Washington mandates vehicle damage disclosure in sales contracts

On February 4, 2025, the Washington State Senate introduced Senate Bill 5592, a legislative proposal aimed at enhancing consumer protection in the new motor vehicle sales market. The bill seeks to address issues related to transparency in vehicle sales, particularly concerning the disclosure of damage and repairs to new vehicles.

One of the key provisions of Senate Bill 5592 mandates that dealers must disclose any known damage or repairs to a new vehicle if such damage exceeds five percent of the manufacturer's suggested retail price or $1,000, whichever is greater. This requirement is designed to ensure that buyers are fully informed about the condition of the vehicle they are purchasing. However, the bill specifies that dealers are not required to disclose damage related to cosmetic parts—such as glass, tires, and bumpers—if these parts have been replaced with original or comparable equipment.

Additionally, the bill stipulates that if a dealer fails to disclose known damage, buyers cannot revoke or rescind their sales contract based on that undisclosed damage. This provision aims to protect dealers from potential legal disputes while still holding them accountable for significant undisclosed damages.

The introduction of Senate Bill 5592 has sparked notable discussions among lawmakers and stakeholders. Proponents argue that the bill is a necessary step toward greater consumer protection and transparency in the automotive market, potentially reducing instances of fraud and misleading sales practices. Critics, however, express concerns that the bill may impose excessive burdens on dealers, particularly smaller businesses, by requiring them to navigate complex disclosure requirements.

The economic implications of this bill could be significant. By enhancing consumer trust in vehicle purchases, it may lead to increased sales and a more robust automotive market in Washington. Conversely, if dealers perceive the regulations as overly restrictive, it could result in higher prices for consumers or reduced inventory availability.

As the legislative process unfolds, experts suggest that the bill's fate will depend on the balance struck between consumer protection and the operational realities faced by vehicle dealers. The Senate will likely continue to debate the bill, considering potential amendments to address concerns raised by both sides. The outcome of Senate Bill 5592 could set a precedent for similar consumer protection measures in other states, making it a bill to watch in the coming months.