How an unsafe vehicle traced to Georgia independent dealer serves as warning

Channel 2 Action News published a story on Thursday of a vehicle sold to a retail customer that had been improperly repaired after a collision. The 2015 Toyota 4Runner had been purchased from an independent dealership in 2018 and, after discovering the SUV had not been fitted with replacement side impact airbags after a collision, the owner returned the vehicle to the dealer.

Unfortunately, the story does not end there. The vehicle was subsequently sold red light at auction, meaning the seller disclosed the safety issue, but it was purchased and sold once again without the defect being repaired. Once more, it was returned and sold at auction to another independent dealer, then the trail goes cold.

In the situation this vehicle presents, the title status is at the heart of the issue. Prior to extensive repairs from the collision being performed, the 2015 Toyota 4Runner was sold at auction by Progressive Insurance, indicating it was a total loss.

In a statement to Channel 2, Progressive Insurance said, “Individual states determine how vehicles are titled and laws can drastically differ from state-to-state.  We follow the laws and regulations set forth by the applicable state and are extremely confident we were in compliance with the Texas state law when we titled the vehicle you referenced before it was sold at auction.  Since that vehicle was sold at auction, it has been re-titled and sold several times.”

Subsequently, it was sold across state lines, either before or after being repaired without side airbags. Although it’s not exactly title washing, it could certainly be mistaken for it.

A Case of ‘Dealer Beware’ before ‘Buyer Beware’

In this case, the more than one selling dealer retailed the vehicle before the airbag system was discovered to be deficient. It shows that while tools are easily accessible for dealers to prevent these situations, it still happens that un-roadworthy vehicles are still finding their way onto car lots across the country.

Not only can dealers be found liable for undisclosed issues, but there can be legal consequences for related damage and injury in a collision. That’s not to mention the damage to reputation that occurs from social media and news publicity.

Whether franchised auto dealers or independent vehicle retailers, the onus is on the seller first to ensure the vehicle is ready for sale and any concerns are properly disclosed. In Georgia, vehicle safety inspections are only required before a rebuilt or salvage title is issued, but best practices should see dealers going above and beyond minimum requirements.

Buy Inventory Smart

Manheim and ADESA auctions almost always include vehicle history reports. Dealers should take the time to quickly review the report for anomalies that could pose concerns for safely selling the vehicle. For inventory procured outside of auction, a VHR should be pulled prior to the sale.

Although situations such as the one presented by the 4Runner here are rare, being involved will almost assuredly tarnish the dealer’s reputation.

Inspect Every Vehicle

Regardless how recently the vehicle was inspected or certified by another dealer or auction house, it’s good practice for an independent car dealer to re-certify or re-inspect the vehicle before offering it for sale or even allowing test drives.

The 2015 4Runner would be expected to have an airbag light illuminated, but a diagnostic scan would also identify missing components.

Include Vehicle History Report

For proof that the dealership is providing full disclosure and transparency to the customer, include a VHR to the consumer whether or not they request it. This simple, low-cost action can bring to light any concerns before it becomes a news story or a legal issue for the dealership.

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