Sean Reyes

Company: Recall Masters

Sean Reyes

Recall Masters

May 5, 2021

Should Money Trump Customer Safety?

With vehicle inventory low, many dealers have to place a heavier focus on used cars to stay in business. In the current market, dealers are frequently outbid by other dealers for decent used vehicles or, more likely, are forced to pay thousands over retail value to acquire inventory. Add into that cost any auction fees, transportation, recon, and detailing, and … well you get the picture.

Some larger pre-owned companies such as Carvana bid against themselves to acquire a vehicle. Insane! 

Dealers now have to turn inventory faster to avoid additional costs. And therein lies a problem. Dealers can miss out on acquiring used vehicles because of price. And, with fewer new vehicle models to entice customers to trade, dealers have also lost the best way to acquire front-line used vehicles via service or trade-ins.

As a result, once again recall completion rates fall as used inventory needs to be turned as fast as possible. So many dealers don’t complete the recall work before selling on to a customer, as it is not currently required by law.

Well, that might be about to change. A recent article by the Detroit Bureau discusses these challenges and upcoming legislation that will require by law that recalls are fixed for used cars before being sold to a new customer. According to the article, 40% of used vehicles sold at retail have at least one unrepaired recall. Legislation is being pushed in Congress to put the recall law into place, spearheaded by Sen. Blumenthal, with support from Senators Edward Markey and Elizabeth Warren, (who both co-sponsored the bill). Considering the current political balance of power, this bill has a far stronger chance of passing into law than in the past.

The National Automobile Association argues against this legislation, feeling it would be harmful to dealers by essentially creating a “trade-in tax” that would devalue used vehicles. Consumer advocates don’t agree with NADA. One stated, “I doubt many drivers would consider door latches that might fail, airbags that might not deploy, seat belts that might not work, engines and brakes that might fail, and other serious safety defects our investigation routinely revealed as ‘minor’ problems.”

What a conundrum! I am all for dealerships making money and understand these are tough times. Dealers are paying more for used cars than ever and are being forced to turn cars quicker.

But the bottom line is that any vehicle sold should be safe for the consumer buying it. So, what is a dealer to do? I would love to hear some thoughts on this subject.

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

149

No Comments

Recommended Posts

Scheimpflug: The Engine Behind New York’s Creative Vision

In a city that never stops creating, Scheimpflug stands as a cornerstone for independent filmmakers, photographers, and producers alike. As a premier camera and lighting rental house in New York, we’re more than just a source for top-tier equipment…

scheimpflugg flugg

napollo

18
7 days ago

1. Custom Gifts Show Thoughtfulness

In the corporate world, employee appreciation isn’t just about saying “thank you” once a year—it’s about consistently showing your team how much they mean to your business. While generic gifts like mass-produced mugs or plain pens might see…

stweedmarketing stweedmarketing

napollo

11
7 days ago

Premium Probiotic for Mental Health: Omni-Biotic Stress Release & Stress Management

Premium Probiotic for Mental Health: Omni-Biotic Stress Release & Stress ManagementEnhancing Mental Clarity and Emotional BalanceFor individuals struggling with stress and anxiety, or anyone seeking improved mental clarity and emotional balance, …

SEO@omnibioticprobiotic omnibioticprobiotics

napollo

8
7 days ago

Powering Online Growth with Expert Ecommerce Management Services

Powering Online Growth with Expert Ecommerce Management ServicesRunning an online store isn’t just about having a nice-looking website—it’s about maintaining a seamless shopping experience, ensuring consistent performance, and staying ahead of …

napollosoftware software

napollo

9
7 days ago

Sustainable Flooring Options to Elevate Your Eco-Friendly Home Renovation

When you’re dreaming up your next home renovation, flooring might not be the first thing on your list—but it should be. The material beneath your feet plays a huge role in how your space feels, performs, and, most importantly, how much of an impa…

parmafloor parmafloors

napollo

8
7 days ago