DETROIT -- In the wake of Hurricane Katrina, the National Automobile Dealers Association is calling on Congress to encourage states to adopt consistent definitions of title branding terms and to maintain an electronic database of damaged vehicles.
NADA Chairman Jack Kain warns that the estimated 570,000 new and used vehicles damaged by Katrina could be sold with "washed" titles to unsuspecting dealers and consumers. Instead, he says, some of those vehicles should be destroyed.
Kain says Congress should offer incentives to states to adopt consistent definitions of major vehicle damage, maintain those brands when vehicles are titled in another state, and make title data available electronically to vendors of vehicle histories.
NADA dropped a proposal for a federal title branding law several years ago, after the U.S. Supreme Court suggested in an unrelated case that the federal government could not tell states how to manage their vehicle titling operations.
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