Can A Dealership Sell A Car With Recalls?

Federal law makes it illegal for new car dealers to sell new vehicles with open safety recalls, but most states still allow dealers to sell used cars with unrepaired recalls.

Manufacturers need to fix cars free of charge if replacement parts are readily available but dealers insist that buyers check recalls themselves since there's no way to cover all used cars across the country.

The National Highway Traffic Safety Administration points out that all recalls involve safety concerns and lawmakers are pushing for new federal legislation that would require dealers to inform customers about recalls or stop selling unsafe used cars.

At Easy Lemon, we make the Lemon Law simple, accessible, and actionable for you. Our legal team has helped vehicle owners work through vehicle recall issues. Schedule a free case evaluation today.

This guide explains important things that people buying cars should understand about recalls. It also covers when dealerships are allowed to sell cars that have been recalled and how to avoid significant problems caused by safety violations.

What Are Vehicle Recalls?

A vehicle recall is issued if there's a defect that affects safety or if something in the car doesn't meet federal standards for safety.

A manufacturer or the National Highway Traffic Safety Administration (NHTSA), which is the federal body responsible for overseeing safety of vehicles, determines that a problem poses a risk to drivers and orders it fixed.

When a recall is initiated, manufacturers must send notices to registered owners by mail and they must fix the defect free of charge regardless of how many times ownership has changed for that vehicle.

As of 2025, based on estimates from CARFAX reported by NASDAQ, around 58.1 million vehicles, about one in five cars on U.S. roads, still have at least one open recall. More than 14 million have multiple open recalls.

The point of a recall is safety, not customer service. Recalls exist to pull dangerous defects off the road before they hurt someone. That's why a recall is free regardless of whether a car is old and no longer covered by warranty: the benefit follows the vehicle rather than the person who originally owned it.

What Are the Common Causes of Recalls?

Recalls cluster around systems that can kill or injure someone when they fail, and airbags top the list. The Takata airbag recall became the largest and most complex safety recall in U.S. history, covering tens of millions of vehicles across Honda, Ford, Chrysler, and most other major automakers.

It's also associated with more than two dozen fatalities and hundreds of injuries in the United States alone. Brakes and seat belts fall into the same high-stakes category.

Beyond that, recalls usually trace back to issues with faulty ignition switches and problems in the fuel systems that can pose a fire risk. Increasingly, too, there are issues with software that affect things like brakes or steering or driver assistance.

The trend matters for buyers because a modern car is as likely to be recalled for a coding error as for a cracked part; a recall of software problems can be just as serious as a mechanical one.

Can Dealerships Sell Cars With Recalls?

The legal rules for recalled vehicles depend almost entirely on whether the car is new, used, or part of a rental fleet.

Federal law forbids dealers from selling new vehicles if there are open safety recalls. But many states allow dealers to sell used cars with unrepaired recalls, even though manufacturers are required to fix these defects free of charge.

Some states require written recall disclosures, and lawmakers in several states have introduced bills aimed at limiting sales of used vehicles with serious safety defects. The table below explains the three situations buyers encounter most often and how the law changes in each one.

Federal law is quite clear for new cars: dealers can't deliver them if there are recalls that haven't been fixed yet. But there's a way around this for used cars.

Federal law does not require that used car dealers fix, or even check for, any open recalls before they sell a car. The NHTSA has also publicly asked Congress for permission to prohibit sales of used vehicles that still have unresolved recalls but Congress hasn't given that permission yet. So this gap still exists.

Rental companies are the exception that proves the rule. Under the Raechel and Jacqueline Houck Safe Rental Car Act, passed as part of the 2015 FAST Act and effective June 1, 2016, any company with a fleet of more than 35 vehicles must repair open safety recalls before renting or selling those cars. This is enforced by the NHTSA.

In 2023, NHTSA levied its first rental-agency fine on Zipcar and made it pay for putting cars with recalls back on the roads. Thus a major company that rents cars is now subject to a federal regulation that a used car dealer only a couple of blocks away is not.

A handful of states have tried to close the gap with their own rules, and more legislation is moving.

Various bills aimed at used-vehicle recall disclosure have been introduced in state legislatures around the country. The auto industry has strongly opposed most of these bills. At present, what we can take away practically is that rules vary from state to state; but generally speaking, the trend is toward more disclosure, not less.

What Happens When a Buyer Never Checks the Recall History?

Imagine that someone buys a used SUV from a dealership and at first glance the car looks fine. About three months later, the car stalls in traffic because of an unrepaired fuel pump recall the buyer never knew existed.

A dealer in a state that doesn't have a recall repair requirement might say that they legally sold the SUV because there was nothing in the law that prohibited them from selling that particular used car with an open recall.

In the end, the manufacturer will fix the defect free of charge; however, by that time the customer has already paid for having the vehicle towed, had diagnostic tests done, and missed work while trying to figure out what was wrong.

Based on what we have seen, this turns out to be a very common problem that buyers encounter. There's an issue that qualifies for free repairs, but the owners spend weeks or months with temporary fixes and then realize that there had been a known safety campaign tied to this problem right from the start.

Many people assume that dealerships will disclose important recalls before you buy a car from them. Sadly, this assumption is still problematic because recall protection laws for used cars often don't offer the same level of security that new car buyers expect.

What Are the Dealership Responsibilities for Cars With Recalls?

In an ideal scenario for a sale, a responsible dealer does three things: they check the recall status for each vehicle based on Vehicle Identification Number (VIN) before listing it; they take care of any open safety repairs that need to be done; and they give buyers documents that show the work has been completed.

For new cars, this step is mandatory. For programs dealing with certified pre-owned cars, most manufacturers require open recalls to be resolved before a vehicle can get the certification badge.

In reality, when you buy a used car, the truth tends to be even less generous. For dealers in many states, their main legal obligation is to avoid outright deception.

A dealer generally cannot falsely say we inspected it and it's safe because that crosses into deceptive practice, which the Federal Trade Commission can pursue under Section 5 of the FTC Act. But "we didn't tell you, and you didn't ask" is, in much of the country, still legal.

Are Dealers Required to Tell You About Recalls?

It's not always the case that dealers have to disclose recalls and this is where buyers often get confused. Whether a dealer must disclose an open recall varies depending on the state and on what the dealer actually knew. Many states use an actual knowledge standard.

A dealer only gets into trouble if they don't disclose a recall that they know about. But this creates an odd incentive not to check because dealers could later say they were unaware if they never check VINs at all.

Some dealers disclose voluntarily because transparency builds repeat business and protects them from liability. Others stay quiet unless a buyer asks directly.

Based on our experience, most people who need help in dealing with recalls are those who thought that dealers would offer them information about recalls and therefore signed documents without double checking. Either way, you can't just rely on dealers to disclose recalls; treat this as something you have to do yourself rather than their responsibility and verify things before signing.

What Challenges Do Dealerships Face With Recalls?

Recalls put big pressure on dealerships financially and legally, especially when cars lose value or just sit on the lot waiting for repair parts or replacements.

Regulators are paying more attention to dealers because the Federal Trade Commission is focusing harder on deceptive practices related to selling cars and disclosing safety information.

When it comes to major recalls, car dealerships often find themselves caught between manufacturers, regulators, and customers. Dealers typically don't produce faulty parts themselves either; many delays happen because replacement parts aren't available yet.

Handling this gets especially hard when there's a recall that affects millions of vehicles and where dealerships have lots of affected cars in stock but don't have much power to expedite manufacturer repairs or distribution of parts quickly.

That doesn't excuse failing to disclose known issues, but it does explain why some recall disputes become complicated even when dealers are working to follow the law.

While manufacturers are required to fix recalled cars free of charge, open recalls can still undermine customer trust and lessen bargaining power for dealers. Dealers also know that transparency is important: customers are more likely to return if they see recalls dealt with honestly and repairs completed promptly.

Inventory Management

A car that still has unresolved recalls is hard to sell. Prospective buyers who do some research walk away and the car keeps accruing storage costs while it just sits there.

When there is a recall with a parts shortage, a recurring issue with Takata airbags and other high-volume campaigns, repair delays can drag on for months, sometimes lasting longer than a year. Meanwhile dealers get stuck holding onto inventory they cannot responsibly sell.

Also there is a liability question here: if a dealer sells a car that hasn't been fixed and if later that defect leads to a crash, victims might have legal grounds to sue the dealer according to state law.

Customer Satisfaction

Recalls can tarnish reputations as well. Long delays for repairs really frustrate customers who simply want their car fixed and returned. Dealers caught concealing open recalls get reactions that end up in reviews and automotive news.

Good dealers know that clear and open communication is much less costly because buyers who feel they've been misled usually don't come back. Also, if an unfixed recall surfaces after the sale, it ruins the relationship completely.

What Are the Best Practices for Dealerships?

Dealers who do a good job handling recalls generally consider transparency to be an important part of service to customers rather than just something they have to comply with by law. This is especially significant because consumer protection laws related to recalls of used cars tend to be weak in many states; dealers can still legally sell some used cars that have open recalls.

High quality dealers frequently check recall databases from manufacturers and clearly communicate repair statuses to customers. They move quickly when manufacturers offer free recall repairs. Doing this right can actually improve customer loyalty: studies show that customers who have had recalls often come back to the same dealership for their next car purchase.

Proactive Recall Management

Good dealers do regular sweeps through all their stock to check for recalls; they don't only wait for customers to ask about them. Sales and service staff learn to spot recalls that are open and explain them clearly. They also work closely with manufacturers so repairs proceed smoothly rather than getting stuck or delayed.

A dealer who can quickly get a clean report of recalls for a car you're interested in and show you any repair documentation is saying something useful about how well their operations work.

Building Better Customer Relations

Great operators turn a recall into a chance to build trust. They provide backup cars or other solutions temporarily while the main vehicle is waiting for repairs. They also check back with customers later to confirm that the repairs worked properly and they make sure customers know that safety is important to them throughout this experience.

If you're weighing where to buy, watch how a dealer talks about recalls. If you've already been burned by one who didn't, it helps to know your options. Start with what to do when someone sold you a bad car, and if the vehicle was leased, look at whether you can return a leased car that has problems.

The 4-Part Recall Risk Check We Recommend Before Buying Any Used Car

Not every open recall carries the same level of risk. In our experience, the safest way to evaluate a recalled vehicle is to focus on a few practical factors before deciding whether the car is worth buying.

Some recalls just require fast updates of software or quick fixes that use easily accessible parts; other recalls involve vital safety systems and can keep drivers waiting months for a repair.

Easy Lemon advises buyers to use the following four-step framework for distinguishing recall issues you can manage from defects which might cause serious safety, financial or legal problems down the road.

1. Does the Recall Affect a Critical Safety System?

Airbags, brakes, steering systems, fuel systems, and fire-risk recalls should be treated with much greater care compared to cosmetic or software problems.

2. Are Replacement Parts Actually Available?

Recalls can drag on for months because manufacturers just can't get replacement parts fast enough. Of course, a free repair does not help much if the vehicle sits unsafe in the meantime.

3. Has the Vehicle Already Shown Symptoms?

If your car has stalled, is leaking fluids, overheating or shows warning lights related to a recall, then this indicates that there may be an active defect in the vehicle.

4. Is the Dealer Documenting Everything Clearly?

A reliable dealer should be willing to give you reports on Vehicle Identification Numbers (VINs), service documents, and written explanations about any open recalls before you sign anything.

Doing this helps buyers distinguish minor recalls from serious safety issues which might cause costly problems later.

Should You Buy a Car With an Open Recall?

Not every open recall is a deal breaker and the smart thing to do is to carefully consider each recall before making any decisions; don't treat them all as reasons to abandon a purchase or ignore them completely.

Buying a car with an open recall may be fine if the recall is small and free repairs are easily available. Check the Vehicle Identification Number (VIN), verify that parts are in stock, schedule the repair and just get on with it.

When recalls affect critical safety systems such as airbags or brakes, or when there is a shortage of parts, the repair could be stuck in limbo for months. That is when it gets risky.

An unfixed recall on a part that could fail catastrophically is a different decision than a software update you can get next week. Always evaluate the actual defect and the parts availability before you commit.

When clients ask if they should walk away from a deal because of an open recall, our usual response is that it depends on what exactly is recalled and whether you could get that issue fixed quickly enough.

A good tip is that if you get a real safety recall from a manufacturer, repairs are free for the life of the vehicle. But with things like service bulletins or programs aimed at improving customer satisfaction, there are usually mileage limits or deadlines after which repairs may cost money.

Don't just assume that whatever a dealer tells you about fixes is free forever; find out first which category this falls into.

How Do You Check if a Car Has a Recall?

Checking is fast, free, and the single most important thing you can do before buying. Every car carries a 17-character Vehicle Identification Number (VIN), usually visible through the windshield on the driver's side or on the door jamb sticker, and that number is the key to its recall history.

Enter your Vehicle Identification Number (VIN) into NHTSA's free recall lookup tool at nhtsa.gov/recalls to check for any current, unrepaired safety recalls specific to that car. Most manufacturers also have their own tools that sometimes provide additional details beyond what NHTSA lists.

To get a fuller look at a car, checking services such as Carfax will show recall history along with information on accidents and titles. Many buyers don't do this though. No matter if you buy directly from a dealership or from someone selling privately, check the VIN number before you hand over money; it takes about a minute.

What Can You Do if You Already Bought a Car With a Recall?

If you find out after you buy your car that it has some recalls outstanding, it is likely to frustrate you. What makes this worse is that dealers in many states are allowed to sell certain used cars with unresolved recalls.

The good news: manufacturers have to fix recalled safety issues free of charge regardless of who owns the vehicle. Usually, the quickest path is just to check if your car is actually recalled and then schedule repairs once parts are ready.

• Step 1: Don't panic. Look up the recall details so you understand whether it affects any systems that you shouldn't drive with until they get fixed.
• Step 2: Get in touch with an authorized dealer who sells vehicles of your brand. The manufacturer is responsible for fixing things and any dealership that sells cars from that same manufacturer should be able to do the repairs.
• Step 3: Schedule the free repair. Recall repairs are performed at no cost, regardless of how many owners the car has had, so don't let a dealer talk you into paying for a covered fix.
• Step 4: Keep all records. Save copies of the recall notice, the work order for repairs, and any communication you have with the dealer. If there's something wrong that the dealership cannot fix or if you feel you were misled when buying the car, having these paper documents will be important evidence if you want to pursue a claim later.

Owners typically make a common mistake: paying a shop directly for repairs that the manufacturer is legally required to perform free of charge. Recall repairs have to be done through an authorized franchise dealership for your specific brand; independents can't bill directly to the car maker even if they're able to do it themselves.

How Can You Protect Yourself Before Buying?

The time that you invest now in checking VIN recalls is much better than dealing with frustrations later on. Make sure to do a recall check before you purchase either from a dealer or from someone selling privately.

Have a mechanic who is independent and works directly for you do an inspection; this way any components that are recalled or defective are found and handled before they become your issue.

We usually suggest two things that people should do before buying any used car, as these things can help avoid most problems before they escalate into disputes. We also caution customers against relying solely on dealers being transparent.

The actual knowledge loophole means a friendly dealer may genuinely not know or may simply not say. This is where talking to someone who handles defective-vehicle cases pays off.

Easy Lemon helps consumers identify hidden issues and verify a vehicle's true condition before they buy; this helps avoid big surprises due to problems that aren't disclosed.

If a defect turns out to be something the manufacturer can't fix, our car lemon law team can walk you through whether you have a claim and how a buyback or compensation works in your state. If you're dealing with a dealer who wasn't upfront, it also helps to understand what kind of lawyer handles disputes with car dealerships.

Did the Dealership Sell You a Car With Recalls?

Most articles just consider whether selling recalled vehicles is legally permissible. This guide however focuses on a much more important consideration for buyers: whether the recall creates a realistic safety or financial risk after the sale.

Many consumers don't learn about recalls and their related rights until they've dealt with repair issues or safety concerns for months or even gotten into disputes with dealerships.

We focus on helping drivers evaluate whether a recurring defect crosses the line from a routine recall issue into a potential lemon law or consumer-fraud claim.

If you've purchased a car and later find out there was a recall that the dealer didn't tell you about, or if the same defect keeps recurring even after repeated repair attempts, then this is something to investigate further.

Easy Lemon offers services to protect consumers from defective new and used vehicles. When the manufacturer fails to act on defects, you can find us on Google and contact us today for your free consultation.

Can a Dealership Legally Sell a Car With an Open Recall?

The difference is stark between new cars and used cars and understanding this distinction is really important here.

When buying a new car from a franchise dealer, they generally may not deliver a car that has an open safety recall until the repair is done.

Federal law does not set the same restrictions for used cars: dealers are allowed to sell cars with unrepaired recalls under normal circumstances. So it is important that you check the Vehicle Identification Number (VIN) yourself before buying such a car.

Under federal law, a recall repair must be free. Under 49 U.S.C. §30120(g)(1), there is no requirement for recalls to be free if the car was sold to its first owner more than 15 calendar years prior to when the recall notice was sent out. If the item being recalled is tires, this time limit is five calendar years instead.

Inside that window the manufacturer pays for parts and labor, and it makes no difference whether you are the first owner or the fourth.

Note what the clock measures: the date of the first purchase, running to the date the recall notice was issued. It is not the age of the vehicle when you happen to bring it in.

When does a recall become a lemon law claim?

An open recall is not itself a lemon law claim. It becomes one when the recall repair is attempted and fails, because that failed attempt counts toward the state threshold — four attempts in Texas, three in Arkansas and New Jersey, four or 30 cumulative days in Nevada under NRS 597.630. Keep every repair order, because the order is what proves the attempt was made and what was reported.

If a dealer failed to disclose a known open recall at the point of sale, the stronger claim is often a state consumer-protection claim for concealment rather than a warranty claim, and those statutes carry their own, often short, deadlines.

Frequently Asked Questions

While putting together this blog post, we ran into recurring questions that buyers frequently ask about dealerships and vehicles they have purchased which have had open recalls. We tried to address these questions as well as we could.

How Can I Check if a Car Dealership Is Selling a Car With Recalls?

Ask your salesperson to provide you with the Vehicle Identification Number (VIN) and then use NHTSA's free tool at nhtsa.gov/recalls before you buy to look into whether there are any ongoing safety recalls specific to this vehicle. That tool lets you know if any recalls haven't yet been carried out, whatever the dealer tells you.

What Should I Do if I Bought a Car With Recalls From a Dealership?

Reach out to an authorized dealer to schedule a free repair of recalls for your car as the manufacturer will pay for it regardless of who owns the vehicle. Keep your records for repairs and if the dealer concealed a known recall or the defect can't be fixed, consider talking to a lemon law attorney about your options.

Are Car Dealers Required to Fix Recalls Before Selling a Car?

For new cars, yes, federal law prevents selling one that has open recalls. Used cars do not have any federal requirement to either fix or disclose recalls; however, some states have their own rules and rental companies have to fix recalls before selling.

Can I Negotiate the Price of a Car With Recalls at a Dealership?

Sure, an open recall is an important negotiating tool and especially valuable if there are major problems or delays with parts. Highlighting this recall and pointing out the risks or time that might be involved can be used to negotiate for a lower price or to insist that repairs are done before you take delivery.

How Do Recalls Affect the Resale Value of a Car From a Dealership?

Yes, you can sell or trade in a car with an open recall, but an unfixed recall can lower its resale and trade-in value, because savvy buyers and appraisers consider any open defects and the hassle involved in having those repairs made. Completing the free recall repair and keeping records is good protection for the value of your vehicle when you sell or trade it in.

Legal Disclaimer: This article is for general information only and is not legal advice. Laws governing vehicle recalls and the sale of recalled cars vary by state, and whether a specific situation gives rise to a claim depends on the facts and your state's statutes.

Past results do not guarantee future outcomes. For advice about your circumstances, consult a licensed attorney in your state.