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Bill > S509


NJ S509

NJ S509
Requires dealership to notify buyers of recalls on used motor vehicles for sale.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill requires a car dealer to provide information to any potential buyer of a used motor vehicle with outstanding recalls. The bill makes it an unlawful practice under P.L.1960, c.39 (C.56:8-1 et seq.) for a dealer to sell a used vehicle without first contacting, or accessing information provided by, the vehicle manufacturer or the National Highway Traffic Safety Administration (NHTSA) to determine if there are any recalls on the used vehicle which have not been corrected or addressed. In the event that a recall is discovered, the dealer would inform the prospective purchaser about the recall, and whether the recall work for that particular vehicle was resolved, if known, prior to finalizing the sale of the vehicle. Additionally, the bill provides that there is an irrebuttable presumption that a dealer has no knowledge of the existence of a prior recall on a used vehicle if that dealer accessed the NHTSA website and, after the dealer input the specific vehicle identification number (VIN), the website indicated that no open recall existed for that particular vehicle. This provision would not: (1) create any legal duty upon a dealer related to the accuracy, errors, or omissions of the NHTSA website; or (2) require a dealer to provide the prospective purchaser with any recall information that may be added to the NHTSA website, after the dealer prints a copy of the recall information and provides it to the prospective purchaser of the used vehicle. The bill defines a motor vehicle "dealer" as a person who is actively engaged in the business of buying, selling or exchanging new or used motor vehicles at retail. For the purposes of the bill, "at retail" does not include wholesale sales, sales between dealers, and sales to owners or operators of motor vehicle junk businesses or motor vehicle junk yards, or any other persons or entities engaged in the business of dismantling, destroying, or recycling motor vehicles.

AI Summary

This bill requires car dealerships to inform potential buyers about any unaddressed recalls on used vehicles before a sale is finalized, making it an unlawful practice under existing consumer protection laws to sell a used car without first checking with the manufacturer or the National Highway Traffic Safety Administration (NHTSA) for outstanding recalls. If a recall is found, the dealer must disclose it to the buyer and state whether the recall work has been completed, if known. The bill also establishes a legal protection for dealers, creating an irrebuttable presumption that they had no knowledge of a recall if they checked the NHTSA website using the vehicle's unique Vehicle Identification Number (VIN) and the site indicated no open recalls, and this protection is not affected by potential errors on the NHTSA website or recalls added after the dealer has provided the buyer with the recall information. A "dealer" is defined as someone actively selling new or used vehicles to individual consumers, excluding wholesale transactions or sales to businesses that dismantle vehicles.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)

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