Recalled Cars Rented Without Being Repaired

Defective Vehicle Parts

It is not uncommon for Americans to rent or ride in rental cars and assume they are safe, however, according to an investigation from the National Highway Safety Administration (NHTSA) it is common for rental car companies to rent defective rental cars.

An investigation into the rules and regulations of how rental car companies fix and maintain their cars was prompted by the death of two sisters who were killed instantly when they lost control of their rental car after it caught fire and sent them into on-coming traffic. Unbeknownst to them, the PT Cruiser they were driving was under recall notice for risk of under-hood fires.  After a five year lawsuit, Enterprise admitted fault, and the parents of the sisters were awarded a damages-only settlement for $15 million.

The NHTSA said that while “dealers have a legal obligation not to sell a new vehicle after they have been notified of the recall by the manufacturer until the defect has been remedied, NHTSA does not have the legal authority to require consumers, including fleet owners like rental car companies, to have recalled vehicles fixed.”

While no law is in state that requires car rental companies to make repairs on recalled vehicles before renting or selling them to consumers, the Federal Trade Commission Act states that companies “shall not engage in unfair trade practices. And, not repairing a defective vehicle after it has been recalled, before renting it out, is an unfair trade practice, and is a violation of the act.”

NHTSA investigated 10 major rental car companies about their recall practices. 90 days later, they found that:

  • Enterprise fixed 65% of their vehicles, while 35% remained unfixed
  • Budget fixed 53% of their vehicles, while 47% remained unfixed
  • Hertz fixed 34% of their vehicles, while 66% remained unfixed
  • Ford did not comment, claiming the results would negatively impact sales and their relationship with rental car companies.

Senator Charles Schumer of New York announced that he is introducing the Safe Rental Car Act, a law that would hold rental car companies to the same regulations that prevent car dealerships from selling defective cars.