required to inform the potential buyer about this recall and the status of any repair work associated with it.

Contention

One point of contention regarding S1198 is the balance between consumer protection and the operational burden placed on car dealerships. Some dealers may argue that the responsibility for checking recalls adds an additional layer of compliance that could be burdensome and may not always reflect the most current data. Despite this concern, proponents emphasize the critical importance of safety information for consumers in the used vehicle marketplace, suggesting that the benefits to public safety far outweigh the operational concerns of dealerships.