In our first episode on recalls, we talked with Sean Reyes, the Chief Marketing Officer of Recall Masters. Sean discussed the current recall crisis and how service departments can use it to bring in new customers and increase revenue. Sean returns to the podcast in this episode to talk about:
The laws surrounding selling used vehicles with open recalls
Who has the responsibility for recall repairs
What dealerships can do to get more customers in for recall repairs.
Three Key Takeaways About Recalls
Recalls are a problem that isn't going away. Data shows that more dealerships and consumers are taking action, but the numbers are still way below what they should be. Recalls are piling on top of recalls from previous years.
The scariest variables are the recalls coming from software and electronics. These technologies govern driving, braking, and vehicle operation. If one in four vehicles on the road has a dangerous recall involving key vehicle operations, it's a very scary scenario. And that's not even taking self-driving cars into account.
This is a critical moment. There is a shortage of parts and a lack of technicians. But there are positive changes accelerated by the pandemic, such as mobile repair and vehicle pick-up and drop-off. Dealerships need to embrace these changes instead of trying to return to a pre-pandemic way of working. These new processes can win back customers from independent shops and evolve the recall department to be a revenue driver in the future.
If dealerships and consumers don't get the recall issue handled soon, it's likely more federal and state legislators will get involved in the next five years. We can avoid this by simplifying the process for consumers and making compliance a keystone of the process. Dealerships that want to handle recalls more effectively for their customers can reach out to Recall Masters. The Recall Masters team can offer advice and education to help dealerships share success within the industry.
Hit play now to listen to the full interview with Sean Reyes and get more insights into how your service department can take advantage of the recall crisis.