CHARLOTTE, N.C. — CarMax is the biggest used car dealership in the U.S.
In North Carolina, it dominates the competition, and the Independence Boulevard location sells more used cars and trucks than any other dealer in the state.
Other CarMax locations sell the second, third and fourth most vehicles in the state.
Three auto safety advocates -- the Center for Auto Safety, Consumers for Auto Reliability and Safety Foundation, and the MASSPIRG Education Fund -- looked at about 1,700 vehicles at eight CarMax dealerships in Connecticut, Massachusetts and California.
Safety group: 27 percent had at least one open recall
They did not look at locations in either Carolinas.
The report, Used Car Roulette, found 27 percent had at least one open recall that still needed repair. Some of the recalls are major safety ones you've probably heard of, ones tied to deaths, like Takata airbags and GM ignition switches.
"CarMax happens to be the largest retailer of used cars so they were the most easily found candidate in terms of reviewing, but we do not single out CarMax as being different than probably the vast majority of dealers out there," Center for Auto Safety Executive Director Jason Levine told Action 9 investigator Jason Stoogenke. "When recalls are not repaired, that is putting not only the driver in danger and not only the passengers in danger. Other drivers on the road can be put in danger as well as pedestrians."
The law says it’s OK
The law says dealers can't sell new vehicles with open recalls, but they can sell used vehicles with open recalls. Some lawmakers are trying to change that. This bill is going through the U.S. Senate as we speak.
In the meantime, the Federal Trade Commission got a court order that says six major dealerships, including CarMax, have to tell buyers about recalls.
There were two consent orders.
The first was finalized in December 2016 with three dealerships, including GM, Koons and Lithia.
The second was finalized in March 2017 with the other three dealers, which were CarMax, WestHerr and Asbury.
Levine said that's not good enough, and his group is suing the Federal Trade Commission.
"It's deceptive, and disclosure doesn't really fix this problem, and it certainly doesn't fix the car," he said.
CarMax: ‘We've led the industry in recall transparency’
CarMax only has to disclose recalls, and the company told Stoogenke that's exactly what it's doing; that it's even "led the industry in recall transparency." Every vehicle listing includes a link so you can look up recalls. Customers sign papers acknowledging this.
CarMax also points out that car companies issue recalls, but then it can take months for parts to be ready. Plus, CarMax isn't allowed to do recall repairs -- no used dealership is. Only the franchise dealers can.
The company also sent Stoogenke a national article that quoted an economics professor as saying consumer groups "target CarMax" and that if you make it illegal to sell used vehicles with open recalls, "virtually all U.S. motorists" would be stuck with rides they can't sell.
Action 9 gets very few complaints about CarMax, especially considering its size.
Customer: 'It was horrible’
Ben and Cynthia Rivera said they bought a used Jeep from CarMax a few years ago. They said it was under recall for an ignition issue. The ignition could slip, shutting the engine down while driving.
"One time I was in the middle of the road and the car just, the minute I hit a bump, it just turned off while there was traffic coming," Cynthia said.
She was not hurt but was upset with CarMax for selling her the vehicle.
"It was horrible because I expected better from them," she said.
The Riveras don't recall if CarMax told them about the recall before they bought the Jeep.
Before you buy:
- Have a mechanic you trust check the vehicle.