A guide to vehicle recalls for motor dealers
In 2005, the Driver and Vehicle Standards Agency (DVSA), responsible for the safety of vehicles on UK roads, introduced the General Product Safety Regulations to ensure that customers are protected from unsafe products.
These regulations set out guidance and best practices so that suppliers are aware of their responsibilities when selling products to customers. The legislation applies to all consumer products, including new and used vehicles. So, it's crucial for dealers to understand their responsibilities, and what they need to do with any vehicle recalls.
What does it mean for the motor trade?
Vehicle recalls are usually issued by the vehicle manufacturer, or the DVSA when there is a potential safety issue with a vehicle or one or more of its parts. This legislation means that dealers must take responsibility for any vehicle recalls on vehicles they have for sale and ensure that they are fixed before selling them to a customer.
It is illegal in the UK for dealers to sell a car for sale that has an outstanding recall!
This is an ongoing risk that dealers need to continually monitor, as previous owners of stock you buy may not have fixed any outstanding recalls, or new ones could’ve been issued. Not all recalls are safety-related, however, if a manufacturer has issued a recall that affects your stock, it is important to check and carry out any necessary work before putting the car up for sale.
How can you check your stock for vehicle recalls?
The UK government launched a website back in 2018 that allows anyone with a valid registration to check the current vehicle recall status of any vehicle. So, we advise incorporating this check into your car buying and preparation process.
If your dealership specialises in certain makes or models or sells higher volumes of specific cars, we recommend monitoring the DVSA and VOSA Databases to ensure you are kept in the loop.
Dealers can also advise customers to ensure that their DVLA details are up to date and correct, and where possible, register their ownership of the vehicle with the respected manufacturer. So, if the manufacturer announces any future recalls of the vehicle in question, the customer will be notified of the recall and will be able to arrange the repairs themselves.
What can you do about vehicle recalls?
领英推荐
Dealers can arrange for the affected vehicles to be repaired at a manufacturer-approved franchise dealership, as this ensures that the repairs are carried out according to the manufacturer's specifications and using genuine parts. Alternatively, dealers can also request the necessary parts from the manufacturer to fix the issue themselves.
Consequences of not checking for recalls
Dealers have been taken to court and fined for advertising vehicles for sale that had outstanding vehicle recalls that had not been rectified. In 2023, a dealer was found guilty of misleading customers by not addressing vehicle recall issues and failing to disclose the outstanding recalls at the point of sale. As a result, the dealership faced substantial fines amounting to thousands of pounds and suffered reputational damage due to the negative press coverage.
The benefits of checking for vehicle recalls
Checking for vehicle recalls should be part of your process. Not only will you stay on the right side of the law, but you will also protect your dealership from any reputational damage from legal proceedings and any potential fines.
Making vehicle recall checks part of your process isn’t just a regulatory obligation; it’s also a sign that you care about your customers and your business, and happy and safe customers are more likely to turn into repeat customers.
We strongly advise to keep yourself up to date on any changes or amendments to the existing regulation and legislation issued by the DVSA.
Partner with First Response Finance
If you don’t currently work with First Response Finance and would like to discuss how we can help you sell more cars to more customers, get in touch by visiting our website, giving us a call on 01156 711755 , or drop us a message on WhatsApp.
This article originally appeared on our dedicated dealersite.
Experienced Chief Executive | Strategic Leadership, Financial Management
2 个月I’m probably teaching grandma to suck eggs but, of course, it’s the lenders who are ultimately “selling” the vehicle to the customer and NOT the dealer. So THEY are the first port of call for safety recall redress… not the dealer. The transactions are (by law) that the lender buys the vehicle from the dealer and “sells” it to the customer (in theory, a customer should give the lender any deposit to buy the vehicle in full but, in practice, the dealer takes it on behalf of the lender and the lender provides the difference). It is, therefore, the Lender’s responsibility (for their own sake) to ensure each car is not subject to a safety recall and I would advise all lenders check the website you mention in your article. Of course, Lenders and dealers will have robust contracts and dealer warranties… but if a small dealer goes out of business or is threatened with a ￡m lawsuit for accidental death caused by such a safety issue… the lender is most likely the party to foot the bill. The same, as we know, is true for MQs.