CARS

MN Closes Loophole on Damage Transparency for Used Cars / Public News Service

A new law in Minnesota went into effect January 1st, aimed at reducing the risks for people buying used cars. That happens as more Americans rely on the market for previously driven cars.

Industry source Kelley Blue Book said used car purchases increased 10% last year in the United States.

While the prices of these cars have increased, so have the monthly payments for the new models. This also addresses the supply he chain issue.

Minnesota’s legislative changes address the issue of “title washing,” which allows used refurbished vehicles that have suffered significant damage in the past to avoid salvage designation.

Bill’s co-hosting state congressman, Sheryl Youakim – DFL-Hopkins – said she hoped the “previously salvage” brand would offer transparency, but would also offer flexibility.

Youakim says: “We were trying to find the ‘sweet spot’: not only to have safe, reliable cars on the road at an affordable price, but also to help buyers know exactly what they were buying. is.”

The loopholes the law addresses are specifically for cars coming from other states.

Branding is a cheap vehicle that retains the clean Minnesota title despite suffering damage that costs more than 80% of its value or causes the insurance company to declare the vehicle a total loss. is intended for

Insurance issues can be a tricky issue for recovered vehicles. But Youakim said if the previous damage was cosmetic, such as hail damage, allowing people to choose a more affordable car when they need it to go to work or elsewhere. This is very important.

“At 80% of the car’s previous price of $3,000, it’s just body damage,” Youakim said.

She said people in those situations will now receive this additional consumer protection.

The legislative change stems from recommendations provided by a task force with input from lawmakers, insurance companies and repair experts.

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