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At Auction, Vehicles With Fatal Flaws Buying at a Used Car Auction? What You Don’t Know Could Kill You
(about 13 hours later)
On Tuesday, two reporters from The New York Times visited a car auction held in Queens by the New York City Department of Finance.On Tuesday, two reporters from The New York Times visited a car auction held in Queens by the New York City Department of Finance.
It was a lesson in how consumers can purchase cars that have deadly defects and how sellers have few obligations to disclose those defects to the public.It was a lesson in how consumers can purchase cars that have deadly defects and how sellers have few obligations to disclose those defects to the public.
The department was auctioning 20 cars, which had probably been abandoned or towed, to a group of about 50 bidders. The vehicles were in various states of disrepair and no one had even bothered to remove trash from the interiors.The department was auctioning 20 cars, which had probably been abandoned or towed, to a group of about 50 bidders. The vehicles were in various states of disrepair and no one had even bothered to remove trash from the interiors.
The list of vehicles, along with their vehicle identification numbers, was posted on the department’s website before the auction. It took the reporters less than a half-hour to run all 20 cars through a federal database of safety defects. It showed that half of the cars had been recalled for various reasons, including faulty ignition switches and Takata airbags, which between them have killed or injured hundreds of people worldwide.The list of vehicles, along with their vehicle identification numbers, was posted on the department’s website before the auction. It took the reporters less than a half-hour to run all 20 cars through a federal database of safety defects. It showed that half of the cars had been recalled for various reasons, including faulty ignition switches and Takata airbags, which between them have killed or injured hundreds of people worldwide.
The vehicles’ inclusion in the database denoted that the recall problems had not been fixed.The vehicles’ inclusion in the database denoted that the recall problems had not been fixed.
The auctioneer at the sale made clear that all of the cars would be sold as is, even if they had been recalled. Buyers had to pay in cash, he said, and all sales were final.The auctioneer at the sale made clear that all of the cars would be sold as is, even if they had been recalled. Buyers had to pay in cash, he said, and all sales were final.
“There’s no buyer’s remorse,” the auctioneer, Dennis Alestra, announced through a loudspeaker. The warnings are reinforced on the Finance Department website, which says that “Purchasers have no legal recourse against the city.”“There’s no buyer’s remorse,” the auctioneer, Dennis Alestra, announced through a loudspeaker. The warnings are reinforced on the Finance Department website, which says that “Purchasers have no legal recourse against the city.”
But as the first cars were auctioned, there was no mention of the specific safety defects.But as the first cars were auctioned, there was no mention of the specific safety defects.
Three of the cars had the faulty Takata airbags, which have led to the largest automotive recall in United States history. An additional three cars, made by General Motors, had an ignition switch that could suddenly cut off a vehicle’s power, a defect that has killed more than 100 people and led to a $900 million penalty for the automaker.Three of the cars had the faulty Takata airbags, which have led to the largest automotive recall in United States history. An additional three cars, made by General Motors, had an ignition switch that could suddenly cut off a vehicle’s power, a defect that has killed more than 100 people and led to a $900 million penalty for the automaker.
The cars up for auction on Tuesday sat in a sea of defeated-looking vehicles in an outdoor lot, where potential buyers milled around to conduct cursory inspections.The cars up for auction on Tuesday sat in a sea of defeated-looking vehicles in an outdoor lot, where potential buyers milled around to conduct cursory inspections.
A man in a Yankees sweatshirt asked The New York Times to leave because Mr. Z Towing, where the auction was held, was private property. The reporters then observed the proceedings on the nearby sidewalk through a fence.A man in a Yankees sweatshirt asked The New York Times to leave because Mr. Z Towing, where the auction was held, was private property. The reporters then observed the proceedings on the nearby sidewalk through a fence.
Bidding started low, and some cars sold for just a few hundred dollars.Bidding started low, and some cars sold for just a few hundred dollars.
Auctions like this — fast-paced, cash-only, as is — tend to dispose of cars that have seen far better days. Sometimes, the buyers are licensed dealers who plan to flip the vehicles quickly. Other times they are sold for parts.Auctions like this — fast-paced, cash-only, as is — tend to dispose of cars that have seen far better days. Sometimes, the buyers are licensed dealers who plan to flip the vehicles quickly. Other times they are sold for parts.
But too often, consumer lawyers and safety advocates say, they are sold to low-income consumers who can afford to spend only a few hundred dollars on a car, and need one badly enough that they will take a risk.But too often, consumer lawyers and safety advocates say, they are sold to low-income consumers who can afford to spend only a few hundred dollars on a car, and need one badly enough that they will take a risk.
Unlike new cars, used cars have no federal requirement that sellers disclose safety recalls or fix dangerous defects, although some state and local regulations offer consumers some protections.Unlike new cars, used cars have no federal requirement that sellers disclose safety recalls or fix dangerous defects, although some state and local regulations offer consumers some protections.
But enforcing those protections can be tricky, and sometimes happens only after someone has been harmed, requiring lawsuits for wrongful death or negligence.But enforcing those protections can be tricky, and sometimes happens only after someone has been harmed, requiring lawsuits for wrongful death or negligence.
That is why safety advocates like Rosemary Shahan, the president of the nonprofit Consumers for Auto Reliability and Safety, have been pushing for laws that specifically ban the sale of recalled vehicles in which repairs have not been made.That is why safety advocates like Rosemary Shahan, the president of the nonprofit Consumers for Auto Reliability and Safety, have been pushing for laws that specifically ban the sale of recalled vehicles in which repairs have not been made.
“It’s illegal for a dealer to knowingly or negligently sell an unsafe car,” Ms. Shahan said. “It’s a question of, how many layers of enforcement can you add?”“It’s illegal for a dealer to knowingly or negligently sell an unsafe car,” Ms. Shahan said. “It’s a question of, how many layers of enforcement can you add?”
The National Independent Automobile Dealers Association, a trade group whose members include used-car dealers, advises companies to fix recalled vehicles when possible and to disclose defects, according to Shaun Petersen, the senior vice president for legal and government affairs.The National Independent Automobile Dealers Association, a trade group whose members include used-car dealers, advises companies to fix recalled vehicles when possible and to disclose defects, according to Shaun Petersen, the senior vice president for legal and government affairs.
The New York City Department of Finance, along with many other sellers of used vehicles, says that it is up to consumers to ensure that what they are buying is safe.The New York City Department of Finance, along with many other sellers of used vehicles, says that it is up to consumers to ensure that what they are buying is safe.
A spokeswoman for the department, said that protecting consumers was a priority.A spokeswoman for the department, said that protecting consumers was a priority.
“State law and individual judicial orders require that the city auction off incurred property, whether it’s a car, a lawn mower, or a piece of jewelry,” Sonia Alleyne, the spokeswoman, said. “This requirement makes no exemption for inoperable or broken equipment, including recalled cars.”“State law and individual judicial orders require that the city auction off incurred property, whether it’s a car, a lawn mower, or a piece of jewelry,” Sonia Alleyne, the spokeswoman, said. “This requirement makes no exemption for inoperable or broken equipment, including recalled cars.”
Safety experts say that more can be done to protect consumers, like disclosing recalls and fixing defects before cars are sold.Safety experts say that more can be done to protect consumers, like disclosing recalls and fixing defects before cars are sold.
The online database of recalls is not perfect — you can search for only one car at a time, and users can get temporarily logged off the system after more than a handful of searches — but safety advocates say that sellers of recalled cars have no good excuse not to use it.The online database of recalls is not perfect — you can search for only one car at a time, and users can get temporarily logged off the system after more than a handful of searches — but safety advocates say that sellers of recalled cars have no good excuse not to use it.
Dealers are required to repair recalled vehicles free, even after a car has been sold multiple times. That applies to drivers who own, say, a 2001 Honda Civic — the same model car that was involved in the death of 50-year-old Delia Robles when she collided with a pickup truck last month.Dealers are required to repair recalled vehicles free, even after a car has been sold multiple times. That applies to drivers who own, say, a 2001 Honda Civic — the same model car that was involved in the death of 50-year-old Delia Robles when she collided with a pickup truck last month.