There is no consistent industrywide policy on how auto auction companies handle the sale of vehicles that have been recalled but not yet repaired, based on their responses to a recent controversy and legislation introduced in the Senate.
Automotive News contacted auction companies after Enterprise Rent-A-Car and Avis Budget Group Inc. said they would not rent or sell recalled vehicles that have not been repaired.
Manheim, the largest U.S. auction company, requires sellers to announce specific defects at the time of sale, in line with the policy of the National Auto Auction Association.
"This policy does not require sellers to perform recall inspections prior to selling vehicles. However, it does hold sellers responsible for announcing specific defects identified in this policy," Craig Amelung, Manheim's senior director of operational excellence, said of the NAAA policy.
ADESA Auctions, the second-largest auction company, handles recalled vehicles case by case.
A spokesman for Ally Financial, which operates the SmartAuction online wholesale auction channel, said, "Our buyer and seller agreement requires the buyer of any vehicle to repair any and all safety recalls before the vehicle is resold, redelivered or operated."