New Law Prohibits Recalled Vehicles From Being Used In Rental Fleets

Congress passed the Raechel and Jacqueline Houck Safe Rental Car Act late last year, but the bill only just became federal law this month. This new legislation does just what the name implies. It is meant to ensure that all rental vehicles are as safe as every other car on the road, by prohibiting recalled vehicles from making it into rental fleets. The bill is named for two sisters killed in a highway crash in a rented Chrysler PT Cruiser in 2004. The car was subject to a recall.

 

 In a 2010 verdict from the subsequent lawsuit, Enterprise Rent-A-Car, was forced to pay $15 million in damages because the Cruiser was never recalled for an issue that could cause the car's steering to fail and the driver to lose control of the steering. 

 

The law does come with a loophole, however, that exempts used car dealerships and rental car fleets of less than 35 vehicles. It also extends the National Highway Traffic Safety Administration's (NHTSA) recall authority, allowing them to cover rental car companies for the first time ever. They can now investigate and punish those organizations who would violate the new law.

 

Rental car giants Enterprise, Hertz, and Avis have agreed to follow the law. The legislation has also garnered support from automakers like General Motors, Honda, and Fiat Chrysler. However, the National Automotive Dealers Association (NADA) has expressed opposition to the bill because "not all safety recalls render a vehicle unsafe to operate." NADA also sates that dealerships don't always have time to keep up their loaner fleets because they are busy tending to customer vehicles.

 

"It's critical that every recalled vehicle, whether new, used, rented, or leased, is repaired as soon as possible," said NHTSA Administrator Mark Rosekind. "Rental agencies operate some of the largest fleets, so this law will go a long way in ensuring the cars and trucks on the road are safe."