The recent Carfax investigation highlights a problem the automotive industry has struggled with for decades. It’s time to make it easier to identify dealers that are truly “fleet-minded.”

Back in the mid 1990s, I helped create the original dealer-focused commercial sales training programs for Ford and General Motors. These were off-premises, three-day live, comprehensive programs that trained dealers on all aspects of being truly fleet-minded for commercial sales, from sales and needs analysis, prospecting and marketing, maintenance, service and parts needs, and commercial finance and up-fitting.

The emphasis was to create a “one-stop shop” for commercial customers, outlining how their focus and needs are different than a retail consumer, and how truly fleet-minded dealers need to recognize this to be a volume player in the business.

The retail and fleet business has changed a lot in 30 years, with vehicles and technologies that are very, very different than what was offered decades ago.

But one thing hasn’t changed: S dealer really has to understand the differences between commercial customers and retail customers and make a long-term commitment to the special needs of small business to be effective.

The problem is, while few dealers outright reject fleet business, there are still too few that really are “fleet-minded,” and identifying those who are (as opposed to who say they are) is more difficult than ever, in part because those same training programs from the past have proliferated, and there is some OEM pressure for every dealer to sign up whether it’s just for “face value” or not. Those who make their living with their vehicles know this all too well.

The recent Carfax investigation, reported here by Auto Remarketing, I think, is an example of this issue. Carfax examined 437,583 taxi and rideshare vehicles across 16 major U.S. markets and found that 26.67% had at least one unfixed recall, compared with approximately 20% of vehicles nationally.

In New York City, nearly 39% had an open recall. In Seattle, it was 37.5%.

Is this really surprising, given the ongoing problem that we at DriveItAway, and many others, have in finding and identifying truly fleet-minded dealers that prioritize the special needs of recall and fleet work?

The problem is that the traditional dealership service model doesn’t always accommodate the needs of people who depend on their vehicles to earn a living.

Consider the typical consumer who receives a recall notice. They call their dealer and are told the next available appointment is in two weeks. Maybe they are offered a loaner car, maybe not, but arranging alternate transportation is usually not that big a deal.

For an Uber or Lyft driver, two weeks for an appointment and a few days in the shop means a substantial loss of income; downtime is more than an inconvenience in an industry where time is literally money.

Add the unavoidable consequence of the lack of OEM parts availability, as pointed out in the Carfax report, and it only exacerbates the problem.

Decades ago, there was no such thing as rideshare, but for any small commercial business, downtime means lost income, and reducing “downtime” was always a critical small business concern. Let’s face the fact that most dealers don’t adequately prioritize commercial fleet service, and others say they do but, indeed, fall short the second a more lucrative “cash job” comes in the door.

The problem is so bad that some commercial customers even forgo the extra warranty coverage of a manufacturer offered as an incentive, because they have experienced delays in any heavy repairs for a vehicle under warranty in a dealer shop that always prioritizes retail cash work.

Waiting months for a covered repair for a business that makes a living with the vehicle comes with a high cost. The manufacturer covers the repair, but who covers the lost income?

For example, Voyager Global Mobility manages one of the largest rideshare rental fleets in the US and always prioritizes recalls, especially all safety recalls, regardless of the downtime involved. However, according to executive vice president Jeremy Moskowitz, it isn’t that easy, especially in a lot of areas of the country.

As rideshare platforms continue to increase regulation and commercial insurance requirements, not even replacement vehicles are realistic options. In NYC, for example, where Carfax reports 39% unfixed recalls compared to 9% in Boston, rideshare drivers can only use the vehicle registered to them or their fleet.

If there is a safety recall that cannot be immediately fixed, it can take six to eight weeks to transfer the regulated permit to a new vehicle. It is not realistic to use a loaner vehicle. That is 15% of annual rideshare revenue gone if a dealership cannot quickly fix the recalled part.

When dealerships cannot immediately respond to recalls, fleets like Voyager Global Mobility need to choose between the safety of rideshare vehicles and critical company revenue (and they always choose safety).

Way back when I was a very fleet-minded dealer in the southern New Jersey area, a lot of my business came from northern New Jersey and New York City, presumably because a lot of major metro dealers didn’t care to service fleets.

Perhaps things haven’t changed.

As the Carfax study points out, there is a big opportunity for dealers, both in sales and service, that are truly fleet-minded. While commercial customers and recall and warranty work represent lower margins, it commensurately comes with higher volume and loyalty.

Looking at the gross and net numbers in aggregate at the end of the month, especially in these times when most stores are not operating at capacity, fleet-minded equals profits.

I would be the first one to say that a true dedication to fleet and commercial business is not, and should not be, for every dealer, but if we as commercial customers had a clear identification of those franchise dealers that truly were fleet-minded and wanted this volume business, outside of just experience and word of mouth, which we work from now, it would help all parties, including the drivers of vehicles identified as fleet, right down to your friendly ride-share driver and outstanding recall numbers would be reduced.

The Carfax investigation is an important reminder that we need to do a better job of getting recalls completed. Fleet operators, manufacturers, and dealers all have a role to play. But perhaps the broader lesson is one that those of us who have been in this business for decades already know. Some franchised dealers are fleet-minded. Others aren’t. It’s time we made it a whole lot easier to tell the difference

John Possumato, the founder and CEO of DriveItAway Holdings, is an automotive industry veteran and former award-winning franchise dealer. He is also an attorney and will be among the executives and experts scheduled to appear during Used Car Week that begins on Nov. 16 in San Diego.