Study: CarMax found to have unfixed recalls in 27% of autos
A review of eight CarMax Inc. locations by safety advocates found that more than one in four vehicles reviewed had unrepaired safety recalls, including some with air bag inflators linked to deadly malfunctions.
A total of 461 vehicles contained at least one outstanding safety recall that had not been repaired, 41 of which had recalls for which no repair was available, the review by safety advocates found. The study looked at the recall status of about 1,700 used autos listed for sale at eight CarMax dealerships in three U.S. states.
Of those, 45 vehicles contained air bag inflators made by Takata Corp., the company behind the largest auto recall in history, that were subject to recall but had not yet been repaired.
The defects include fire risks and other hazards that have been linked to deaths and injuries, said Rosemary Shahan, president of Consumers for Auto Reliability and Safety Foundation, one of the groups that did the study. The Center for Auto Safety and the MASSPIRG Education Fund, an advocacy group, also were part of the research.
“Yet they continue to sell these to the public and they market them in a very deceptive way,” Shahan said. “We are demanding that state law enforcement officials crack down on CarMax and other dealers who are engaging in these practices.”
Selling used cars with unrepaired safety recalls, while not prohibited under federal law, is condemned by auto safety and consumer advocates who say it puts unsuspecting drivers at risk. The practice has drawn fire from Democrats in Congress who have tried to ban it. It’s illegal to sell new cars with safety recalls that have not been remedied.
Yet only franchised new-car dealers can complete recall repairs. Independent dealerships such as CarMax cannot.
CarMax said in a statement Thursday that each vehicle listing on its website includes a link to search for open recalls affecting that vehicle. Employees review vehicle recall information with customers and customers sign a form acknowledging they have received NHTSA recall information before signing sales paperwork, according to the company.
“We are dedicated to making sure our customers know about open recalls prior to purchase,” CarMax Chief Operating Officer Cliff Wood said in a statement. “Nothing is more important than being transparent and honest with our customers.”
More than 100 auto dealers operating in New York state settled with New York Attorney General Eric Schneiderman’s office in April after a probe found hundreds of used autos had been sold with unrepaired safety recalls to customers. The dealers agreed to disclose open recalls to future customers and pay a $1,000 fine.
The Federal Trade Commission last year settled with General Motors and two dealers over claims that they sold used vehicles with open recalls while advertising thorough vehicle inspections.