Auto dealerships and consumers now have additional layer of transparency to safeguard them from making uninformed acquisitions

Laguna Hills, CA, June 10, 2020 — Recall Masters, Inc., the nation’s leading provider of automotive recall solutions, today announced a partnership with VettX, an automotive industry software provider that enables auto dealerships to easily access and acquire vehicles for sale by private parties. The VettX platform connects auto dealerships to a massive inventory of vehicles that would otherwise be time-consuming to locate and purchase and helps dealers scan this high potential private market. The new partnership with Recall Masters should make VettX market analysis data even more effective

“We’re extremely pleased to include VettX among our list of automotive industry clients who want to safeguard consumers from dangerous recalls while helping dealerships acquire assets with complete transparency. This partnership further assists Recall Masters in its mission to safeguard the industry and consumers from dangerous recalls that pose a threat to all drivers and passengers on the road,” stated Christopher Miller, Recall Masters CEO. “Recall status can be difficult to find, especially when acquiring vehicles from the private market. VettX can now detail recalls related to the specific VIN of the searched vehicle as part of its market analysis.”

VettX's auto dealers are trained to navigate a list of ready to purchase private party vehicles available in their local markets. Each dealer is provided with a list of ready to buy vehicles that have been fully vetted by the VettX team. Vetted vehicles include details regarding vehicle condition, pricing information, and any potential open recalls. VettX's call center then reaches out to each seller to ensure the vehicle is as they claim it to be and arranges for a dealership to purchase it. Armed with this information, dealers can make a quick, educated decision as to whether the vehicle makes business sense for them.

“Partnering with Recall Masters allows dealers to easily scan every vehicle VIN for sale in the private market and look for recalls. This information is vital to our dealership community who need to make quick decisions on whether to purchase a particular vehicle,” said Ryan Dietz, VettX CEO and Chief Technology Officer “This integration is extremely helpful because it adds a secondary layer of asset protection to assist the buyer, making us one of the first private automotive market software platforms to compile recall data into the market analysis. In an industry where vehicle valuation, speed-to-market processes, and razor-thin margins dictate success or failure, this partnership gives our customers a tremendous advantage in the marketplace,” Dietz added.

About VettX:

VettX offers an efficient way to source pre-owned inventory. Through its web-based software, clients have access to current private party vehicles available in proximity. VettX's intelligent software automatically books out the vehicle and provides market analysis, enabling dealerships to make a quick, educated decision on the price that should be paid for the vehicle based on projected profit. To learn more about VettX software or ongoing software training call 530.228.1722, email info@vettx.com or visit: www.vettx.io

About Recall Masters:

Recall Masters is the leading provider of automotive recall solutions, using data, technology, and communications to connect dealerships and manufacturers with owners of affected vehicles. The company is dedicated to helping automakers and their dealers expedite the repair of recalled vehicles, making the roadways safer for everyone. Greater recall awareness and proactive recall management help automakers protect their brand and build trusting relationships between automotive dealers, rental car agencies, auto auctions, auto industry affiliates, and consumers alike. Recall Masters is a privately held company based in Laguna Hills, CA. For more information, please call 888.651.4480, email info@recallmasters.com or visit www.recallmasters.com.

All automobile manufacturers strive for dominance in the marketplace. Vying for consumer's money, trust, and brand loyalty is an ongoing challenge through a balance of quality, quantity, and a franchised network of dealerships that entice consumers to buy and service their vehicles. The last thing a manufacturer is looking for is bad publicity. However, it happens -- as was the case with Takata airbags – and this certainly does not play well with safety-oriented customers.

Then along comes a rogue automobile manufacturer that, on the one hand, introduces beautiful and technologically advanced vehicles. While, on the other, enjoys an enormous group of brand fanatics. All the while, it has butted heads with states and franchised dealers for deciding to forgo the normal route to vehicle sales. Tesla certainly does have some innovative technology, such as performing software updates and other service-related items over-the-air without a customer ever needing to visit a Tesla service center. But sometimes, technology can backfire. And it has backfired big time for Tesla.

In January of this year, an article in Automotive News reported that the NHTSA was petitioned to recall EVERY SINGLE TESLA EVER MADE due to unintended acceleration in 123 vehicles, resulting in 110 crashes and 52 injuries. These Tesla complaints run the gamut from vehicles that fail to stop, drive through garage doors and into the concrete walls of the house, to vehicles that simply take off on their own after an owner has put the vehicle in park and exited. Tesla, of course, denies fault, blaming the petition on an enterprising short seller of their stock. Little has happened since January, most likely due to the COVID-19 crisis, so it will be interesting to keep an eye on this in the coming months.

Can you imagine the consequences of an automobile manufacturer such as Ford or Honda (simply as examples) forced to recall every vehicle they ever produced? The backlash and damage to their reputation could be irreparable or, at the very least, a tough hill for them to climb to regain consumer trust.

The bigger point is whether or not NHTSA is even willing to consider a recall of such magnitude. If the NHTSA were to force Tesla to recall every vehicle it ever manufactured, it would be unprecedented and could damage the stellar brand perception that Tesla enjoys.

Regardless of the outcome, the fact remains that NHTSA is tasked with ensuring that vehicles on the road are safe for their owners and the other drivers they share the road with. While Tesla may be able to buck the franchise system (or keep trying to), the one entity they must play the same game with as other auto manufacturers is NHTSA – and that is a good thing! Safety and government oversight should be an even playing field for all manufacturers.

If the NHTSA chooses to force Tesla to recall every vehicle it has ever made it would be an unprecedented decision. But, more importantly, it could give the world a glance at what the future may have in store as vehicles become increasingly reliant on software and electronic technology such as self-driving, lane correction, auto parking, and other modern instrumentation. The next generation of vehicles is likely to have even more recalls, requiring frequent updates, similar to computers and cell phones. We haven’t seen the last of this.

It is an interesting topic for sure! What are your thoughts?

News has not exactly been great recently. And, I don’t know about you, but I welcome any good news that brightens my day in some way. For that reason, I loved a recent story a friend sent to me from the Charlotte Observer.

It is one thing to be involved in your community by hosting a blood drive or collecting holiday gifts for needy children (all worthwhile efforts, by the way) and quite another thing to go above and beyond these one-time or seasonal events.

What if someone needed a place to stay because they were homeless? Would you let them sleep inside your dealership at night? Let’s take it to the next level. Would you let them sleep inside a car that’s on your front line knowing that you may have customers looking at that and potentially wanting to buy it the next day? Probably not.

That, however, is exactly what one dealer has been doing since January. He now has over a dozen families that sleep in the cars on his lot nightly and expects that number to rise to 30 very quickly. The families arrive around 7:30 pm and leave by 7:30 am. Think about the quick work it must take for his staff to clean the cars every day to make sure that they are ready to show to a potential buyer. And they do this every… single… day. His community got wind of the news when he partnered with a local shelter to help, and locals have been donating food, supplies, and even a port-a-potty. The dealer also started a GoFundMe page to raise money to help get these families into stable homes.

While this certainly may not be for everyone, and perhaps not something you would do, I bring it up as it is so unusual and heartwarming. This act of kindness can only result in customer loyalty. Not only for those families he’s helped but also for members of the community. Could you imagine one of the families that he sheltered when they were down and out ever buying a car anyplace else once they are back on their feet? What about their families? And their family’s friends. And the local community that hears about his good deeds and joins in to help?

I’ve always believed that good deeds come back to you in the end. This dealer didn’t have to do any of this… but he did. This is community involvement to the extreme. My guess is that he would NEVER let any customer drive off his lot that wasn’t safe either.

And that’s just not being a business owner or a car dealer but being something even better… a human.

Partnership drives much-needed dealership service revenue by facilitating recall repairs at no cost to private-party vehicle sellers

Laguna Hills, CA, May 19, 2020 — Recall Masters, Inc., the nation’s leading provider of automotive recall solutions, today announced a partnership with Boost Acquisition, a data and technology developer that connects in-market vehicle sellers with potential buyers at online and franchise dealerships. With the inclusion of recall data, Boost Acquisition can now check for-sale-by-owner vehicles for unrepaired recalls, reach out to their owners, and schedule repair appointments with client dealerships. Recall repairs are at no cost to the vehicle owner as dealers work with the manufacturer for reimbursement.

“Franchise dealerships are currently searching for revenue and consumers are hesitant to spend. Boost Acquisition has a much-needed solution for both dealerships and vehicle owners. Millions of vehicles with dangerous recalls exchange hands every month, leaving unsuspecting vehicle shoppers in the dark, placing dealerships at risk for product liability lawsuits and forcing sellers to accept less-than-ideal vehicle valuation. Our partnership with Boost Acquisition closes that gap in knowledge,” explained Christopher Miller, CEO of Recall Masters. “They also go a step further by connecting vehicle owners with factory-authorized dealerships who can repair those vehicles at no cost to owners. We’re so proud to include Boost Acquisition among our impressive list of automotive industry clients who want to safeguard consumers from dangerous recalls,” Miller added.

The demand for used cars has dipped in the past few weeks due to shelter-in-place restrictions, requiring that owners attend to those recall repairs to get a more favorable selling price. With recall data integrated into its solution, Boost Acquisition can better serve both dealerships and consumers.

“The data Recall Masters provides helps us get these vehicle owners into the dealership at a customer acquisition rate not available through other means,” said Patrick J. Howell, CEO at Boost Acquisition. “Not only do dealerships see revenue from the factory for recall repairs, but the interaction with consumers is leading to additional service repairs and vehicle sales. It is not the original intent, but a pleasant byproduct of taking care of the customer during their moment of need. Our client dealerships are amazed at the results and the quality of the customer interactions. More importantly, these experiences are exactly what consumers are desperately searching for.”

Recall Masters provides recall solutions directly, and through strategic partnerships, to more than 3,000 dealerships nationwide. Also, two auto manufacturers, BMW of North America (BMWNA), and Mazda North American Operations (MNAO) are contracted with Recall Masters to assist with boosting recall completion rates for select dealerships in key US markets.

About Boost Acquisition:

Boost Acquisition provides for-sale-by-owner (FSBO) consumers with a consumer “hub” to offer a variety of services. Not only do we help these vehicle owners sell their vehicles, but we’re also scheduling recall repair services with factory-authorized service centers and facilitating new vehicle purchases by connecting them to franchise dealerships. Boost also provides dealerships with an online marketplace where they can make offers on FSBO vehicles for sale. Offer prices are enhanced by utilizing information on open recall values (service and parts). In short, a vehicle is more valuable to the dealer if it has a serviceable open recall. Dealerships can also convert FSBO consumers to a new vehicle transaction. To learn more about Boost Acquisition, please call 858.829.9488, email info@boostacquisition.com or visit www.boostacquisition.com.

About Recall Masters:

Recall Masters is the leading provider of automotive recall solutions, using data, technology, and communications to connect dealerships and manufacturers with owners of affected vehicles. The company is dedicated to helping automakers and their dealers expedite the repair of recalled vehicles, making the roadways safer for everyone. Greater recall awareness and proactive recall management help automakers protect their brand and build trusting relationships between automotive dealers, rental car agencies, auto auctions, auto industry affiliates, and consumers alike. Recall Masters is a privately-held company based in Laguna Hills, CA. For more information, please call 888.651.4480, email info@recallmasters.com or visit www.recallmasters.com.

Recall Masters' Dan Beres, Managing Partner, explains how dealerships are handling safety recalls. From NADA 2020.

The problem of how to increase recall completion rates has been a thorn in the side of both manufacturers and dealers for quite some time. Despite numerous attempts from several sources, a majority of consumers fail to pay attention to any notification because they discard the mailers, discount the severity of the recall or simply don’t have the time needed to visit the dealership in order to complete the repair.

Procrastination and lack of convenience are both huge factors that prevent consumers from getting the repair done. And that is just the vehicle owners that we know of. Add to this the huge amount of second and third generation owners that never get notified by the manufacturer and that is a whole other problem.

Well, perhaps there is good news on the horizon. Several manufacturers plan to implement software capabilities in new vehicle models which allow over-the-air (OTA) updates. In some cases, especially software-related recalls, consumers won’t have to do anything. Similar to how computers and smartphones update automatically, vehicles will soon have a similar process. Vehicles equipped with this technology could make software-related recall completion percentages a number that is unheard of – 100%!

According to an article in Automotive News, three automakers will adopt and install OTA update technology into their new and refreshed model vehicles. While, initially, these OTAs will be limited to vehicle infotainment systems, these automakers plan to extend updates to include recalls for safety-critical issues. Tesla has been doing this since its inception, so the technology exists. In fact, in the spirit of advancing vehicle technology, Tesla recently released all its patents, making them open-source for anyone to use

Assuming that manufacturers adopt OTA abilities in their vehicles, consumers will benefit in that they will no longer have to visit the dealership for software-related recall repairs. Imagine if you had to take your laptop into the Apple store to get software updates, that would be a major inconvenience.

Of course, this consumer convenience comes at a price for dealers – namely fewer opportunities to identify and/or sell additional repairs to customers. However, there will still be plenty of recall and other repairs that aren’t simple software updates, so dealers will still have opportunities… just not as many.

To prepare for the future, dealers would be wise to take a look at how they can provide even better service and build a higher level of trust with their customers at a faster pace in order to keep consumers coming in for regular maintenance.

As time goes on, it is inevitable that technology will increase. But there’s always a silver lining. So, start building those relationships now to be well prepared for any future. As solely focusing on the “now” tends to only last until “later” becomes a disruption in revenue.

Recall Masters' Dan Beres, Managing Partner, presents the State of Recalls at NADA 2020.

In search of service revenue, dealerships turn to randomly scheduling service appointments regardless of shop capacity. Or they take everyone that drives up. This can easily overwhelm the service department. It leaves customers frustrated and causes a LOSS in service revenue from both new/drive-up customers and customers with appointments.

How many times have you heard about the customer that made an appointment for a quick service who had to wait hours for an oil change? Or the regular customer who showed up and nobody knew about their appointment? So, they also suffered a long wait. This can be quite maddening and can drive your most loyal customers to the independents.

The truth is, consumers would prefer to service with the dealership. A July 2019 survey of 16,000 consumers revealed that 3 out of 4 consumers would prefer to service at a franchised dealership even after their warranty expires. So, if they perceive dealerships as their destination of choice, why are franchised dealers losing loyal customers to independents? The answer to that question is tied to convenience. Consumers are tighter on time. For some, it’s about cost, but almost all consumers are pinched for time more than cash.

And, if you allow someone to cut in line, that is how your scheduled customers will view those who pull up unannounced. Ideally, the number of cars coming into the service department should be the number that it can support efficiently. However, many Service Advisors take all comers, even if they are overbooked with appointments and service pending from existing vehicles. What happens then? Traffic jams.

According to an article in Digital Dealer, the top 20% of a dealership’s customers account for 79% of its profits. And, by replacing just half of the bottom 20% with customers similar to the top 20%, a dealership can increase its profit by 40%!

It may be worth taking a look at the cost of overbooking and going beyond your shop capacity. Perhaps a better idea is to focus on efficiently completing existing work, even if that means turning away drive-ins. Yes, that’s hard to do. But, in the end, if you are transparent with a “walk-in” and explain you are turning them away for their convenience, you can win them over. You can also offer an incentive for returning with an appointment or rescheduling for a more convenient time. Then you stand a better chance of retaining a customer, keeping them happy, and continuing to earn their business. 

If you do not want to, or can’t afford to invest in expanding facilities, there are many solutions available that can help maximize your shop while keeping customers satisfied. They may also be worth investigating.

Recall completion percentages have been increasing, but despite increased communication attempts, that increase is hitting a plateau.

A recent trend reveals that many vehicle owners are very interested in mobile services. Currently, the percentage of independent repair shops that offer mobile services dramatically outweighs franchised dealers. Are dealers losing their customer service edge to independents who are willing to go the extra mile to win the business?

According to an article in Automotive News, the majority of services offered are valet services, where the dealer comes to the house, picks up the vehicle, completes the work, and then returns it. 28% of dealers offer valet service, while only 6% provide mobile service, which is performed at the customer's location, home, or work.  

However, a 2018 study by Cox Automotive reported that 39% of consumers prefer mobile service over valet services, which came in at 36%. While that disparity may not seem significant, when it comes to recalls, those numbers could be even higher.

Now, I can imagine what many of you are thinking; that it can be detrimental if the customer does not visit the dealership. They then fail to get the full experience that dealers work so hard to achieve. Or, perhaps you may feel you will be unable to upsell effectively when the customer is not at the store. You can also lose out on any equity mining opportunities to trade the customer into another vehicle. All can certainly be true. However, consumer demand does tend to be a driving factor. And, as demand for these type of services increase, it is certainly worth taking a look at to stay competitive. It is just a segment of your customers that desire this type of service.

Also, if you think that offering mobile services can be costly and that it would be impractical to perform recall work at a consumer’s location, according to the Automotive News article, that is not always the case. Many recalls can be completed at the consumer's location, similar to the ease of quick lubes. While any recall requiring a lift will need to be done at the dealership, dealers can fix many recalls, including airbags on site. Many OEMs are testing and implementing mobile service programs with their dealers, including Toyota, Ford, and BMW. 

Independents may currently have the lead when it comes to mobile service implementation, but it wouldn’t be that hard for a dealer to gain back market share rapidly. And the benefits are worth it. Today’s consumers are all about convenience, and independents can't perform recall repairs. Consider a customer in need of a recall repair who calls your dealership for mobile service. Is it that hard to imagine upselling them to have an oil change or other service done at the same time?

The most significant complaint from consumers regarding recall repair is that, while they want to have it done, they don't have time to come into the dealership. They are also nervous about losing access to their vehicles for some time. It is perhaps worth considering what services you could provide at the customer’s location and what recall repairs you can do off-site along with oil changes, tire replacements, and more. By offering these services in addition to a recall repair, your dealership could increase service revenue without having to upgrade facilities with additional service bays.

With mobile service, you could capture market share away from independents, and, at the same time, build a new customer base by conquesting customers from independent service repair facilities. In so doing, it can be possible to employ more technicians without needing more bays. You can also increase your customer base through conquest, increase recall and warranty work, and boost your recall completion rates.

Mobile services can offer your dealership a way to help solve the problems that have driven customers away from your store and towards an independent. And give you a competitive advantage that independents cannot combat. That would be an excellent way to recapture service business (especially routine maintenance) while showing the customer that service at your dealership can be just as convenient.

I realize it is probably not a practical solution for some of you. But according to the Automotive News article, it may at least be worth a look … it's always good to be ahead of the curve and on top of anything that can keep you winning in this highly competitive market!

With the increasing demand for service repairs, dealers are scrambling to recruit more technicians. At the same time, the pool of experienced technicians is dwindling, as not enough new technicians are entering the workforce -- and demand will only increase.

Regardless of how much money your dealership may spend to expand your facilities to accommodate more work, if there aren’t technicians in the bays to do it, it’s a losing proposition. In fact, many dealers are aggressively recruiting technicians from other dealerships, offering increased pay and better working conditions. But don’t throw in the towel just yet. Winning the war for talent could be within your reach, with a little thinking outside-the-box.

One way to increase technician availability is by recruiting inexperienced young people and providing them with on-the-job training. They can start with routine quick-service type ROs including tire rotation, changing out windshield wipers, checking fluids, and lamp replacements. While this can help provide more useful hands, it also takes years for a brand-new technician to gain enough knowledge to be on par with the already experienced technicians. And, as new technology continues to dominate vehicles, even the most experienced technicians can essentially be forced to go back to school to learn how to repair today’s highly advanced vehicles.

According to an article in Automotive News, there is perhaps a more practical way to access technicians who can immediately perform and increase service revenue. That is by recruiting military veterans. And that makes perfect sense.

Frequently, when businesses actively recruit military veterans, it is because they want to reward these patriots for their service to our country. However, let’s not forget that many military veterans simply did their four years of service, learned a trade, and left. Many were fixing multi-million-dollar aircraft, tanks, military transport vehicles, and other machinery that are, in fact, vehicles. These veterans leave the military with a skill set that may even surpass many dealership technicians, except for the OEM specific knowledge. This potential pool of candidates already has an extremely sophisticated knowledge-set, and it can be much easier (and quicker) to get them productive.

It might, at the very least, be good food for thought.