Car mechanic and customer shaking hands

Since the start of 2015, there have been more than 100 million vehicle recalls in the United States. A major pain point for the automotive industry is figuring out how to improve recall completion rates. In a 2016 study, Carfax reported there were approximately 47 million vehicles on the road with at least one unrepaired safety recall. While this is bad news for OEMs, it can be a promising opportunity for dealers. Recalls provide opportunities to generate profit from service upsells, and from new customers who are more likely to purchase a new car.

Many dealers believe it’s the manufacturer’s responsibility to get the situation handled. However, completion rates are still not up to par. The best completion rates on new cars (less than 3 years old) will sometimes hit 80 to 90 percent, while older models struggle to reach 50 percent completion. This means there are still many unrepaired vehicles on the road. Take advantage of an opportunity to gain new business and help repair a damaged OEM brand image.

Why should my dealership pay for recall leads?

There are three major reasons you can profit from a recall.

  1. The recall service is fully paid for by the OEM.
  2. Upsells from non-recall service. A significant portion of recall customers will get additional, non-recall service work done at the same time, or they will eventually come back for service work.