You buy a car from a dealer, drive it home, and a few days later discover it has an active safety recall.
Most buyers wonder: Was that even legal?
The answer depends on whether you bought new or used—and the difference in protection is significant.
Understanding the law helps you know what dealers can do, what they must disclose, and what options you have if they failed to tell you about a recall.
New Cars: Federal Law Prohibits Recall Sales
Federal law clearly prohibits dealerships from selling new vehicles with open safety recalls.
Under 49 U.S.C. § 30112, franchised dealers cannot sell, offer for sale, or deliver any new vehicle with a known safety defect or open recall.
This prohibition applies to:
- Any vehicle that has never been titled or registered
- Dealer demonstrators and loaner vehicles being sold as new
- New vehicles already in dealer inventory when recalls are announced
Dealers must complete all recall repairs before customers can take delivery.
If replacement parts aren’t available, dealers can provide loaner vehicles at no cost, but they cannot complete the sale until repairs are done.
Violations carry serious penalties. Dealers face fines up to $21,000 per violation, which creates strong incentive to comply.
Used Cars: The Legal Gap
California law provides far less protection for used car buyers.
Dealers can legally sell used cars with active, unrepaired safety recalls—and in most cases, they don’t have to tell you.
This gap exists because recall obligations fall on manufacturers, not subsequent sellers.
Once a vehicle leaves the original owner, tracking becomes difficult and disclosure requirements get murky.
Current California law regarding used car recalls:
- Dealers must disclose recalls only if they have “actual knowledge” of them
- Dealers can claim they didn’t know, avoiding disclosure obligations
- No requirement exists to check recall status before selling used vehicles
- Private party sellers have no recall disclosure requirements
This creates situations where consumers unknowingly buy vehicles with serious safety defects.
Airbags that won’t deploy, steering components that might fail, or brake systems with known problems can all be sold without disclosure.
The “Actual Knowledge” Problem
The “actual knowledge” standard creates a troubling incentive: dealers benefit from not checking recall status.
If a dealer never checks NHTSA’s recall database, they can honestly claim ignorance and avoid disclosure obligations.
Some dealers deliberately avoid recall checks to maintain this defense, though the practice raises serious ethical questions.
Other dealers do check recalls but provide inconsistent information.
A salesperson might mention a recall casually without written documentation or proper explanation of the defect’s severity.
Legislative Attempts to Close the Gap
Various bills have been introduced in the California legislature to expand recall disclosure requirements and prohibit sales of used vehicles with serious safety recalls.
These proposals have faced opposition from dealer associations who argue that broad prohibitions would immobilize too much inventory.
As of 2025, most reform proposals haven’t passed.
Consumer protection remains limited to new vehicles, with no special California law for Takata airbags or other used car recalls despite the deadly nature of some defects.
Federal legislation like the “Used Car Safety Recall Repair Act” has also been proposed to create uniform nationwide protections, but strong dealer lobby opposition has prevented passage.
Why Dealers Sell Recalled Vehicles
Understanding dealer motivations helps explain why these sales persist.
Financial Pressures
Performing recall repairs costs dealers time and reduces inventory turnover.
While manufacturers reimburse parts and labor, the administrative burden and vehicle downtime cut into profits.
Dealers facing monthly sales targets might prioritize immediate sales over recall completion.
Some recalls require extensive repairs taking days or weeks.
Rather than hold inventory, dealers sell vehicles reasoning that customers can get repairs later—a practice that’s legal for used cars, though ethically questionable.
Parts Availability
Many recalls involve parts shortages that delay repairs for months or years.
Dealers with dozens of affected vehicles might face extended waits.
Knowledge Gaps
Smaller independent dealers might lack systems to check recall status systematically.
Without database access or staff training, they genuinely may not know about recalls—though ignorance doesn’t excuse legal liability when recalls meet disclosure thresholds.
How to Check for Recalls Before Buying
Since dealers may not reliably disclose recalls, check recall status yourself before purchasing any vehicle.
NHTSA’s Free VIN Check
Visit nhtsa.gov/recalls and enter the vehicle’s 17-character VIN.
The database immediately shows all open recalls for that specific vehicle, including recall dates, defect descriptions, and repair status.
Check every vehicle you seriously consider purchasing—new or used, dealer or private party.
Manufacturer Recall Portals
Most manufacturers maintain recall check tools on their websites.
These sometimes include additional details beyond NHTSA listings, such as repair part availability and estimated completion timeframes.
Check both NHTSA and manufacturer sources for the most complete picture.
Request Completion Documentation
If recalls exist, ask for documentation proving repairs were completed.
Dealers should provide repair orders showing authorized service departments performed the work.
Without documentation, assume recalls remain open.
Verbal assurances aren’t sufficient—insist on written proof before completing purchase.
Your Rights When Recalls Weren’t Disclosed
If you discover an undisclosed recall shortly after purchase, several legal options may exist depending on dealer conduct and recall severity.
Fraudulent Concealment Claims
If a dealer knew about a recall and deliberately concealed it—or made false statements claiming no recalls existed—you may have fraud claims under California law.
Proving fraudulent concealment requires showing the dealer had actual knowledge and intentionally prevented you from discovering it.
Evidence might include dealer emails misrepresenting recall status, testimony from other buyers given similar misinformation, or internal documents showing recall awareness.
Violation of Disclosure Requirements
When dealers had actual knowledge but didn’t disclose, you might pursue claims under California’s automotive sales regulations requiring disclosure of material facts affecting vehicle condition.
For additional information on when dealers fail to disclose material facts, see our guide on undisclosed material facts.
Warranty Claims
Some recalls qualify as warranty issues, particularly if defects substantially impair the vehicle’s use, value, or safety.
If a dealer sold you a used vehicle with warranty coverage and failed to disclose a recall qualifying as a substantial defect, lemon law protections might apply.
These claims strengthen when recalls involve safety defects that were present at sale and remain unfixed despite warranty obligations.
Rescission and Damages
Successful fraud or violation claims can result in rescission—unwinding the sale and obtaining a full refund.
Alternatively, you might recover damages including repair costs, diminished vehicle value, or compensation for safety risks.
California law provides for attorney fees in many consumer fraud cases, enabling you to pursue claims without upfront legal costs.
Getting Recalls Repaired After Purchase
If you discover an open recall after purchase, getting it repaired should be your priority regardless of any legal claims.
Manufacturer Obligations
Manufacturers must repair recall defects free of charge regardless of whether you’re the original owner.
Recalls follow vehicles, not owners—you’re entitled to free repairs even if you bought the vehicle used.
Contact the manufacturer’s customer service or visit an authorized dealership to schedule repairs.
Provide your VIN and they’ll verify which recalls apply.
Parts Availability Challenges
Some recalls involve parts shortages creating repair delays.
Manufacturers must provide estimated timelines and should offer interim remedies if repairs can’t be completed promptly.
For serious safety recalls, manufacturers might provide loaner vehicles, rental reimbursement, or buyback offers if repairs are significantly delayed.
Don’t accept indefinite waiting periods for critical safety issues. If the dealer can’t fix your car, you have options.
Documentation Importance
Keep all documentation of recall repair completion.
These records prove repairs were performed and protect you if problems recur or when you later sell the vehicle.
Recall completion affects vehicle value.
Documented completion enhances resale value and buyer confidence.
Protecting Yourself as a Car Buyer
Until stronger laws pass, consumers must protect themselves through diligent pre-purchase investigation.
Pre-Purchase Checklist
- Check NHTSA recall status before purchasing any vehicle
- Request written disclosure of all known recalls from dealers
- Insist on recall completion documentation before finalizing purchase
- Include recall status in purchase contracts with specific listings and repair deadlines
For guidance on verifying a vehicle’s condition, see how to check a car’s repair history.
Red Flags to Watch
If a dealer refuses to check recalls, won’t provide written disclosure, or becomes defensive about recall questions, walk away.
These behaviors suggest problematic dealer practices and potential safety issues.
Honest dealers accommodate reasonable buyer requests about safety information.
Dealers avoiding or minimizing recall discussions likely know about problems they’re trying to hide.
Take Action After Discovering Undisclosed Recalls
If you recently purchased a vehicle and discovered an undisclosed recall that should have been disclosed, legal remedies may be available depending on your specific circumstances.
Consumer Action Law Group represents California buyers dealing with undisclosed recalls, fraudulent concealment, and dealer misconduct.
We investigate what dealers knew, when they knew it, and whether their conduct violated California’s consumer protection laws.
We evaluate whether you have grounds for rescission, damages, or other remedies.
Contact us today at (818) 254-8413 for a free consultation.
Don’t let dealers profit from hiding dangerous recall information.
Let us help you hold them accountable.
