The truth about car recalls (hint: most are phony)

Once again, the auto industry is using “fear porn” to squeeze more profits out of us – with car recalls.

And I quote from this article:

A dealership in Washington D.C. just settled with the Federal Trade Commission for allegedly sending fake recall notices in the mail as a ploy to boost the dealer’s repair business. The dealer, Passport Automotive, sent over 21,000 “recall notice” postcards to Toyota and Nissan owners between 2015 and 2017. All of the letters were designed to resemble an official recall notice, and urged owners to bring their car in to the dealer for more information.

This article makes it seem like this is a rarity. But it is not. A lot of car dealerships send out phony recalls to drum up business for their service centers.

My connection in the auto biz confirms most recalls are nothing more than a scheme to “get under the hood” – the hood in the front of the car that is. In simple speak, it is a way for dealership repair shops to scare us into fixing our car – even when there is nothing to fix.

Sure. Some recalls are real. But I never worry about them. Most recalls are super minor. Dealerships will automatically make recall fixes when we bring our car in for the next scheduled maintenance.

This is why I LOVE car leasing. Since we are always driving new cars, we almost never have to worry about repairs, maintenance or phony car recalls.