More than 15 years ago, Congress ordered the government to create a database of junked and stolen cars that would help buyers from getting burned. It still doesn't exist. And so yesterday Public Citizen (which was founded by Ralph Nader), Consumers for Auto Reliability and Safety (CARS) and Consumer Action sued the Justice Department.
Auto dealers are also cheated by so called title-washing, in which junked, flooded or stolen cars are rebuilt with no ways of retracing their histories. But the National Automobile Dealers Association declined to join the lawsuit. Instead, it has supported legislation that would require immediate disclosure by insurers of all vehicles they declare totaled, for any reason.
An estimated 5 million vehicles are totaled each year. A study commissioned by the Department of Justice estimated that the database could save consumers between $4 billion and $11.3 billion each year.
Sources: Consumer Affairs, Automotive News, Consumer Action
