Phone: 630-495-2282 Fax: 630-495-2260 Map/Directions

New Illinois law expands damage disclosure exemption items

November 24, 2010

Damage to video and telephonic components in new vehicles may be repaired without triggering disclosure to the purchaser, under a state bill signed into law Aug. 2 by Illinois Gov. George Ryan. A dealer must disclose in writing any damage, of which he has actual knowledge, that exceeds 6 percent of the vehicle's MSRP. Likewise, the manufacturer is obligated to disclose to a dealer all damage sustained by the vehicle-when it exceeds 6 percent of the MSRP-before the dealer accepts delivery.

This month's amendment to the Illinois Motor Vehicle Franchise Act expands the list of items that can be repaired with OEM equipment without triggering disclosure. Other items, exempt since 1995: glass, tires, bumpers and in-dash audio equipment. The latest exemptions would include video and telephonic components such as navigation equipment. Sens. Thomas Walsh (RLaGrange) and James DeLeo (D-Chicago) sponsored the legislation, which was supported unanimously in the General Assembly last spring.

Two other dealer-related bills await action by Ryan. One would make it illegal for anyone to install or reinstall in a vehicle any object in lieu of an air bag which is designed specifically for the make, model and year of that vehicle, according to federal safety regulations. Another bill would make the driver's insurer primarily responsible in incidents with a loaner vehicle. The dealer's insurer would be the secondary insurer on loaners and would remain primary on test drives. Ryan must sign or veto both bills by the end of August. The CATA will notify the membership upon any action.