I've talked to attorneys general who have really studied this and they believe it would eliminate personal legal recourse on salvage fraud. Even those who favor a national standard, like Michael Wilson of the Automotive Recyclers Association, say that the bills need a provision that simply removes dangerously damaged cars from the market. Some cars are so mangled that they should never be rebuilt, he says, because they will never be safe. But despite the opposition, the salvage bills are marching on. The House has already passed its salvage bill and the Senate's version stands poised to pass as well.
Critics say it all comes down strong lobby groups and campaign contributions.
Supporting the bills are the nation's largest auto insurer, State Farm, and the National Auto Dealers Association. State Farm, which has kept a low profile on this issue, is out to lower its liability, says Bernard Brown, a consumer lawyer specializing in car-fraud who testified on behalf of the Consumer Federation of America. For the bills' strongest supporters, auto dealers, the bills' benefits are obvious. Looser standards mean dealers have to reveal less about a car's history, which means they can sell damaged cars for more money. Dealers, who attempted to push a similar measure through the 1995-96 session of Congress, are trying to go over the heads of states that have stronger measures, says Jack Gillis of the Consumer Federation of America.