Why Dealerships Dislike Recalls (and Why They’re Wrong)

For many dealerships, recalls are seen as an unavoidable hassle, low-profit, high-effort, and a drain on valuable service resources. But this mindset is leaving money and customer retention on the table. Instead of viewing recalls as a necessary evil, dealerships should see them as an exclusive opportunity to re-engage lost customers, boost service revenue, and drive long-term loyalty. With the right approach, recalls can bring customers back into the dealership, create upsell opportunities, and even spark new vehicle sales. The problem isn’t the recall itself, it’s how dealerships manage them.

Dealers Hate Recall Appointments for Several Reasons:

1. Lower Profit Margins

• Recall repairs are covered by the manufacturer, meaning the dealership gets reimbursed at a fixed rate, often lower than their standard labor rates for customer-pay work.
• The reimbursement may not cover additional diagnostic time or incidental costs.

2. Parts Availability Issues

• Recalls often involve specific parts that may be on backorder, causing delays.
• If a customer schedules an appointment but the part isn’t available, it creates frustration and wasted service bay time.

3. Disruption to Service Department Efficiency

• Recall work tends to be repetitive and doesn't always match the skill level of high-performing technicians, reducing their earning potential.
• It can take up valuable service bay space that could be used for more profitable customer-pay repairs.

4. Customer Perception & Experience

• Customers may view recalls as a hassle and be reluctant to come in, making scheduling and follow-ups difficult.
• Some customers expect the recall to be done immediately, even if there are constraints like part availability or shop capacity.

5. No Upsell Opportunities (or Perceived Lack of Them)

• Some dealerships see recall customers as "one-and-done" visits with no clear path to additional sales.
• However, if handled properly, recalls can be an opportunity to inspect vehicles and upsell additional needed services.

6. Warranty Reimbursement Complexity

• Processing warranty claims for recalls requires strict documentation and compliance with manufacturer guidelines.
• If not submitted correctly, claims can be rejected, delaying payment or leading to lost revenue.

7. High Volume, Low Return

• Some large recalls generate a flood of customers, overloading the service department without adding much profit.
• If not managed efficiently, these appointments can bottleneck the shop and negatively impact customer satisfaction.

Traditional Recall Notifications via Mail Causes Frustrations

Typically, dealerships and OEMs notify customers about recalls via direct mail. While this method ensures broad outreach, it has several challenges that can negatively impact the recall completion process:

1. Slow Delivery & Low Engagement – Mail takes time to reach the customer, and many people ignore or discard recall notices, mistaking them for junk mail. This leads to low response rates and delayed recall completions.

2. Unpredictable Customer Timing – Since dealerships can’t control when customers respond to a mailed notice, they may show up unexpectedly, creating inefficiencies in scheduling and service bay utilization.

3. Parts Availability Issues – If a customer arrives for a recall repair and the necessary parts aren’t in stock, they must return at a later date. This adds friction to the process, leading to frustration, lost trust, and a higher likelihood that the repair won’t be completed.

4. Lost Revenue Opportunities – When customers visit for a recall, it presents an opportunity to identify and complete additional needed repairs. However, if parts aren’t available or scheduling isn’t managed efficiently, the dealership loses potential service revenue.

5. Operational Strain – Service departments must handle fluctuating demand without knowing when customers will come in. This unpredictability can lead to overbooked days, increased wait times, and dissatisfied customers.

A more effective approach is proactive, automated outreach using digital channels like SMS and email, which allow for appointment scheduling, real-time updates, and better inventory coordination, ensuring customers arrive when parts and service capacity are available.

Why Recalls Are a Hidden Goldmine for Dealerships

✅ Reach Customers Other Marketing Efforts Can’t
Recalls provide a unique legal opportunity to contact customers via text, email, and phone, even those who are on Do Not Call (DNC) lists or have opted out of previous marketing. This lets dealers re-engage with customers they otherwise couldn’t reach.

✅ Exclusive to Your Dealership
Manufacturers assign recall work to their dealership network, not independent repair shops. This means customers must come to you for the repair, giving your service department a captive audience and a chance to build loyalty.

✅ No Cost to the Customer = Higher Appointment Rates
Since recalls are covered by the manufacturer, customers have no financial barrier to bringing their vehicle in. This reduces objections and increases the likelihood of scheduling an appointment.

✅ A Safer, More Reliable Vehicle = A Happier Customer
Fixing recalls isn’t just about compliance, it’s about safety and reliability. When a customer sees their dealership prioritizing their well-being, it builds trust and enhances long-term retention.

✅ Brings Back Lost Customers
Many customers stop servicing at the dealership after their warranty expires. A recall brings them back, allowing you to reconnect and demonstrate why your service department should be their go-to choice.

✅ Upsell Opportunities When Done Right
A strong multi-point inspection process during a recall visit can uncover worn brakes, tire replacements, overdue maintenance, and other revenue-generating service needs. The key is training advisors to educate, not just sell.

✅ Trade-In & Upgrade Potential
Recall visits provide a prime opportunity for appraising vehicles and discussing trade-in options. Customers coming in for a recall may be in an aging vehicle, making them perfect candidates for a new purchase.

Don’t Let Recalls Be a Missed Opportunity

For too long, recalls have been seen as a burden rather than the profit-generating, customer-retention opportunity they truly are. When handled correctly, recalls bring customers back to your dealership, open the door for upsells, boost trade-in potential, and create long-term service relationships. Instead of viewing recalls as a loss, it’s time to leverage them as a strategic advantage.

How BizzyCar Helps Dealerships Make Recalls Profitable

BizzyCar’s Recall Management Platform helps dealerships streamline recall handling by automating outreach, optimizing scheduling, and increasing service revenue opportunities. By leveraging recalls to bring customers back into the dealership, service managers can turn these visits into opportunities for upsells and long-term retention.

BizzyCar makes it easy to streamline recall outreach, optimize scheduling, and maximize revenue from every recall visit. Are you ready to turn recalls into a profit center for your dealership?

🚗 Schedule a quick demo today and see how BizzyCar can help! Click here to book your demo.