For example, a disclosure should not be required if a dealer buys back a car from a customer because the customer did not like the color or the trunk was too small. Disclosure in these types of situations serves no useful purpose and may detract from needed disclosures which are made when there is an actual problem with the vehicle. This is an issue which could have a significant adverse impact on both consumers and dealers. NADA will not attempt to speak for manufacturers and state at what exact point certain disclosure requirements would have a chilling effect on the manufacturer's decision to repurchase vehicles. This result would be detrimental to consumers and dealers.
Consumers are the dealers customers.
Any decision made by the manufacturer to help resolve a problem a customer is having with a vehicle benefits both the consumer and the dealer. The types of disclosures given by dealers to consumers concerning these repurchased vehicles vary depending on specific state law requirements. Many dealers make disclosures to customers by passing on the disclosures the dealer received from the manufacturer at an auction. NADA believes that whatever the disclosure format is, there must be a clear criteria as to when disclosure or title branding is required. If some form of title branding is considered, it is our position that the manufacturer should be required to take the necessary steps to have the title branded.