What's so good about a manufacturer's vehicle recall?

The words “manufacturer re call” can strike fear in the hearts of even the toughest dealers, but fear not, says a new survey commissioned by Carfax, a company that tracks vehicle histories.

Key survey findings indicate that notification of manufacturer recalls can actually increase profits for car dealerships.

The survey says that, of purchasers who had repairs on manufacturer recall items, more than one-third had additional non-recall repairs or maintenance work performed while having the recall item fixed.

Moreover, nearly 94% of those repairs were made at the dealerships opposed to independent shops.

Additionally, 96% of used-car buyers surveyed said that knowing about a recall wouldn't have stopped them from purchasing an affected pre-owned vehicle.

Based on comments from recent purchasers of vehicles which were subjects of manufacturer recalls, knowing about the recall didn't dissuade them from purchasing.

Rather it prompted them to follow up with the dealer and either confirm that the recall had been remedied or to schedule a time with the dealer to have the recall work completed.

One survey respondent says, “There were two recalls on our car. We still purchased the car knowing that either the recalls were already done or that we could easily get them taken care of by a dealer.”

The survey indicates that notification of the recall by the dealer can serve to build consumer trust and encourage return business.

Another respondent says, “I asked the dealer to verify that the recall work had been performed. He provided me with a thorough service history, which gave me peace of mind about the car.”

More good news for dealers came from car purchasers who were informed of manufacturer recall items and had them repaired by the dealership. These customers indicate they were 75% more likely to revisit that dealership in the future.