Consumers for Auto
Reliability and Safety ®
Foundation

The C.A.R.S. Foundation

 
 
 
 
 
NEWS for Immediate Release: September 28, 2017

Contacts: Rosemary Shahan, CARS Foundation, 530-759-9440
Deirdre Cummings, MASSPIRG Education Fund, 617-747-4319
Jason Levine, Center for Auto Safety, 202-328-7700
 
 
CarMax Survey Finds 27% of Vehicles for Sale with Dangerous Unrepaired Safety Recalls
Percent has more than doubled since 2015
One CarMax "Certified" vehicle had 6 unrepaired safety recall defects
 
       The nation's largest retailer of used cars, CarMax, has more than doubled the percentage of dangerous, defective unrepaired recalled used cars for sale to consumers, according to Used Car Roulette, a new report released today by the Consumers for Auto Reliability and Safety Foundation, MASSPIRG Education Fund, and the Center for Auto Safety.

       The report is based on recent surveys conducted by the Frontier Group of nearly 1,700 vehicles CarMax advertised for sale in Northern and Southern California, Massachusetts, and Connecticut, compared with data about CarMax's sales of unrepaired recalled cars in those states in 2015. The report also found that more than one in four cars for sale on the surveyed lots have unrepaired safety recalls.

       "CarMax is selling huge numbers of unsafe, defective recalled cars that are ticking automotive time bombs. They pose a serious threat to the safety of all American motorists and their families," said Rosemary Shahan, President of the Consumers for Auto Reliability and Safety (CARS) Foundation, a non-profit auto safety organization based in Sacramento, CA.

       "Over the last two years CarMax has expanded across the state. Meanwhile our survey found one in four of their cars for sale is unsafe," said Deirdre Cummings, Consumer Program Director for MASSPIRG Education Fund, a non-profit consumer protection organization in Massachusetts. "No one should have to gamble with their safety or the safety of those who share the roadways."

       "Recalls happen when there is an unreasonable safety risk or the car fails to meet a safety standard. Evidence of these defects is readily available to CarMax and calling an unrepaired recalled car 'safe' is deceptive on its face," said Jason Levine, Executive Director of the Center for Auto Safety, an independent, non-profit consumer advocacy organization based in Washington, DC.
 
 
 
 
 
       The survey of nearly 1,700 vehicles for sale at eight CarMax locations – four in Massachusetts, two in California, and two in Connecticut – found that more than one in four vehicles (27%) had unrepaired safety recalls. Researchers surveyed vehicles for sale at all four CarMax locations in Massachusetts (Danvers, North Attleboro, Norwood, and Westborough), two locations in California (Oxnard and Sacramento), and two in Connecticut (East Haven and Hartford). They found that:
  • More than one in four (27%) vehicles surveyed had unrepaired safety recalls.
  • At each of the 8 CarMax locations surveyed, at least 20% of vehicles CarMax advertised for sale had at least one unrepaired defect subject to a safety recall.
  • At North Attleboro MA, Westborough MA, and East Haven CT, more than 30% of vehicles CarMax offered for sale had at least one unrepaired safety recall defect.
  • On average, the percentage of vehicles with unrepaired safety recalls CarMax offered for sale has more than doubled, jumping from 12% to 27%, compared to survey results from 2015, which covered five of the eight locations newly surveyed.
  • In 2015, for example, 10% of vehicles sold at the Hartford CarMax location had unrepaired safety recalls. In the newly updated survey, 28% of vehicles at the same location had unrepaired safety recalls, an increase of 180%. In North Attleboro the percentage of vehicles with unrepaired safety recalls rose from 17 to 31%.
  • 43 vehicles had unrepaired safety recalls for which no repairs are available, so consumers who purchase them are stuck driving unsafe cars for an indefinite period before they can get the cars repaired.
  • The survey found 86 vehicles that had more than one unrepaired safety recall; 19 vehicles had 3 or more unrepaired safety recalls. One GMC Sierra Light Duty Pickup Truck for sale in Westborough had 6 unrepaired safety recalls.
       "For a customer at CarMax, about one out of four cars they look at will contain an unsafe recalled part," said Gideon Weissman of Frontier Group, report co-author. "Those are bad odds, and far worse than the results of surveys from just two years ago."

       It is dangerous and irresponsible for CarMax or other dealers to assume that car buyers will have time to get unsafe, defective vehicles repaired before disaster strikes. In one tragic case, a California Highway Patrol officer, his wife, their 13-year-old daughter, and his brother-in-law, were all killed by a runaway Toyota Lexus the same day, within hours after a dealer handed the CHP officer the keys. (That was the crash that led to the Toyota sudden acceleration recall, affecting millions of cars.)1

       "It is illegal in Massachusetts for any car dealer to sell a used vehicle to a consumer that is not fit to be driven safely on the roads," said Sebastian Korth, an attorney who specializes in representing Massachusetts consumers in cases against auto dealerships and lenders. Mr. Korth is representing Bonnie Belanger of Mansfield, MA in a case against a different dealership. On June 17, 2016, Ms. Belanger purchased a 2013 Chrysler Town & Country for approximately $19,000 from Fafama Auto Sales in Milford, MA. It was not disclosed to her that the minivan had two unrepaired safety recalls. In December of 2016, the driver's door caught on fire without warning, just as described in the recall notice. Ms. Belanger says about her experience: "If you are buying a car from a licensed car dealer in our state, you shouldn't have to worry they didn't bother to get the free safety recall repairs done first. That's their job, to make sure all the cars they sell are safe to drive before they sell them to a consumer."
 
1 "CHP Releases 911 Tape in Officer's Fiery Crash," San Diego Union-Tribune, September 10, 2009. Posted at:
http://www.sandiegouniontribune.com/sdut-bn10-911call-fatal-crash-2009sep10-htmlstory.html
 
 
 
 
 
 
       The consumer groups are calling on state law enforcement officials to curb CarMax's sales of unsafe recalled cars, and on the Courts to overturn consent orders finalized by the Federal Trade Commission which allow dealers including CarMax to advertise that unsafe vehicles with unrepaired safety recalls are "safe," "repaired for safety," and passed a "rigorous inspection" and are offered for sale as "certified" cars, without getting the free repairs, if they merely disclose that the cars they offer for sale "may" have an "open recall." Consumers for Auto Reliability and Safety, USPIRG, and the Center for Auto Safety are suing the FTC to get the consent orders overturned. The case is pending before the U.S. District Court in Washington, D.C.
 
CarMax advertising and "disclosures" are false, misleading, and deceptive
 
       CarMax claims that they provide disclosure about safety recalls. However, the information CarMax provides verbally and in writing is often false, contradictory, deceptive, or misleading, or presented too late to be an effective form of disclosure.

       CarMax advertises that "We select the best" and that "We renew each car." In Massachusetts, a CarMax sales contract for a Jeep with 3 unrepaired safety recalls included this information in bold type: "ATTENTION PURCHASER: All vehicles are WARRANTED as a matter of state law. They must be fit to be driven safely on the roads..."

       The new report found that sometimes the AutoCheck vehicle history reports provided by CarMax to prospective car buyers falsely indicate that there is NO safety recall, when according to the National Highway Traffic Safety Administration, based on data provided by the manufacturer that issued the safety recall(s), there are in fact multiple unrepaired safety recalls.

       CarMax sometimes does not present the "disclosure" form to car buyers until AFTER they have already signed a purchase contract. That is what happened to safety advocate Sean Kane, who purchased a Jeep from CarMax in North Attleboro, MA, in 2015. He shopped for the car with his 15-year-old son, and told sales personnel that it was very important to have a safe vehicle for his son to drive. CarMax did not present him with the recall "disclosure" form until AFTER he had already signed the purchase contract.

       The "disclosure" form itself was false and misleading, indicating that according to NHTSA there was an "open recall(s)" but according to AutoCheck there was NO safety recall. In fact, the Jeep CarMax sold him had 3 unrepaired safety recalls – it was prone to catching on fire, had faulty brakes, and was prone to stalling in traffic.
 
CarMax has Safer Options
 
       CarMax is not authorized to perform safety recall repairs. But that is no excuse for selling unsafe cars. The company, which took in over $15 billion in 2016, can easily afford to pay employees to deliver unrepaired recalled cars to dealerships that are authorized to perform the repairs, and incentivize the dealers to perform the repairs promptly. Under federal law, auto manufacturers must provide the repairs to owners, including auto dealers, for free. CarMax could also sell the recalled vehicles at wholesale, instead of retailing them to consumers for top dollar.

Links to key documents:

Used Car Roulette: Full Report, with Appendix that includes details about each recalled vehicle

Used Car Roulette: Executive Summary

Summaries about Bonnie Belanger and Bianka Janvier's car buying experiences

Description of Sean Kane's experience buying an unsafe, recalled Jeep from CarMax

Purchase contract for Jeep Sean Kane purchased from CarMax, including warranty mandated by MA law that the car is "fit to be driven safely on the roads..."

AutoCheck report for Jeep that Sean Kane purchased from CarMax (Jeep had 3 unrepaired safety recalls)

Disclosure form for Jeep that Sean Kane purchased from CarMax (Jeep had 3 unrepaired safety recalls)

Documents re: Legal Case: Consumers for Auto Reliability and Safety, U.S. PIRG, and Center for Auto Safety vs. Federal Trade Commission


###

 
 
 
Federal Court Rules Against CarMax
over Failures to Provide Completed Inspection Reports

 
In a major blow to CarMax, a Federal Ninth Circuit Court ruled that CarMax fails to comply with California's Car Buyers Bill of Rights, by failing to provide completed inspection reports describing the condition of components the company inspects. CarMax sells all of its vehicles as "certified" cars that have supposedly passed a "rigorous 125+ point inspection." But the auto retailing giant neglects to name which parts passed or failed their tests.

The three-judge panel's decision was unanimous. The consumer who won the case, Travis Gonzales, bought a 2007 Infiniti G35 from CarMax in Costa Mesa, California. The car had badly worn brake pads, malfunctioning windows, a defective transmission and warning lights that lit up intermittently on the dashboard. CarMax claimed the car had passed its inspection program. The dealership argued that putting a generic list of components that were supposedly checked, and putting it in the glove box, was enough "disclosure."

The buyer's lawyer, Hallen Rosner of the law firm Rosner, Barry & Babbitt, successfully argued that CarMax's business practices are "a farce" that cheats customers.
 
 
FTC Chairwoman Edith Ramirez Responds to
Alarms Raised by Auto Safety Champion
in Congress
 
 
Edith Ramirez, Chairwoman of the Federal Trade Commission
In response to alarms raised by U.S Representative Jan Schakowksy (D-IL), a leading auto safety champion in Congress, FTC Chairwoman Edith Ramirez wrote that: "I agree with the National Highway Traffic Safety Administration that recalls pose safety risks to consumers." This makes it all the more puzzling why FTC Commissioners Ramirez, Ohlhausen, and McSweeney have not already rejected the FTC staff's proposed agreements, which would allow dealers to advertise that cars are "safe" and "repaired for safety" and passed a "rigorous inspection" without getting the lethal safety recall defects repaired.

Read more: Letter from FTC Chairwoman Edith Ramirez to Rep. Schakowsky

Also: Letter from Rep. Schakowsky to FTC Chairwoman Edith Ramirez
 


Federal Judge:
I warned my children never to buy a car from CarMax.
 
During a hearing before the U.S. Federal District Court in Pasadena, California, Federal Judge Wardlaw tells CarMax's attorney, "I have to tell you, having read what CarMax does, I have told both my children, don't you buy a 'certified' car from CarMax."

 


Leading Auto Safety Champions in Congress
Slam Federal Trade Commission
over proposal to allow dealers to advertise unsafe, unrepaired
recalled cars as "safe" and "repaired for safety"
Rep. Jan Schakowsky (D-IL) stands up for protecting used car buyers, their families, and others who share the roads.
     U.S. Rep. Schakowsky (D-IL) a leading champion for auto safety in the U.S. House of Representatives, joined CARS, other consumer groups, and leading Senate safety champions in urging the Federal Trade Commission to reverse course over the agency's controversial proposal to allow dealers to advertise unsafe recalled cars as "safe" and "repaired for safety" and having passed a " rigorous inspection" -- without repairing the safety defects that led to a federal safety recall.

     In her letter, Rep. Schakowsky writes:

          "I am writing to express my deep concern with regard to the consent orders with General Motors Company (GM), Jim Koons Management, and Lithia Motors, Inc. proposed by the Federal Trade Commission (FTC)... While the FTC does not have the authority to prohibit the sale of used cars with unrepaired defects, it can and should prevent the misleading advertising of those cars.

          When auto dealers imply cars are safe even though the cars have unrepaired safety defects subject to a recall, those are precisely the unfair and deceptive practices the FTC has the power to stop. However, the proposed consent orders stop short of banning deceptive language...the weak remedies in these proposed consent orders would likely affect other attempts to curb the sale or advertising of vehicles under recall...the FTC should stop auto dealers from deceiving their customers.

          I call on the FTC to revise or reject these proposed orders to truly look out for consumer safety."


Read more: US Rep. Schakowsky letter to Federal Trade Commission
 


 
 
 
For Immediate Release
July 14, 2016
 
 
BLUMENTHAL, SCHUMER, MARKEY, NELSON, DURBIN: FTC SETTLEMENTS ALLOWING USED CAR DEALERS TO ADVERTISE CARS WITH UNREPAIRED RECALLS AS ‘SAFE’ ARE ANTI-CONSUMER & ANTI-SAFETY
 
Recent proposed settlements between the FTC and used car dealers allow dealers to continue advertising used cars as certified and “safe” even if those vehicles have unrepaired safety recalls

Senators today called on FTC and NHTSA to redraft the proposed settlements to ensure consumers have the information they need to stay safe


[WASHINGTON, DC] – U.S. Senators Richard Blumenthal (D-CT), Chuck Schumer (D-NY), Edward J. Markey (D-MA), Bill Nelson (D-FL), and Dick Durbin (D-IL) today called on the Federal Trade Commission (FTC) and National Highway Traffic Safety Administration (NHTSA) to ensure used car dealers cannot advertise a car as ‘safe’ if it has an unrepaired safety recall. Recent proposed settlements between the FTC and used car dealers allow dealers to continue advertising used cars as certified and “safe” even if those vehicles have unrepaired safety recalls. The Senators today called on the FTC and NHTSA to redraft the proposed settlements to ensure consumers have the critical safety information they need when buying a car.

“Congress has long debated whether dealers should be allowed to sell used cars subject to open safety recalls,” the Senators wrote. “We firmly believe that the law should prohibit such sales, as it currently does for new cars with open safety recalls. These proposed settlements wade into this contentious public policy debate, and we believe they would establish an anti-consumer, anti-safety precedent with far-reaching policy implications. Accordingly, we urge you to work together, and in good faith, to leverage your respective agency’s expertise and redraft the proposed settlements so they ensure that consumers receive meaningful information regarding the safety of their potential used vehicle purchases and that public safety is not compromised.

The text of today’s letter is available here and below:

Dear Administrator Rosekind and Chairwoman Ramirez:

       We write with serious safety concerns regarding the Federal Trade Commission’s (FTC) recent proposed settlements with General Motors Company, Jim Koons Management, and Lithia Motors Inc, regarding their failure to adequately disclose unrepaired safety recalls when advertising their used car inspection programs. The proposed settlements would allow dealers to continue to advertise used cars as “safe,” “repaired for safety issues,” and having been rigorously and extensively inspected, including that they are certified—a term that connotes safety—even if those vehicles have unrepaired safety recalls. As such, in their current form, these proposed settlements would fail to address the wrongdoing at hand.

       We understand that, at our behest, your two agencies have discussed these proposed settlements. Nevertheless, we remain concerned that this important public safety and public policy matter has not received the heightened scrutiny it deserves. Congress has long debated whether dealers should be allowed to sell used cars subject to open safety recalls. We firmly believe that the law should prohibit such sales, as it currently does for new cars with open safety recalls. These proposed settlements wade into this contentious public policy debate, and we believe they would establish an anti-consumer, anti-safety precedent with far-reaching policy implications. Accordingly, we urge you to work together, and in good faith, to leverage your respective agency’s expertise and redraft the proposed settlements so they ensure that consumers receive meaningful information regarding the safety of their potential used vehicle purchases and that public safety is not compromised.

       The National Highway Traffic Safety Administration (NHTSA) has publicly stated time and time again that all recalls are safety recalls that need to be fixed. In 2011, a spokeswoman for NHTSA said, “All safety recalls resulting from defects present an unreasonable risk to safety and we believe it is inappropriate to suggest that some defects are not risky enough to require repair.”[1] In a 2013 hearing, former Administrator David Strickland testified, “All NHTSA safety recalls address an unreasonable risk to safety and should not be ignored.”[2] In addition, NHTSA’s current FAQ on vehicle recalls explicitly states, “A recall is issued when a manufacturer or NHTSA determines that a vehicle, equipment, car seat, or tire creates an unreasonable safety risk or fails to meet minimum safety standards.”[3] There is no question that any vehicle with an outstanding recall is an unsafe vehicle.

       In contrast to NHTSA’s longstanding position, the FTC’s proposed settlements would allow dealers to continue committing the same wrongdoing that was the impetus for the Commission’s actions. Car dealers would still be able to represent that a pre-owned vehicle is “safe,” has been “repaired for safety issues,” and has passed a “rigorous safety inspection” or to label a pre-owned car as being certified even when it is being sold with an unrepaired safety recall. A certified used vehicle with an unrepaired safety recall is inherently misleading. Perhaps more alarming, the proposed settlements would only require dealers to make a blanket statement that their rigorously inspected and certified used vehicles “may be subject to unrepaired recalls.” Consequently, this “disclosure” arguably amounts to nothing more than a legal disclaimer that could absolve dealers from their responsibilities and would likely do little, if anything, to meaningfully convey to consumers the existence of an open recall and dissuade them from purchasing such vehicles due to their safety risks.

       The sale of any car with an unrepaired safety recall is a threat to public safety. We support the concerns raised in the comments recently filed by a number of consumer groups that no dealer should be able to advertise that a car is certified or any similar terminology connoting safety, if the car is subject to an outstanding recall.[4] Please report back by August 10, 2016 on how you intend to cooperate and work together to amend the proposed settlements and ensure that car dealers cannot mislead and deceive consumers about the safety of their prospective purchases.

                     Sincerely,
 
###
 
________________________________________
________________________________________
________________________________________

[1] Christopher Jenson, Faced With Recalls, Rental Companies Sometimes Decide to Wait, N.Y. Times Wheels, Apr. 19, 2011, http://wheels.blogs.nytimes.com/2011/04/19/faced-with-recalls-rental-companies-sometimes-decide-to-wait/.

[2] Hearing on S. 921, the “Raechel and Jacqueline Houck Safe Rental Car Act of 2013” Before the Subcomm. on Consumer Protection of the S. Comm. Commerce, Science, and Transp., 113th Cong. (2013) (statement of David Strickland, Adm’r, Nat’l Highway Traffic Safety Admin., available at https://www.commerce.senate.gov/public/_cache/files/492dcbd0-de37-4ea6-9810-8b72d07bb4c0/F2BA003C793F45BA47EB84D6116C92BD.strickland.pdf.

[3] Nat’l Highway Traffic Safety Admin., Vehicle Recalls: Frequently Asked Questions, Safercar.gov, https://vinrcl.safercar.gov/vin/faq.jsp (last visited June 10, 2016).

[4] Letter from Consumer Groups to Federal Trade Commission (Feb. 29, 2016), available at https://www.ftc.gov/system/files/documents/public_comments/2016/02/00011-100830.pdf.

 
The fatal flaw in the FTC's proposed
consent agreement with General Motors
 

The FTC's proposed consent agreement states that General Motors:

"shall not, in any manner, expressly or by implication:

A. Represent that used motor vehicles that
[GM] advertises are safe, have been repaired for safety issues, or have been
subject to a rigorous inspection, unless:

1. The used motor vehicles are not subject to any open recalls relating to
safety, and the representation is otherwise not misleading, OR

2. [GM] discloses, clearly and conspicuously, and in close proximity to
such representation, any qualifying information related to open recalls,
including but not limited to: i.the fact that used motor vehicles that it advertises may be subject to recalls for safety issues that have not been repaired...


Read more: FTC's proposed consent agreement -- see page 4
 


NEWS FLASH: CarMax Caught on Camera Selling Unsafe Cars - AGAIN
"Used cars with open safety recalls for sale"
WCBV -TV, Boston
By Kathy Curran
December 14, 2015
 
"Risk of engine failure, brake failure and even fire -- all potential problems with a Jeep Grand Cherokee put on display on Boston Common by two consumer protection groups.

5 Investigates went undercover, partnering with the Massachusetts Public Interest Research Group and research analyst Sean Kane of The Safety Institute. We hit the CarMax lot in search of used cars for sale with unaddressed safety recalls and also searched the dealer's inventory online.

CarMax Caught on Camera Selling Unsafe Cars - AGAIN 
We found car after car with serious safety problems and 5 Investigates' cameras watched as Kane bought that 2012 Jeep Grand Cherokee Laredo at the CarMax dealership in North Attleboro.

The car looks great and according to CarMax it passed the dealer's comprehensive quality inspection. So you would think it's safe to drive. Well, think again.

5 Investigates discovered the Jeep has some serious safety issues, so serious that the National Highway Transportation Safety Administration's website shows it has three safety recalls that have not been fixed.

'The bottom line is I've got a $29,000 vehicle that has a potential for a brake failure, the potential for the engine to shut off intermittently and the potential to catch fire,' Kane said."

Watch video: "Used cars with open safety recalls for sale" WCBV -TV, Boston, 12/14/15
 


Deirdre Cummings (MASSPIRG Education Fund) and Sean Kane (Safety Institute) release report with the CARS Foundation, exposing CarMax's sales of dangerous unrepaired recalled vehicles in Massachusetts
Photo courtesy of Caley Mcguane
 
 
 
 

Consumers for Auto Reliability and Safety Foundation
 
 
NEWS for immediate release: December 14, 2015
Contact: Deirdre Cummings, MASSPIRG Education Fund - 617-747-4319
Rosemary Shahan, CARS Foundation – 530-759-9440

Consumer Groups: CarMax Endangers Lives in Massachusetts
Selling Unsafe, Unrepaired Recalled Cars

 
       (Boston, MA) CarMax, the nation's largest retailer of used cars, is endangering lives in Massachusetts by selling recalled vehicles with potentially lethal safety defects. According to a report released today by the MASSPIRG Education Fund and the Consumers for Auto Reliability and Safety Foundation, research conducted on October 28, 2015, found that over 17 percent of cars offered for sale at the CarMax North Attleboro dealership – 42 out of 243 – were subject to a federal safety recall that had not been repaired, despite the fact that repairs for many of these safety defects were readily available – at no cost to CarMax. While some of the recalls may involve delays due to parts shortages or temporary non-availability of a remedy, CarMax could have simply waited until the repair was provided by the manufacturer before offering the cars for sale.

       The vehicles were recalled due to defects including stalling in traffic; catching on fire; seat belts that may fail in a crash; Takata air bag inflators that rupture and propel metal fragments, blinding drivers or passengers or causing them to bleed to death; sticking accelerator pedals, and faulty steering that can cause a crash.

       Five vehicles were subject to two or more recalls each, and 15 cars had unrepaired safety recalls where the manufacturer advised that a remedy, or repair, was “not yet available.” Consequently, purchasers who attempted to get those safety defects fixed after purchase would be unable to get them repaired until fixes were made available.

       “CarMax is playing recalled car roulette with the public's safety,” said Rosemary Shahan, President of the CARS Foundation.

       "Used car sales should not need a safety 'Buyer Beware' sign – the cars should be free of safety recalls before they leave the lot. I introduced the Used Car Safety Recall Repair Act to require car dealers to repair any outstanding safety recalls in used cars prior to selling or leasing them. It’s time we end the confusion of car buyers who believe they are buying a product that is safe but could end up threatening the lives of families on our Massachusetts roadways," said Senator Edward J. Markey (D-MA).



 
 
 
 
       Senator Markey is championing legislation in Congress, along with Sen. Blumenthal (D-CT), to make it a violation of federal law, enforceable by the National Highway Traffic Safety Administration, for dealers to sell unrepaired recalled used cars without getting the free repairs done first.

       “Consumers rightly have the expectation that when shopping at any car dealership they will be sold a safe car, and at the very least, they certainly would not expect that any car for sale would still be under a safety recall,” said Deirdre Cummings, Consumer Program Director with the MASSPIRG Education Fund.

       Sean Kane, founder and president of the board of directors of The Safety Institute and a nationally known safety advocate, described his experience buying a 2012 Jeep from the CarMax store in North Attleboro on November 30. The Jeep was on display at the news conference. Kane told the salesperson that the Jeep was for his wife and his 15 year-old son Jake, who accompanied him to the dealership. The salesperson repeatedly reassured him that it was safe and that it had cleared the CarMax inspection. It wasn't until after Sean specifically requested information about recalls that they were identified – and even then the safety hazards associated with the recalls were said to be insignificant.

       After Sean signed a contract purchasing the Jeep and wrote a check, and the dealership had verified that the check would clear, he was presented with a document1 to sign that said CarMax had disclosed that the NHTSA had reported that the Jeep had unrepaired safety recalls, but that AutoCheck, a vehicle history service that provides information on used cars, reported “no open recalls.”2

       The Jeep purchased by Kane had three unrepaired recalls, for the following defects: 1) A brake problem that “could cause a crash without warning,” 2) intermittent stalling in traffic, which “could cause a crash without warning,” and 3) faulty wiring in the visor that may short out and cause a fire.

       A vehicle history report for the Jeep provided by CarMax, from AutoCheck (owned by Experian), indicated that “your vehicle checks out” and the Jeep received green checkmarks for a long list of potential problems. There was no indication on the report that the Jeep had any safety recalls pending.

       As concerning is that CarMax advertises that all the vehicles it offers for sale must pass a rigorous “125 point inspection” in order to qualify to be sold as “CarMax Quality Certified” vehicles. It also advertises a long list of specific components that are checked including brakes, engine and transmission, electrical, and steering, to name a few. Such ads are inherently deceptive when the vehicle has a safety defect that led to a safety recall, and is not repaired.
 
 

________________________
1 The disclosure document is posted at: http://carconsumers.org/img/CarMax_MA_2012-Jeep_disclosure_form.jpg
2 A more detailed account about Sean Kane's car buying experience at the CarMax store in North Attleboro is posted at:
http://carconsumers.org/pdf/CarMax_MA_Sean_Kane-Jeep-Purchase_Summary.pdf



 
 
 
       “I specifically told CarMax I wanted to buy a safe vehicle for my family, and they sold me a vehicle with three potentially lethal safety defects – sudden engine shutdown, faulty brakes and a fire hazard,” said Sean Kane.

       The report found that car buyers shopping at CarMax's dealership in North Attleboro faced an even higher risk of being sold unsafe, unrepaired recalled cars with potentially lethal safety defects than used car buyers in CarMax stores in California or Connecticut, based on research in those states.

       Research earlier this year by the CARS Foundation and the CALPIRG Education Fund in California found that 10 percent of vehicles at the CarMax in Oxnard and 9 percent of the vehicles at CarMax's South Sacramento dealership had unrepaired safety recalls.3 Research conducted in Connecticut found that 16 percent of CarMax cars offered for sale in East Haven and 10 percent of CarMax cars in Hartford had unrepaired safety recalls.4

       The groups called on Attorney General Maura Healey to investigate CarMax's sales of unrepaired recalled vehicles in Massachusetts and take appropriate action to protect the public.

       The findings are particularly troubling given CarMax’s plans to open more stores in Massachusetts, including in Norwood, Danvers and Westboro.

       Consumer complaints to the National Highway Traffic Safety Administration regarding the defects in the Jeep and other models with the same defects are posted here:

http://carconsumers.org/pdf/FiatChrysler_Recall_brakes_consumer_complaints_to-NHTSA.xlsx
http://carconsumers.org/pdf/FiatChrysler_Recall_stalling_consumer_complaints_to-NHTSA.xlsx
http://carconsumers.org/pdf/FiatChrysler_Recall_visor_fire_consumer_complaints_to-NHTSA.xlsx

The Consumers for Auto Reliability and Safety (CARS) Foundation, founded in 1982, is dedicated to preventing motor vehicle-related fatalities, injuries, and economic losses through education, outreach, aid to victims, and related activities.


The MASSPIRG Education Fund is an independent, non-partisan group that works for consumers and the public interest. Through research, public education and outreach, we serve as counterweights to the influence of powerful special interests that threaten our health, safety, or well-being.

 
 

________________________
3 “CarMax’s Sales Practices Endanger Lives in California,” Consumers for Auto Reliability Safety (CARS) Foundation and CALPIRG Education Fund, 2015. Accessed at http://www.carsfoundation.org/pdf/CarMax-Sales-Practices-Endanger-Lives.pdf.
4 “CarMax: Endangering Lives in Connecticut,” Consumers for Auto Reliability Safety (CARS) Foundation and CONNPIRG Education Fund, 2015. Accessed at http://carconsumers.org/pdf/CarMax-CT-report_New-Haven_Hartford-6.pdf.



 
 
CarMax Endangers Lives in Massachusetts
Report Issued Dec. 14, 2015
Documents CarMax's Sales of Unsafe Recalled Cars
 
Read the full report: CarMax Endangers Lives in Massachusetts

Additional documentation:

Purchase Contract for unrepaired recalled Jeep Sean Kane bought from CarMax in North Attleboro, MA

AutoCheck report for unrepaired recalled Jeep Sean Kane bought from CarMax in North Attleboro, MA

CarMax sold this unsafe recalled Jeep to Sean Kane, who told them he was shopping for a safe car for his wife and 15-year-old son to drive
Photo courtesy of Caley Mcguane
 


 
 
CarMax Selling “Certified” Recalled Cars with Lethal Safety Defects—Blumenthal, Consumer Advocates Call on FTC to Crack Down on Deceptive, Potentially Deadly Sales Practices
 
Monday, August 24, 2015

CARS Foundation Investigation Found CarMax Dealerships in Hartford and East Haven  Connecticut offered for sale 74 “Certified” Cars With Potentially Lethal Safety Defects Subject to Recall

Blumenthal Champions Federal Legislation to give the National Highway Traffic Safety Administration Authority to Bar Car  Dealers' Sale of Unrepaired Recalled Used Cars

(Hartford, CT) – Today, U.S. Senator Richard Blumenthal (D-Conn.) and consumer advocates urged the Federal Trade Commission (FTC) to take immediate action to halt CarMax’s dangerously deceptive marketing of used cars with lethal safety defects. U.S. Senator Blumenthal also called for enactment of federal legislation to give NHTSA authority to police car dealers' sales of recalled used cars.

A bombshell investigation by Consumers for Auto Reliability and Safety Foundation and M & R Strategic Services found 74 “certified” recalled used cars with potentially-lethal safety defects offered for sale at CarMax dealerships in Hartford and East Haven during two 24-hour periods in July and August. The safety defects included airbags that may not inflate when needed in a crash, short circuits that can cause electrical fires, child safety seat anchors that may fail to latch, faulty fuel pumps that can cause engines to cut off in traffic, and other serious safety defects. CarMax advertises that each of its cars must pass a rigorous “125+ point inspection" before it can be sold as "CarMax Quality Certified," yet the CARS Foundation/M &R report found that CarMax had not taken even basic measures to get known safety recalls repaired.

“CarMax's practices endanger the lives of their customers, their customers’ families, and everyone who shares the roads,” Blumenthal said. “CarMax advertises that all its vehicles must pass a rigorous ‘125 point inspection,’ but no inspection that routinely ignores outstanding safety recalls can be called ‘rigorous.’ Regardless of whether they are buying a new or used car, all consumers deserve to know they are buying a safe car.”

CarMax should not be allowed to make Connecticut, or any other state, a dumping ground for unsafe recalled vehicles with potentially lethal safety defects,” said Evan Preston, ConnPIRG Executive Director.

“CarMax is playing recalled roulette with its customers’ lives,” said Rosemary Shahan, President of the Consumers for Auto Reliability and Safety Foundation. “That is also putting their families, other passengers, and everyone who shares the roads at risk.”

Blumenthal has introduced the Used Car Safety Recall Repair Act, which would make it a violation of federal law, enforceable by NHTSA, for car dealers to fail to get any outstanding safety recalls repaired before selling or leasing a used car.

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CarMax: Endangering Lives in Connecticut
CARS Foundation, ConnPIRG, and M&R Report
Read the report
 
 
"CarMax sells used cars with unresolved recalls"
NBC Connecticut
August 24, 2015
By Max Reiss
 
 
Watch news report




 
 
 
 
IMMEDIATE RELEASE
June 10th, 2015

CONTACT:
Rosemary Shahan
Consumer for Auto Reliability and Safety Foundation
530-759-9440
rs@carconsumers.org

Jason Pfeifle
CALPIRG Education Fund
510-844-6809
jpfeifle@calpirg.org

CARMAX IS ENDANGERING LIVES IN CALIFORNIA

CALPIRG Education Fund, CARS Foundation release report on CarMax’s sales of unrepaired recalled cars and urge crackdown by CA Attorney General Kamala Harris and Department of Motor Vehicles
 
SACRAMENTO / OXNARD - CALPIRG Education Fund and the Consumers for Auto Reliability and Safety (CARS) Foundation today released the results of research into CarMax’s sales of unsafe, defective recalled cars in California, and called upon California Attorney General Kamala Harris and the California Department of Motor Vehicles to protect the public from CarMax’s sales of unrepaired, defective vehicles that are subject to federal safety recalls.

“CarMax is playing recalled car roulette with its customers' lives, and endangering the safety of others who share the roads,” said Rosemary Shahan, President of the CARS Foundation, a Sacramento-based non-profit educational and auto safety research organization.

CALPIRG researchers found that during a 48-hour period, 10% of the vehicles CarMax offered for sale in Oxnard, CA, and 9% of the vehicles CarMax offered for sale in South Sacramento, CA, were subject to federal safety recalls due to unrepaired defects including:
  • Catching on fire
  • Faulty anti-lock brakes
  • Hoods that fly up while the car is being driven
  • Seat belts that may not provide adequate protection in a crash
  • Air bags that may not inflate when needed in a crash
  • Cruise control that may not disengage when the driver brakes
  • Rolling away while unattended
 
 
 
 
“We all have a stake in seeing that CarMax ensures that the cars it sells are safe to drive, and gets all unrepaired safety recalls fixed prior to selling cars to consumers,” said Jason Pfeifle, Acting Program Director of CALPIRG Education Fund, a consumer group that works to advance the public interest through research, policy analysis, and citizen outreach.

When a dealer sells a used car that is unsafe, the buyers may not have time to get it repaired before tragedy strikes. This is particularly true when there are not enough repair parts or skilled automotive technicians to meet demand, as millions of vehicles are being recalled because of problems such as exploding Takata air bags that blind or kill drivers and front-seat passengers. It may take months before those defective air bags can be replaced.

The groups pointed out that in the tragic crash that led to the recall of millions of defective Toyotas, CHP officer Mark Saylor, his wife Cleofe Lastrella, their 13-year-old daughter Mahala, and his brother-in-law Chris Lastrella were all killed the same day, within hours of when a dealer handed Mr. Saylor the keys to an unsafe Lexus. The defective car sped out of control over 120 miles an hour on the freeway in San Diego, and narrowly missed colliding with other vehicles before it crashed and caught on fire.

“One of the best ways to ensure cars with open safety recall notices get fixed is to require all car dealerships to get them repaired before they leave the lot,” said Jason Pfeifle. For CarMax, that would involve taking the car to a franchised new car dealership for free repairs.

However, instead of fixing safety recalls, CarMax is actually misleading consumers with advertisements that tout their 125+ point inspection and the safety of the cars they sell. The problem is that their “inspection” omits getting known safety defects that have triggered a federal safety recall repaired.

"When lives are at stake, there's no excuse for CarMax to neglect to get safety recall repairs done -- for free -- before they hand over the keys to consumers," said Jim Beno, Directing Business representative District 190 Machinists Union.

The groups released letters calling upon California Attorney General Kamala Harris and the Department of Motor Vehicles to investigate and crack down on CarMax over its sales practices, under existing consumer protection laws. Depending upon the results of any investigation, possible sanctions could include fines, restitution for victims, and / or suspension or revocation of CarMax's license to do business in California.

“CarMax is selling ticking time-bomb cars in California,” said Shahan. “That has to stop.”

# # #

The Consumers for Auto Reliability and Safety (CARS) Foundation is dedicated to preventing motor vehicle-related fatalities, injuries, and economic losses through education, outreach, aid to victims, and related activities.

CALPIRG Education Fund conducts research and public education on behalf of consumers and the public interest. Our research, analysis, reports and outreach serve as counterweights to the influence of powerful special interests that threaten our health, safety or wellbeing.

 
 
Read More:

Letter to California Attorney General Kamala Harris

Letter to California DMV Director Jean Shiomoto  


Exploding Takata air bags: take this safety recall seriously.
 
How risky is the Takata exploding air bag defect? Some commentators are downplaying the risk, and may mislead consumers into thinking they can ignore the safety recall. They point to reports about the number of known fatalities linked to the faulty air bags, which have been pegged at 6, with another 100 people suffering serious injuries.

Stephanie Erdman was blinded in one eye by an exploding Takata air bag that a car dealer failed to repair in time.
However, as the GM ignition switch defect has taught us, the initial numbers can be deceiving. GM acknowledged only 13 fatalities. But we now know that the toll was actually much higher, numbering over 100 lives lost. Plus many more people suffered serious injuries.

In addition, the Takata air bag defect is getting worse. The problem with the air bags is linked to exposure to the elements. Over time, the number of air bags that are prone to exploding with excessive force will inevitably rise. So will the risk to drivers and front-seat passengers.

If you own a car that is among those equipped with Takata air bags, here are some steps you can take to stay as safe as possible:

1. Check your car’s safety recall status by entering the Vehicle Identification Number on the website for the National Highway Traffic Safety Administration, here: vinrcl.safercar.gov/vin

2. Register to receive updates about any changes in your car’s recall status, here: www-odi.nhtsa.dot.gov/subscriptions/index.cfm

3. If your car is being recalled to replace one or both front air bags, contact a local new car dealer and get on the list for repair parts.

4. If the repair parts are not yet available, insist that the manufacturer provide you with a rental car from a rental car company that ensures that its rental cars are not subject to a safety recall, such as Hertz, Enterprise, Avis, Dollar Thrifty, Alamo, and other major rental car companies or smaller companies (except Rent-a-Wreck).

5. Be wary of loaner cars, which dealers have on their lots. Dealers argue that they should be able to foist off unsafe, unrepaired recalled cars onto consumers as loaner cars. Yes, it’s nuts. But hey, they’re car dealers.

6. If a manufacturer refuses to provide you with a safe rental car, while you wait to get your unsafe, defective car repaired, let the CARS Foundation know. We’re going to publicize stories about manufacturers refusing to provide safe alternative transportation, like they have promised members of Congress and the media. Sometimes a bit of sunshine can go a long way toward convincing a company to do the right thing. Where to contact the CARS Foundation: carsfoundation.org/contact.php
 


 
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Avoid buying cars with killer safety defects
Buyer beware: NEVER trust that a dealer will have the safety recall repairs performed before selling you a car that is being recalled. Dealers are so eager to make a buck, fast, they are unwilling to delay sales long enough to get the safety recall repairs done -- for FREE.

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12 used car buying tips that can save you thousands of dollars and help you avoid lemons and cars with killer safety defects

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