A society reveals its character by the way it protects the less fortunate. Throughout its history, our state has always tried to do right by those in need.

That’s why the state Legislature was right to consider the issue of used-car sales. In Los Angeles, many working families buy used cars, if they can buy one at all. So our state needs to ensure that when they do buy these cars, they are buying cars that are safe. And the only way to know that is to know a car’s entire history.

Unfortunately, last year there was well-intentioned legislation that was signed into law that will have unintentional consequences for used-car buyers. There is a provision in the law that requires car dealers to provide what’s called a National Motor Vehicle Title Information System report to buyers. At the time it passed, the bill’s sponsors claimed that this would protect consumers from buying dangerous cars. At the Latin Business Association, we wish that were so. 

As an organization devoted to speaking out and standing up for underserved communities, we share the belief that low-income people need help when buying used cars. Unfortunately, the new law won’t do that. And since it goes into effect in July, it’s time we start talking about what’s wrong with it and how we can fix it.

First, the new law provides consumers with little more than a false sense of security. For instance, if an Angeleno purchases a used car and receives the NMVTIS vehicle history report, they are not receiving a full report. This is because the NMVTIS vehicle history report was never intended for use as a sales tool for sellers of used cars. The NMVTIS report is a Justice Department program that helps law enforcement officials fight vehicle fraud. If you are looking for a complete history on a car, the NMVTIS report is not the place to look.

Lack of information
For example, if a car had an accident that didn’t require a total salvage, the NMVTIS report likely won’t have any information on it. If a car had significant repair or maintenance work done, the NMVTIS report likely won’t have any information on it. And if a car had airbag deployment warnings, the NMVTIS report likely won’t have any information on it. 
Unfortunately, many consumers will unknowingly believe the NMVTIS report contains the entire vehicle’s history. And unscrupulous sellers will scam unaware consumers by using this mandate to embrace an “official government report” without disclosing the shortcomings of the system.
More than in any other community, many working families in Los Angeles depend on their car as their lifeline. A working car is critical for daily life. In these challenging economic times, many families can barely afford a used car, and it is critical that it is safe and free of damage. A false report that does not provide information about frame damage or other critical problems could be financially very devastating to many working families.
Furthermore, there is a real concern that California could become a dumping ground for states that do not report to NMVTIS – jeopardizing the safety of California consumers. According to NMVTIS, only 32 states fully participate in its program. This leaves an opportunity for dishonest individuals in the remaining states to send cars to cities like Los Angeles and fool working families into believing these cars are safe and clear of damage.
Mandating that Californians rely on a system that reports on such a small percentage of vehicles damaged is essentially creating a Swiss-cheese approach to protecting consumers.
This is why we support the Used Car Safety Act of 2012 (Senate Bill 990) by Sen. Juan Vargas, D-San Diego, that will make a simple change in the law to better protect consumers. It will provide Angelenos with more information about a used car’s vehicle history by permitting car dealers to offer an NMVTIS report or a comprehensive commercially available vehicle history report that receives data from all 51 U.S. jurisdictions. 
Angelenos who rely on their vehicles daily need to know that they are getting the best information possible about the reported history and safety of their car. That’s how we protect consumers. And that’s why we support SB 990, which will truly benefit all Californians.

Ruben Guerra is president and chief executive of the Latin Business Association in Los Angeles. A member of the Latin Business Association is a commercial vehicle history report provider.