3 Recall Scares to Avoid

It’s the time of year when we start watching horror movies and going to haunted houses, yet nightmares can occur year-round in the automotive industry. Did you know that one in four vehicles on the road have an open recall? While recalls protect customers, they can be frightening for your dealership when they’re missed. With over 39 million people affected by recalls in 2023, there is a spooky amount of room for error.

Here are three scares to avoid when it comes to recalls:

Horrifying Information Gaps

Limited data and a system that doesn’t automatically check your inventory for recalls can leave you in a nerve-racking place. For instance, your store could miss a stop-sale before a vehicle’s sold, opening the door for legal trouble. Or you could jump the gun on recall appointments before you have all the necessary information or parts. This can lead to a trail of unhappy customers and technicians.

Terrifying Penalties

In August, the number of vehicles with a “Do Not Drive” recall jumped nearly 80% due to a recall for several Ford, Lincoln, Mercury, and Mazda vehicles. What if this recall notice got “lost in the shuffle”, you sold one of the impacted vehicles, and the customer was injured due to the recall? On the minor side, your reputation could be damaged by being associated to this recall miss. On the major side, your dealership could be sued by the customer for selling them the vehicle without informing them of the risk and you’ll be subject to fines and penalties from your OEM, the state, and the federal government.

All OEMs state that selling a stop-sale vehicle violates federal law. Dealerships that sell these vehicles can face payments of up to $6,000 per violation for each vehicle. Selling these vehicles may also lead to a violation of your franchise agreement with your OEM, and repeated offenses could result in termination of the agreement. With more than 1,000 vehicle recalls per year in the US, are you willing to face these fearsome fines?

Spine-Chilling Loss of Business

Every interaction with a customer is a chance to build loyalty. The number one way to ruin that opportunity is to become the monster in your customer’s recall story. Say you’re involved in a lawsuit, sell a defective vehicle, or simply aren’t transparent with the customer on the recall. Any of these can add up to angry customers and loss of business. Customer’s talk to each other, especially when it comes to bad experiences. Not only will they not come back, but they will defer others from your dealership both in service and sales.

Treat Your Dealership to Recall Knowledge

Manually checking VINs takes extra time and leaves you in a difficult spot. Whether a recall is mandatory or voluntary, knowledge is power. A comprehensive recall management solution gives your dealership actionable data whether it’s in accounting, sales, or service. Better recall data leads to better decision making. Better decision making keeps your dealership and customers safe and happy.

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