“Total Loss Disclosure” Legislation Introduced in the House

“Total Loss Disclosure” Legislation Introduced in the House

Rep. Cliff Stearns (R-Fla.), joined by Rep. Charlie Bass (R-N.H.) and two of their House colleagues, introduced legislation last week to require that totaled vehicles are permanently flagged to ensure that consumers and auto retailers know exactly what they are buying. The Damaged Vehicle Information Act, H.R. 6093, requires the National Highway Traffic Safety Administration to ensure that the VINs of totaled, flood-damaged, and stolen vehicles are publicly disclosed.

Access to this information will allow consumers and dealers to make informed decisions about the safety and fair market value of used cars. Last year alone, more than five million vehicles were totaled. Some of them are resold at salvage auctions, rebuilt and re-enter the market with a clean vehicle title. Unsuspecting consumers and dealers may buy these rebuilt wrecks without being aware of the extensive damage to the vehicle.

The bill corresponds to similar legislation (S. 3707) introduced by Senator Trent Lott (R-Miss.) several months ago. The introduction of this bill came at the urging of more than 500 NADA members who were on Capitol Hill this week to lobby their members of Congress on this issue, death tax relief and in opposition to the so-called “right to repair” bill.