NAAA to No Longer Recommend Auctions Cease Selling Recalled Units
FREDERICK, Md. — On the advice of its counsel, the National Auto Auction Association has reversed course and said Wednesday that vehicles under manufacturer recalls should not be withheld from dealer-only sales at member auctions.
"Based on the opinion of counsel, it is the position of the National Auto Auction Association that vehicles should not be withheld from sale in dealer-only sales at its member auctions solely because of the existence of open manufacturers' recalls," NAAA indicated in a statement.
"Dealers should be aware of the risks involved in purchasing vehicles in the wholesale market and auctions cannot realistically be expected to monitor the recall status of every vehicle that is offered for sale," officials added.
In late January, after Toyota announced it was suspending sales of eight models after a recall for sticking accelerator pedals, NAAA had recommended that member auctions immediately halt sales of these vehicles until recall issues were resolved.
Then in early March, General Motors told its dealers to halt the delivery of certain model years of new and used Chevrolet Cobalts and Pontiac G5s until a steering recall could be completed. In response to this announcement by the automaker, NAAA made another recommendation that member auctions halt sales of these units until the issues were resolved.
Since these recalls, the majority of affected models from Toyota have since been modified at the automaker's suggestion and are running through sales again at auctions.