TJDFT ruling impacts vehicle rental companies' liability

The Court of Justice of the Federal District and Territories (TJDFT) has issued a ruling that impacts vehicle rental companies regarding the transfer of ownership for fleet vehicles sold to consumers. The court determined that a rental company remains liable for the regularization and transfer procedures of a vehicle if it remains the registered owner on record.

In a specific case involving Localiza Rent a Car S.A., a vehicle sold through a third-party dealer remained registered under the rental company's name, preventing the buyer from completing the legal transfer despite having paid for the vehicle. The TJDFT ruled that because the sale of former fleet vehicles is part of the company's economic activity, the rental company is part of the consumer supply chain and bears joint responsibility for resolving administrative hurdles.