Private Settlement Case Prompts Proposed 29-Point Inspection Action for Dealers

Date December 22, 2016
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Recently, a case being finalized to settle a dispute for an undisclosed amount is prompting a call for change.

The case centers around a case in which two individual tire blowout situations on a single car that had been maintained by the selling dealership spurred controversy. Though the car dealership was legally liable for the failed tires, it was not technically responsible for the unfortunate circumstances. Currently in most states, the Department of Transportation (DOT) does not review issue dates on tires. This was a major point of consideration in the case of the blown out tires, since the tires in question were actually several years older than the recommended acceptable selling date.

Bottom line for dealers: until the DOT implements more stringent used car inspections as they related to tire issue dates, dealers will continue to be liable for a process over which they have little or no control.

Not only is this a safety issue for consumers but it is a risk management and liability issue for used car dealers.

HBK CPAs & Consultants’ Dealership Industry Group is leading a charge to sanction a mandatory 29-point inspection caveat to each tire sale transaction for car dealerships.

Call HBK today at 317-886-1624 or contact team leader Rex Collins at rcollins@hbkcpa.com directly to learn more about how this matter could impact your dealership.

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