Remedy

What It Means

Under 49 U.S.C. 30120, a manufacturer that issues a recall has three options for curing the defect, and all three must be provided at no cost to the owner: repair the defect, replace the vehicle or equipment with an identical or reasonably equivalent product, or refund the purchase price minus a reasonable allowance for depreciation. In practice, more than 95 percent of recalls are resolved through repair, typically performed by franchised dealers who are reimbursed by the manufacturer. Replacement is most common in equipment recalls (tires, child seats, aftermarket accessories). Full vehicle buybacks are rare but have occurred in extreme cases, such as the 2019 Hyundai and Kia engine-fire recall, where some owners whose vehicles could not be safely repaired received refunds. The remedy must be available to the owner within a reasonable time, generally defined as 60 days from owner notification, though parts shortages can lawfully extend this window. If a manufacturer cannot provide a remedy for an extended period, NHTSA may require the manufacturer to pay for a loaner vehicle or provide a "Do Not Drive" notice. Owners cannot be charged for the remedy regardless of vehicle age, mileage, or ownership history, but for vehicles more than 15 years old (measured from date of sale) manufacturers are not legally obligated to provide the free fix, which is one reason used-car buyers of older vehicles should prioritize recall completion before purchase. The Takata airbag recall introduced novel remedy logistics: because Takata itself went bankrupt in 2017, the remedy inflators have been sourced from competing manufacturers, and the rolling remedy-availability schedule has extended the campaign over a full decade.

Frequently Asked Questions