Executive Automotive Anaylst
NADA Used Car Guide
A new report by NADA Used Car Guide studies what would happen if federal legislation were enacted governing what happens after vehicle recalls. The “Used Car Safety Recall Repair Act” proposed earlier this year by Sen. Richard Blumenthal, D-Conn., was voted down by a senate committee; but trade-in values could be impacted if similar legislation were enacted removing all vehicles subject to a safety recall from the commercial marketplace from the time dealerships receive notice of a safety recall until the recall is remedied.
Average Trade-in Value Reduction of Recalled Vehicles Was $1,210:
Applies to vehicles studied in analysis for recalls initiated in 2014 to franchised dealers.
Average Trade-in Value Reduction Similar to Other Recalls from 2010 to 2013:
However, number of vehicles impacted by recalls was significantly less for these years.
Dealer-Sourced Cost Estimates Came from Survey of 800 Franchised Dealer Reps:
Included costs from shipping to out-of-brand dealer, and storing and insuring vehicle
waiting for repair.