SALT LAKE CITY, UTAH --- A new Utah law relaxing state control over who is permitted to buy salvage vehicles at auction has stirred controversy.
The new law permits salvage vehicle sales to out-of-state or out-of-country buyers authorized to do business in their respective jurisdictions, in-state buyers who are registered to do business in Utah or have a Utah sales and use tax license, and public buyers with a purchase limit of five vehicles per year.
Backers of the legislation included Insurance Auto Auctions, a North American automotive salvage auction company. Opponents of the legislation included the Automotive Service Assn.
"There is a risk of vehicles being placed on the road that should not be, without significant inspection and repair," said Bob Redding, ASA's Washington, D.C., representative. "Generally, our state inspection laws are not sufficient to protect the motoring public from these types of transactions. Those in less-developed countries will have even fewer consumer protections."
IAA has a much different point of view on the change in law.
"We are pleased with our revision efforts and the passing of Utah Senate Bill 193," said Tom O'Brien, CEO of IAA. "The continued success of the salvage industry depends on its ability to grow and the continued support of a robust selling, bidding and buying environment."