FTC Being Asked To Investigate CarMax Practices Of Selling Used Non-Repaired, Recalled Cars

Several consumer and auto safety organizations have put a petition into the Federal Trade Commission about the vehicles CarMax, a used car sales company, is selling. If the FTC supports the organizations, CarMax would have to immediately stop advertising their vehicles as being certified and quality inspected so long as the recalled cars have not been repaired.

Consumers Union is one of many safety and consumer organizations that are upset by CarMax still selling the unrepaired, recalled vehicles to paying customers.  According to the petition, CarMax and other vehicle dealers should ensure the vehicles they’re selling are not a part of the recall and, if they are, to be repaired before being sold.

The disparagement comes mainly from the fact of the advertisement of CarMax, which states it’s got a 125+point inspection on every vehicle it sells. This could mislead customers into thinking recall issues have already been repaired.

N.Y. Dem. Sen. Charles Schumer has backed the request, saying car dealers selling used cars should not be selling those vehicles that have a safety recall attached to them.

CarMax is trying to steer clear of any responsibility, saying it supports any legislation that forces automakers to repair recalled vehicles before the sale so long that manufacturers enable used car dealers to make repairs too.

The company said new car manufacturers do not authorize used car retailers like CarMax to make repairs. CarMax wants the repair tools, parts and diagnostic information that franchise dealers currently get.

CarMax says that due to all the restrictions imposed on it, the company doesn’t have the necessary resources to fix the recalled vehicles before they are sold to consumers.  Of course, there is currently no legislation that forces CarMax to sell the vehicles.

According to the company, it gives consumers enough information to register their newly bought vehicle with the manufacturer in cases of possible recalls. CarMax said it wants automakers to be made to send recall notices out to the used car dealers. At this time, it’s hard to investigate the recall status of all their used vehicles. But, this is what CarMax has asked its customers to do for themselves.

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Posted by on Jun 25 2014. Filed under Business, New. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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