Senate Bill Could Force Recall Repairs & How You Can Capture More of That Work, from Driving Sales.
Recalls can be lucrative service work for dealerships. However, when recalls are announced, most consumers aren’t informed that their vehicle is subject to a recall. As a result, an estimated “46 million cars with unfixed flaws” are currently driving around, according to a recent article in Automotive News. A new bill proposed in the Senate would mandate that states require recall work be completed before an owner can register their vehicle. This bill will assist in informing consumers that their vehicle is subject to a recall and also force the consumer to take action. The article also mentions a “separate initiative, backed by the Transportation Department, to prohibit the sale of used vehicles that have open recalls.” Something that is already mandatory in new vehicle sales.
With the massive number of recalls our industry is currently experiencing, surely dealers want to capture as much of this work as possible. The additional scrutiny and legislation being enacted and proposed should impact the percentage of customers who are aware that their vehicles need service. The most cited reason for incomplete recall work is that the consumer is unaware that the recall exists. Even when dealers or OEMs do reach out to consumers, oftentimes consumers mistake the mailing as junk or solicitous, without even bothering to read it. As consumers become more informed – whether that is due to a more impactful design on the recall notice from the manufacturer; a dealer mailing; or perhaps by being prevented from registering their vehicle; it would be wise to capitalize on this by doing everything you can to capture this business. Customers may be mandated to fix their vehicles, but there won’t be anything mandating that they fix it with YOU.
How does a dealership best position itself to persuade a consumer to choose their dealership over their competitor? By beating everyone to the punch.