January 1 saw the enactment of Tennessee House Bill 141, to the collective groan of consumers. In a nutshell, this new law prevents consumers from suing car dealers if they purchase a used vehicle with an open safety recall, as long as it was disclosed, and the customer signed off on that disclosure.

For many dealerships the law doesn’t appear to be a dramatic shift from what already takes place. So, what is different about it, causing it to draw the rage of consumer protection groups and organizations, fearing Tennessee will become the nation’s dumping ground for recalled vehicles?

While every other state in the nation has consumer protection laws that require recall safety disclosures upon the sale of an affected vehicle, Tennessee is the first state that will indemnify a dealer post-sale, IF, at the time of purchase, the consumer was notified of the existing safety recall.

While other states have tried to pass similar laws, all have failed ---- until now.

Lobbyists for the automotive industry are celebrating the law’s passage. However, in my opinion, there’s not much to cheer about. Let me explain: Certainly, as a car dealer, avoiding liability through the legal and democratic process is, understandably, a reason to cheer -- that I understand. Nobody wants to get sued. However, this bill was passed at the eleventh hour and attached to other legislation. As a result, consumer reaction so far is to feel tricked and slighted by state legislators, the automotive industry and lobbyists.

Sadly, this type of action just reinforces the old stereotype that car dealers can’t be trusted. There is also concern that dealers in the other 49 states will begin dumping used vehicles they can’t fix or resell to the state of Tennessee, because it’s now easier to sell them there without worry.

Personally, I don’t believe this legislation will stand. Based on reactions from the citizens of Tennessee, my bet is that politicians will quickly repeal this legislation and claim they are “listening” to their constituents. Once that occurs, the only ones left looking like “bad guys” will be car dealerships, since this legislation was originally pushed through by the dealer association.

Perhaps there is a middle ground?

What if the legislation went a little further than simply notifying consumers? What if it added that the dealer would provide a full report about all existing recalls along with instructions on where to go for the necessary repairs?

If we took this extra step and notified consumers about any open safety recalls AND also provided instructions and guidance on how to get those repairs completed, it would be difficult for a consumer to then come back and sue the dealer.

Adding this dimension to legislation is just a common-sense measure. It would illustrate that dealers are doing everything in their power to instruct the customer; and that the customer is aware. It would be difficult for a consumer who did NOT follow the instructions to then argue that they should be able to sue the dealer.

Consumer perception is a huge problem for dealers. This type of legislation only further feeds into that negative image dealerships and manufacturers have been working hard to overcome. Instead of introducing legislation that seemingly only protects dealers, why not find a middle ground where everyone wins?

Manufacturers hold dealerships accountable for customer satisfaction and the overall experience in both sales and service through surveys. Dealerships that fall behind the acceptable OEM standards can easily suffer consequences that reduce revenue and marketing exposure. And OEMs are increasingly tightening down on these expectations. Why? Because they value brand loyalty and retention. If a customer consistently has a poor experience with their vehicle, local dealership, or both, it is that much easier for a competing brand to conquest that customer, causing loss of market share.

It is an industry-wide problem as we all know that many customers fail to complete those OEM surveys. And, just like online reviews, the customers that do complete them are typically on opposite ends of the spectrum – they either love the dealership or they hate it. Most consumers in the middle simply delete the email or throw away the physical survey, never bothering to fill it out.

On top of that, taking your vehicle in for service does not rate at the top of many people’s list as the most fun thing to do. They simply don’t have the time to do it so it’s already an inconvenience for them, but they still do it because they want their vehicle operating safely and efficiently.

Well, here is where the importance of a great customer experience on every single visit comes into play. But, there is one area that trips up many dealerships and contributes to those poor CSI surveys.

Imagine this scenario: The customer brings their vehicle in for regular maintenance or to get a problem fixed. The problem gets fixed perfectly and the customer experience is spectacular. The customer is very happy --- until they get home, open their mail and find a recall notice on the same vehicle they just brought into the dealership. Why did the dealership not inform them and fix it during their visit? That scenario plays out every day in dealerships across America.

Now, they realize they must again find time in their busy schedule to RETURN To the dealership to get the recall repair completed. Not only does a return visit draw the customer’s frustration, but it also causes them to question whether the dealership can be trusted with assuring vehicle safety. It’s one of the primary reasons why consumers go to dealerships for repairs rather than independent repair shops. Once you’ve lost a customer’s trust, it’s not hard for them to defect from your dealership. These customers are also likely to give a bad survey result, spread the word on social media, advise others to avoid your dealership, go on Yelp to hammer your ratings, and perhaps will never again return.

Customers rely on your dealership’s knowledge and expertise to ensure their vehicle is maintained properly. Missing something as important as a safety recall during the check-in process or MPI, simply due to a failure to check, lack of resources, or some other reason, is a failure on the dealership’s part. In the customer’s eyes you are not keeping your promise of keeping their vehicle correctly serviced and safe for them to drive on the road.

Even if you don’t have available parts or shop capacity at the time of their visit to fix the safety recall, simply informing them that the circumstances exist, explaining why it cannot be fixed during their visit and that the dealership will schedule the repair as soon as the parts are available, will go far to diffuse their frustration and make for a happier customer.

Sure, they’ll be inconvenienced. However, as long as the dealership staff handles the situation with good communication, are transparent, knowledgeable and can advise the customer, chances are great that the customer will forgive and understand. And that will go a long way towards retention, customer experience and satisfaction.

The auto industry is hyper-competitive. Consumers have countless choices for buying and servicing their vehicles; from competing franchise dealerships to independent service centers. It is thus important to do the best to not only keep your customers happy, but also to continuously improve the customer experience to earn loyalty, referral business through word-of-mouth and online reviews, and to increase retention.

Listening to customer feedback, then using that to make changes and improve your dealership’s customer experience is not a new strategy. Customers complain all the time – sometimes the complaints are small, sometimes big and sometimes erroneous. Most managers do their best to rectify situations and satisfy customers – as they should. But there is more work to be done to raise customer satisfaction.

Well, a hidden source full of feedback exists which can be used to improve your customer experience and, perhaps, even to conquest customers from competitors. What is this treasure chest?

How about your competitor’s online reviews?

Think about it. Why are consumers in your PMA going to your competition rather than to you? What is the dealership doing right? What are they doing wrong? Online reviews give insight into what you need to know about your own customer experience and how to provide a more favorable alternative to your competitor.

These reviews can help you figure out what your competition is doing to frustrate their customers. Here’s your opportunity to craft a customer experience that appeals to your existing customers, while, at the same time, attracts your competitor’s customers.

Are your competitor’s customers complaining about long wait times for vehicle service or lack of communication? There’s an opportunity for you. Make sure that you don’t have long wait times in service by incorporating technology to communicate with customers and keep them up-to-date on the status of their vehicle. Then market the heck out of that! Do you think some of your competitor’s disgruntled and unhappy customers might notice and give you a shot? Why wouldn’t they?

Analyze all your competitors’ customer service issues and do what you can to fix those at your own dealership (if they exist), or market that your dealership doesn’t have these issues.

Don’t misunderstand me; I’m not advocating that you start sending out messages, “We’re better than Joe’s Ford.” It’s never a good idea to bad mouth your competitor. I’m only suggesting that, if you see pain points in your competitor’s processes, ensure that your dealership does NOT have these same pain points (or fix them). Then use those as unique selling propositions. In addition, ensure these same points are used to leverage and attract those unhappy customers.

This strategy can improve everything about your own store by forcing you to analyze what is working in your own dealership and what is not. It also provides the opportunity to ensure that your competitor’s pain points shape a different experience at your dealership. You’re looking for every opportunity to differentiate yourself in the marketplace, right?

This focus on happy customers opens the door to conquest other customers when they see your message and consider a move to your dealership.

Knowing what pain points exist in your market – whether that feedback is about your dealership or about your competition – is invaluable knowledge you can leverage to your advantage.

While the struggle to decrease unrepaired recall vehicles on the road continues, new business models and technologies are arriving which could dramatically reduce the problem. Foremost among them are the advancements in autonomous cars, the introduction of subscription services, and over-the-air capabilities.

How will each of these developments play a role in decreasing unrepaired recalls? Let’s examine this:

Over-the-Air Technology:
This technology already exists and is in use by automaker Tesla. Through over-the-air technology Tesla makes vehicle updates without an owner ever having to visit a service center. From software updates to adjusting suspension, Tesla quickly responds to complaints and, in the event of a recall, in most cases doesn’t need to notify the driver but simply uploads the software update directly to the vehicle.

Of course, there will be times where hardware is affected that requires physical repair. But Tesla isn’t concerned about tracking down its owners as it can simply push notifications out directly to the vehicle’s large computer screen. If Tesla really wanted to, it could probably even disable a vehicle until a recall is repaired by the owner. Tesla is highly protective of its vehicles and its reputation and, more likely than not, will take steps to ensure the safety of any of its vehicles on the road.

While this technology hasn’t yet been adopted by major automakers, the pressure to reduce unrepaired recall vehicles will likely lead to mass adoption -- considering many automakers already have wi-fi and other communication abilities (like OnStar) which could be used.

Subscription Services:
The current move by automakers and some dealers to offer subscription-based consumer models may also reduce unrepaired recalls. Unlike leasing a vehicle, consumers who subscribe to these services never really own it. Ownership is either held by the dealership, or the manufacturer, depending on which path a consumer takes.

Because these vehicles are rotated by consumers, when, for example, a subscriber wants to swap from a sedan to a SUV, or newer model, the dealership or manufacturer has the chance to repair any recalls before allowing a different subscriber to take it. In addition, dealers and manufacturers have a financial interest in each vehicle, since it’s an owned asset. I wouldn’t be surprised if, in addition to regular maintenance, recall repairs become mandatory for subscription service owners. Neither a dealership nor a manufacturer will want to risk devaluation or the loss of any subscription vehicles in their fleet.

Autonomous Vehicles:
While mass adoption of autonomous vehicles is arguably 10-30 years away, vehicle service and/or recall repairs could easily be accomplished without the need for an owner (or subscriber) to do anything, as these vehicles can drive themselves.

Any vehicle in need of repair could go to the dealership for service, while a different autonomous vehicle takes its place for the consumer, providing an efficient way for the consumer to have transportation without the inconvenience of waiting at a dealership.

Autonomous vehicles will also have decision-making abilities by default. These vehicles will know when dangers exist in the exterior world, identify these dangers and take steps to get any needed repair. Combine this with over-the-air capabilities and we may find a world in which recalls, repairs and maintenance are performed without a consumer’s intervention.

While two out of three of these technologies exist right now, there’s no clear understanding how each will affect the level of unrepaired recalls. Consumers are currently skeptical of autonomous vehicles, so it may be some time before the entire picture develops. However, chances are good that, as time passes, sentiment will change. Autonomous technologies could translate into a huge spike in service revenue as dealerships must no longer chase down owners to complete repairs.

Only time will tell how advancements in the auto industry make recall notification and service a thing of the past. I’d love to see unrepaired recalls vanish, both for the safety of those driving affected vehicles, and those sharing the road with them. Until then, our industry needs to remain dedicated to the effort and work past the obstacles we face.

It’s always frustrating to read articles about the challenges legislators, manufacturers and states have with low recall compliance rates. And, even worse than the challenges is the finger-pointing going on, the lack of cooperation and the unwillingness to invest in what is a major public safety issue.

A recent article in Automotive News illustrates this perfectly.

The article describes a rather broken system filled with organizations who perhaps do not feel this is “their problem.” The NHTSA is hounding manufacturers to increase recall repair compliance rates, but manufacturers cannot do it alone as their information is typically limited to the original purchaser, and, if the vehicle was sold as a certified per-owned vehicle, perhaps a second owner.

To reach those second, third and older generation owners, manufacturers need help getting recent owner information, so they can be contacted. One of the easiest and most accurate sources available is vehicle registration records at the state level. The problem is that these states either provide incomplete information (if any at all); or say they cannot help due to a lack of technology, funding and manpower.

Currently, recall repair compliance levels are rather poor -- only 70 percent of recalled vehicles are getting fixed. And, as vehicles get older, that number drops to 44 percent (5 to 10-year-old vehicles); and as low as 15 percent for vehicles 10 years or older. The statistics fall to even more dismal levels when you also include those vehicles with recalls that are considered by the OEM as “voluntary.”

Outside the US, some countries have better success gaining compliance from consumers (Japan 80%, Germany 100% and the UK-92%.) Why are these countries so great at getting consumers to fix open recalls while a workable solution evades the United States market?

It turns out that the solution to the recall crisis is rather obvious for the international market. The simple fact is that these countries don’t let consumers drive cars with open recalls. A consumer cannot even register their vehicle until any open recall is repaired. So, why doesn’t the U.S. follow the lead of what is obviously working in other countries?

Part of the reason is that the federal government doesn’t have the legal authority to enforce compliance. States are the gatekeepers of information and control their own vehicle registration processes without federal oversight. There is also the anticipated consumer backlash should a state try to mandate this.

But would it work? Yes, and here’s how I know: It’s been done.

The State of California, in collaboration with the Environmental Protection Agency (EPA), implemented a joint initiative whereby vehicles in the state of California could not be registered with any outstanding vehicle-emission related recalls.

The result? Vehicle emission related recall repair compliance in California is at 90 percent! The program is proof positive that collaboration and cooperation works. And this initiative was designed solely to preserve and improve the AIR QUALITY in California. Imagine what a similar initiative for safety-related recalls could accomplish. I’ll tell you: It could save lives!

California has proven that this system can work, produce results and, to the best of my knowledge, hasn’t caused the consumer backlash that agencies predicted.

As industry experts forecast slumping sales numbers, a recent article in Automotive News suggests that shops can pick up the slack by getting back to customer-pay work. I cringed when I first read that, fearing that dealers would take this advice and backpedal on their commitment to assist customers with recall repairs. It would be tricky to handle all recall work, while putting a primary focus on customer-pay revenue, without leveraging recall customers for some of that work.

However, my fear was somewhat overcome with a totally separate article I came across right afterwards. It suggests that dealers should handle recall customers delicately, while still ramping up their customer-pay repair orders. How, you may ask?

With Sunday service.

Why is this such a slam dunk solution? Well, according to the article, one dealership has found great success with Sunday service hours, handling about 55 repair orders on a typical Sunday from 10am to 4pm. 80 percent of which are maintenance jobs, including quick service. In other words, ALL CUSTOMER-PAY! This immediately increases customer-pay revenue, and it does so without tempting anyone into alienating recall customers. It’s exactly like having your cake and eating it too.

I still contend that recall customers are a profit center in the making if handled properly. These are customers who will show gratitude and future loyalty -- if treated right. However, I do also understand a dealership’s need to increase revenue in service through lucrative services and customer-pay repair orders.

These two thoughts (getting back to customer-pay and Sunday service) weren’t in the same article. But perhaps they should be. It just seems like a no-brainer. Sure, there are going to be dealerships that can’t use this due to blue laws, or union restrictions. But those that do will probably find that Sunday service is also a great way to grow their customer base. Having more convenient hours for consumers could bring back in those customers visiting independents because it is more convenient, as well as new customers who prefer Sunday service.

This win-win-win solution could increase revenue in the customer-pay category, all while increasing business through more convenient hours for customers. Your dealership can continue to nurture relationships with customers in all areas – including recall repairs. And those are all great things for a dealership.

Recall Masters’ Christopher Miller warns auto dealers they could be easy targets for aggressive plaintiffs’ lawyers; offers advice to keep them safe 

Aliso Viejo, CA, December 5, 2017— Recall Masters, Inc., the leading provider of automotive recall news, data, training, and communications, today announced that it recently helped a large dealership client quickly fend-off a lawsuit related to recall communications.   

The plaintiff alleged that she received text messages sent by Recall Masters on the dealership’s behalf that were not in compliance with the Telephone Consumer Protection Act (“TCPA”). Recall Masters provided information to the plaintiff’s attorney about the extensive preventative compliance audits and painstaking steps taken to conform with TCPA guidelines, which lead to the plaintiff promptly dismissing the case.  

According to Recall Masters’ President, Christopher Miller, while this lawsuit was quickly handled by showing the plaintiff that no laws were broken, the industry will remain under scrutiny and dealers should take compliance matters seriously. “In recent years, many manufacturers, dealers, and their solutions partners, have become the target of criticism and litigation related to text messaging/TCPA violations, deceptive advertising, and fraudulent claims,” explained Miller. “Attorneys representing plaintiffs claim that dealers are recklessly sending marketing calls and texts without proper consent under the Telephone Consumer Protection Act. On top of that, dealers continue to use aggressive, fear-inducing messaging attempting to coerce consumers into visiting their dealership. Upholding the highest ethical standard in our messaging and steadfast compliance with all laws has been and remains a number one priority for Recall Masters. And, in this case, those compliance efforts paid off for both Recall Masters and its client,” Miller added. 

Recall Masters helps dealerships send consumers recall notices through multiple channels including postal mail, text messaging, emails, social media and phone calls, and goes to great lengths to comply with the TCPA, reasonable interpretations of FCC orders related to it, and various federal and state laws. Because of its heavy investment in compliance, Recall Masters was able to help its client inform the plaintiff on its efforts, leading to a reasonable dismissal without prejudice.   

Recall Masters supported its client by providing documentation related to its compliance efforts. It also provided information about the TCPA’s exemption for calls and texts communicating information affecting the health and safety of consumers, which would reasonably include recall notifications. Recall Masters also demonstrated how it uses, out of an abundance of caution, a manual system to deliver its text messages with live agents personally interacting with every consumer scheduling recall repairs. 

The National Highway Traffic Safety Administration (“NHTSA”) states that in 2016 there were over 900 recalls affecting 53 million vehicles. Over 25 percent of the vehicles on the road in the United States are operating with an unrepaired safety recall. “Millions of people every day are riding in or driving next to a vehicle with a potentially serious defect at a significant cost to public and personal safety. Although manufacturers are required to notify consumers of defects, dealers are often in a better position to engage with consumers, but lack the knowledge and resources to send recall notices on their own,” said Miller. 

According to recent reports, more than half of Americans have ditched landlines and only use cell phone communications. Statistics also show that text messages have a 99 percent open rate and 95 percent of those text messages are read within 3 minutes of being sent, according to Forbes. The data clearly supports just how effective text messaging is as a communication channel. What’s more, in a September 2017 survey of consumer attitudes conducted by Recall Masters, 25.3 percent of respondents stated they would like to receive information about a recall on their vehicle “by any means necessary.”  And 8.9 percent stated that “text alone” should be the sole channel of communication. However, the standard means of communication for many manufacturers are phone and mail.   

“Consumers are often unaware that they are driving unsafe cars and multi-channel outreach is critical to getting that safety information into their hands. Such informational messages may alert the consumer to the fact they have an open recall and either provide additional information about the recall, or instructions to contact the dealership’s recall department for information and to set up service,” said Miller. “In the search for increased recall completion rates, we can’t ignore how consumers want to receive these notices. Consumer habits and preferences have changed. How important are potentially life-threatening recalls to an individual’s safety? Considering that the national average for car ownership is almost one per person, and that Americans logged 3.22 trillion miles on the road in 2016, I’d say that recalls affect a pretty big chunk of the population,” Miller added.  

The recent lawsuit isn’t Recall Masters’ first time helping its clients overcome TCPA concerns. In recent years, Recall Masters has aided about half a dozen clients successfully in responding to compliance-related complaints.  

“We believe that effective communication can save lives and dealers need to be better educated about how to correctly do this,” Miller stated. “The bottom line is that the current recall epidemic, which is set to continue for the next decade or longer, will lead to more dangerous driving conditions if modern, more effective, solutions are not employed. Legislators are ‘up in arms’ about low recall completion rates, but have little understanding of what to do. And far too frequently consumers don’t even know the recall exists. A multi-communications strategy that also employs texting will absolutely increase recall repair rates, if used correctly,” Miller stated. 

To learn more about Recall Masters complete beginning-to-end solution, schedule a demo or receive a free trial call: 888-651-4480; email info@recallmasters.com; or visit: http://www.recallmasters.com. 

# # # # # 

About Recall Masters: 

Recall Masters is the leading provider of automotive recall news, data, training, and communications. The company is dedicated to helping automakers and their dealers expedite the repair of recalled vehicles and make the roadways safer for everyone. Greater recall awareness and proactive management helps automakers protect their brand and build trusting relationships between automotive dealers, rental car agencies, auto auctions and consumers alike. Recall Masters is privately held and based in the Aliso Viejo, CA. www.recallmasters.com. 

Media Contact 

Sara Callahan 

Carter West Public Relations 

carterwestpr@gmail.com 

727-288-2159 

Sean Reyes 

CMO, Recall Masters 

sean@recallmasters.com 

949.246.6023

Technology has made a huge impact upon our modern society. In the past, standard postal mail and phone calls were sufficient means of communication. However, as people are increasingly inundated with junk mail and persistent telemarketer calls, their willingness to pay attention to these forms of communication has diminished. It has nothing to do with whether they want to receive important communication, it’s just more challenging to weed out the vital information from solicitations.  

There are some matters so critically important they need to be communicated quickly and with the communication method most likely to succeed. Today, that method is text messaging.  

Our federal government clearly understands the effectiveness of text messaging. Look at the mass notifications from Amber alerts.  Have you ever been in a public place when everyone’s phone suddenly went bonkers with an alert?  We all have. It’s not just Amber alerts. The National Weather Service uses cell phones to warn people of dangerous weather looming. Why? Because it works. And it saves lives.  

According to an article on theverge.com, more than half of Americans ditched landlines and only use cell phone communications. Statistics also show that text messages have a 99 percent open rate; and 95 percent of those text messages are read within 3 minutes of being sent, according to Forbes. The data clearly supports just how effective text messaging is as a communication channel. 

Most people have their cell phones near them almost constantly. During the recent fires in northern California many homeowners were unaware of the danger that lurked while preparing for bed that evening. Lives were lost, which could easily have been prevented. As a result, Federal, State and local governments came under fire for not using text messaging to warn those in the path of a raging firestorm.   

Let’s pump the brakes for a second, because we also recognize how abusive some marketing can be on the consumer’s privacy. Federal laws define the distinction. Businesses are limited in their communications with consumers via the Do Not Call lists, the CAN-SPAM Act and the TCPA. Yet, even those contain exclusions for communications that inform consumers of danger. Lawmakers know that texting is a highly-effective way of communicating with consumers and that leveraging this channel in times of emergency, or threat of danger, is in the best interest of the public.  

So, what about using text messaging to warn vehicle owners about safety recalls? How important are potentially life-threatening recalls to an individual’s safety? Considering that the national average for recalls per vehicle owner is almost 1 per PERSON; and that Americans logged 3.22 trillion miles on the road in 2016; I’d say that recalls affect a pretty big chunk of the population.  

In 2016 alone, more than 53 million cars were recalled for safety reasons, by far the highest number in the past 20 years. Thousands of injuries and deaths were caused by unrepaired vehicles that are still driving around. In most cases, the vehicle owner had no idea their life was at risk while driving. The standard means of communication is via phone; which over half no longer have; and standard postal mail; which often gets tossed in the trash, mistaken for junk mail. 

The bottom line is that the current recall epidemic, which is set to continue for the next decade or longer, will lead to more dangerous driving conditions if modern, more effective, solutions are not employed. Legislators are up in arms due to low recall completion rates, but have little understanding of what to do. And far too frequently consumers don’t even know the recall exists. Texting will absolutely increase recall repair rates.   

Consumers want to be safe. If sending a text message can save lives, then we should acknowledge that existing TCPA laws protect the automotive industry’s right to communicate to vehicle owners about unsafe recalls. For those recalls posing an imminent risk to a consumer, texts also qualify as an emergency exemption to the TCPA’s ATDS guidelines and can and should be used.  In the search for increased recall completion rates, we can’t ignore how consumers want to receive these notices. 

In a September 2017 survey of consumer attitudes conducted by Recall Masters, 25.3% of respondents stated they would like to receive information about a recall on their vehicle “by any means necessary.”  And 8.9% stated that “text alone” should be the sole channel of communication.  These results clearly indicate that consumers habits and preferences have changed. 

The Future of Used Car Recalls 

A recent Automotive News report states that one in four vehicles for sale by CarMax has a safety recall that need to be fixed. A separate report by consumer advocate group the Center for Auto Safety places it at 27 percent. Whatever the exact amount, the scandal has proven to be a black eye to the automotive giant CarMax. 

According to the Automotive News article, CarMax isn't authorized to complete recall repairs and close out recalls, the company stated that repairs are, ``based on the manufacturer's relationship with its dealers and registered vehicle owners, and not with independent used auto retailers, like CarMax."  

"Our experience shows us customers are in the best position to act on recall information directly with a manufacturer-authorized dealer," the statement went on to disclose. "We have found that dealers are often more likely to provide timely recall repair to customers rather than to a competitor, like CarMax, so we encourage customers to have recalls repaired at a manufacturer-authorized facility." 

In summary, CarMax lets customers know when there are open recalls on a vehicle the consumer intends to purchase and informs the customer they are better off getting the recalls repaired on their own, rather than CarMax handling it prior to the sale.  While it may be positioned as more advantageous to the consumer, CarMax has received quite a bit of criticism from consumer groups, having side-stepped overt disclosure of recalls due to a technicality of sorts and exposed consumers to safety risks.  

Some of the defects found in vehicle models sold by CarMax have been "responsible for thousands of injuries and dozens of deaths," according to the statement from the groups, which called for action from state law enforcement officials. 

While CarMax is not alone in this practice, this epidemic of selling vehicles with open recalls should be curtailed, if not eliminated. Consumers are aware of recalls and are increasingly irritated when sold vehicles by independent or franchised dealerships with an open recall. They dislike the process of signing a disclosure in the finance department, subtly notifying them of any open recalls on the vehicle. Consumer perception is already a challenge in the automotive industry - and these inconspicuous disclosure documents further leads to consumer distrust.  

With almost 100 million vehicles on the road today with open recalls, the last thing the industry should be supporting is adding to that number by selling used vehicles with open recalls. The recall situation is already exacerbated by the fact that, right now, new vehicles are rolling off the production line with the exact same defective airbags that are under recall.  In a couple of years, these will also require recall repairs.  In addition, let’s not forget that new factory recalls occur daily, which will need to be handled within the next 5-7 years.  

Is selling a car more important than preserving a life? No amount of profit justifies that and, I believe that many dealers feel the same way. The problem isn’t human emotion, but rather commerce. Dealerships can’t stay in business if they don’t sell cars and, if they hold onto cars for months awaiting a recall repair, they will lose money.  

The long- term solution lies in a coordinated effort and commitment between all parties involved: the government, OEMS and both franchised and independent dealers; to prevent these vehicles leaving the lot in the first place and to work together in unison to fix these recalls.  

 In the interim, it appears that independent and franchised dealerships are left to fend for themselves.  Dealerships that are interested in protecting their assets and the integrity of their dealerships in the eyes of the consumer, should pursue a comprehensive recall management initiative.  With the solutions available dealers can no longer shrug their shoulders and shirk the responsibility, at least, not without facing the similar fate and criticism that CarMax now faces.

With the influx of recalls, two of the biggest challenges for manufacturers and dealers are locating vehicle owners and implementing an effective communication strategy that compels those owners to bring their vehicle into the dealership for repair.  

Consumers affected by a vehicle recall vary from those who see news reports and immediately go into panic mode, to those second-generation owners not listed on recall lists as the current owner, who get no notification and remain ignorant. 

While the information is out there for consumers to find, will they go looking for it? And, if they do hear on the news, or get a notification that their vehicle needs a recall repair, where do they turn for more information? Well, many go right online and check out their local dealership’s website and the search yields disappointing results.  In turns out, dealerships either push consumers off to the manufacturer’s website or offer no information at all.   

Some dealers are fearful that being transparent about recalls on their websites could turn off prospective buyers. But is that true? Vehicle owners have a right to know if their vehicle has an open recall.  If a consumer believes that their make and model may be plagued with a recall – especially those that are safety related – they want more information.  

Most dealer websites provide sparse service information and pretty much stick to the marketing and imagery that comes with selling this year’s model.  There’s just not a lot of service-related information on dealer websites, let alone any recall updates. Imagine if your dealership bucked the trend and became a source of information for your customers. What would that accomplish? 

To start, providing recall information on your dealer website helps build consumer trust. You can become a trusted source of invaluable information, not only for customers, but for prospective customers in your community. Your website can’t mask the fact that recalls exists, nor should it.  

Car shoppers perform vast amounts of research on dozens of websites and it’s highly unlikely that they won’t encounter some recall-related news for the vehicle they are researching. Failing to provide information on your website subtly suggests that you are being less than fully transparent and honest and could hurt you more than you think because: 

• Consumers are then forced to go elsewhere for the information, which could lead them right to your competitors’ websites.  

• Consumers can easily bombard your dealership with call after call, trying to figure out the details of a recall repair, parts availability, information, etc., putting a drain on dealership resources.  

• Due to lack of information, consumers can then choose to opt for another brand altogether, because they don’t want to risk acquiring a vehicle prone to OEM defects, or don’t want the future hassle of having to get something repaired. 

Having a rich source of recall information on your website will benefit your dealership. Here’s what you should include: 

1. Obviously, you can’t include EVERY recall on your site. However, you can easily identify those which have the most inquiries and/or are the most important to repair for safety reasons. For these include information such as: a) what the recall is, b) parts availability and shop capacity for these repairs, c) estimated duration of repair, and d) instructions on how to set an appointment.  
2. Include a list of amenities your dealership offers to those bringing in their car for a recall repair.  Do you offer loaner vehicles, shuttle service, a $50 gift card for use on accessories, a car wash, multi-point inspection, etc.?  Clearly communicate all that your dealership offers and thank them for their time. This helps win their trust. A recall is perceived as an inconvenience to most consumers – make sure you show your appreciation for their time. 
3. Add a link to known sites such as MotorSafety.org or safecar.org, so that the customer can input their VIN and learn if they have any recall outside of the major ones. 
4. Better yet, add recall lookup functionality directly to your website. Make it as easy as possible for the consumer to find the exact information they need directly from your own site.  

Position your dealership as a source of valuable information to your customers up front, so that they know what to expect. This helps reduce customer frustration, helps service department capacity remain at sustainable levels and maximizes ROs. It also separates your dealership from its competitors by not shying away from some uncomfortable issues, but rather proactively offering consumers the assistance they seek. Perception, after all, is for many, their reality.