Auto Recalls Hit Dealership Pocketbooks

In a battle of legal and ethical concerns, new and used car dealers across the nation are grappling with a crisis of dead inventory. At the center of the problem lies millions of Honda cars with recalled airbags.

Used cars with open recalls may be sold legally, but industry leaders and the Federal Trade Commission are pushing for transparency. Customers need to be warned about open recalls, and that often shuts down the sale.

On lots across the country, dealers are looking for ways to store used cars that cannot be sold. At the same time, dealers need new inventory pumped in to keep sales numbers afloat.

For dealers who need to move dead inventory to storage lots, part of the solution will be a motorized car pusher. These pieces of equipment can maneuver vehicles to service centers, around lots, and onto trailers. The operator walks along and steers while a battery-powered motor propels the car pusher up to 3 miles per hour.

In the case of the Honda airbags, the manufacturer says parts will be available to address the huge 2.2-million vehicle recall by late summer 2016. Dealers with stock on their hands may want a solution to set affected vehicles aside.

Of course, there will be more major auto recalls. The head of AutoNation has pledged not to sell vehicles with recalls, and CarMax offers online info about recalls. Whether new regulation is created or not, it seems clear that used car dealerships are moving toward restricting sales of recalled vehicles.

For more info about a motorized car pusher to assist with transporting vehicles, contact DJ Products.