Contact:	Bob Redding (202) 543-1440
For Release:	Immediate News Bulletin 96.58 Sep 12, 1996

ASA Chairman-Elect Testifies Before Congressional Subcommittee On Motor Vehicle Titling Bill

Opposes Salvage Definition, Encourages Post-Repair Inspections

Washington, D.C., Sept. 12, 1996 -- Automotive Service Association (ASA) Chairman-Elect Robert Anderson testified before a U.S. House subcommittee in reference to legislation that would establish nationally uniform requirements regarding the titling and registration of salvage, non-repairable and rebuilt vehicles. The bill, H.R. 2900, was introduced early this year by Rep. Rick White (R-Wash.) and has attracted the support of 147 co-sponsors in the House of Representatives. A companion bill was introduced in the Senate by Majority Leader Trent Lott (R-Miss.).

ASA opposes a provision in the bill that would define a salvage vehicle as "any passenger motor vehicle which has been wrecked, destroyed, or damaged to the extent that the total estimated or actual cost of parts and labor to rebuild or reconstruct the passenger motor vehicle to its pre-accident condition and for legal operation on the roads or highways exceeds 75 percent of the retail value of the motor vehicle ..."

In testifying before the Commerce, Trade and Hazardous Materials Subcommittee, Anderson said, "ASA believes that the definition for salvage already set forth in the law, with minor adjustments, is the most practical of the definitions. The Anti-Car Theft Act’s definition allows the decision to repair or rebuild the vehicle or sell it for parts to be determined by the owner’s economic self-interest and not by a subjective assessment of damage as a percentage of retail value. When an owner is faced with the economic reality that the cost merely to repair the vehicle exceeds its fair market value, then the owner’s economic self-interest dictates that the damaged vehicle should be sold for parts."

Anderson indicated that for motorists who lease vehicles, the option for repair may prove the most economically viable alternative, particularly if the vehicle was leased for a short time and a substantial amount is still owed on the contract. The salvage definition in H.R. 2900 also does not protect motorists who may not be in the position to purchase another vehicle if the existing one is sold as salvage or parts. These motorists usually include the elderly and others who require the cheapest means of transportation available.

Anderson also encouraged the subcommittee to amend the bill to provide for the safe as well as legal operation of vehicles by a definition which would require that a vehicle be repaired to state safety standards and pass applicable safety inspections. "ASA has been a proponent of comprehensive vehicle in-use safety standards, reinforced through mandatory state periodic inspection programs for all vehicles, especially those that have suffered significant damage," Anderson testified. "For vehicles that have suffered collision damage, it is essential that a variety of safety-critical components be inspected before they be allowed back on the streets. These include but are not limited to brakes, suspension and steering, safety restraint systems, lighting, glass, tires and wipers. We urge the subcommittee to encourage all states to implement post-collision inspections with detailed criteria for the effective maintenance of highway safety and the preservation of human life."

Anderson voiced ASA’s support for most of the provisions contained in the bill and its intent to reduce motor vehicle theft and fraud, and signaled his desire to work with the subcommittee to enact fair and effective legislation to deal with these concerns.

The Automotive Service Association is the largest not-for-profit trade association of its kind serving more than 12,000 businesses and approximately 55,000 professionals from all segments of the automotive service industry. ASA advances the professionalism and excellence in the automotive repair industry through education, representation and member services. Robert Anderson is the owner and operator of Anderson’s Automotive Center in Sheffield Village, Ohio.