Safety Recalls: Your Path to Profits - AutoSuccessOnline
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Safety Recalls: Your Path to Profits

How Dealers are Generating New Profits from their Inventory

Are you missing out on all the warranty reimbursement you’re entitled to? We have seen an interesting trend with our franchised dealer clients since COVID-19 caused revenue havoc: their inventories are swelling, but they are increasing their monthly profit through their service bays.


And, they are finding safety recalls many dealers might miss. How?

First, let’s look at the big picture. Provided to the right are three trend lines from the past two months: We sampled about 20% of our dealer clients to obtain insights into how they are turning lemons into lemonade.

Over the past two months…

Graphic 1 shows the total No. of vehicles in inventory for these dealerships.

Graphic 2 shows the total No. of recalls repaired. That is, the reduction in open safety recalls. (Of note: There are about 1.33 recalls per vehicle, on average.)

Graphic 3 shows the revenue that has been generated over this time.

How are dealers finding safety recalls many dealers might miss? 

In a word: Automation!

Our clients have found that by relying on their OEMs to provide lists or checking VINs manually, it is not only time-consuming, but recalls are missed. 


With recalls being issued nearly every day, manual processes make matters worse: It’s like playing Whack-a-Mole. Manual processes cut into profits.

• Missed recalls = missed revenue. 
• Manual processes = lower profits. 

Clients have told us their average warranty reimbursement has increased after automation — they found an additional 8-12% more — every month!

As you look to boost profitability, learn what others have proven works: dealers are finding additional warranty reimbursement obtained by repairing inventory recalls— powered by automation. 

You are leaving money on the table if you do not automate your daily recall-management. You can apply this automation to your current inventory as well as your customers’ vehicles. 


With dealers’ new-found appreciation for repairing safety recalls, prepping now to unlock additional profits will also set you up for when the average monthly unit sales are lower — and you will have set up an automated process to obtain all the warranty reimbursement to which you are entitled.

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