I thought that there was a stop sell for GM dealers. In that case, wouldn't they have to sit on the vehicle until the recall is addressed before they can move the vehicle, wholesale or otherwise? Regardless of the potential gain / loss, no one in the right mind is going to buy an asset via trade that they can't do ANYTHING with.
I could be completely wrong on this of course!
You can sell a vehicle with open recalls at dealer wholesale auctions. You just cant sell it to the public if its new. Used most states allow it. No federal law prohibits the sale of used with recalls.
The stop sale is also only on new in dealer inventory vehicles. Used vehicles can also be sold with an open recall in most states. This happens all day everyday and not because of nefarious reasons but because most dont check recalls on used vehicle inventory unless there is a circumstance that needs it addressed. Now there are a handful of states that do require even used ones to be cleared up (California). I don't know of any others definitively other than California. The state that I am in (GA) does not care about used vehicles just NEW..
Federally they only care about NEW with recalls and no law exists about USED with recalls federally.
So again this isn't the gotcha that people think. It happens all the time, everyday, all day, and will continue to be business as usual.