GDPR in Dealerships and How to Avoid Fines
🚗 GDPR in Car Sales: What Data Do You Handle and How to Protect It?
Car dealerships and used car sales businesses have evolved significantly in recent years. What used to be a simple transaction now involves test drives, online sales platforms, customer tracking, financing, and increasingly connected vehicles.
But with this digital transformation comes great responsibility: protecting customer data and complying with the General Data Protection Regulation (GDPR). Failing to do so can be costly, both in fines and in lost customer trust.
If you sell cars, whether new or used, and handle customer data, this article is for you.
🛑 The Data You Handle Without Realizing It
Selling cars involves handling a vast amount of personal information, often more than dealerships realize.
– Buyer Information: Name, ID, address, financial history.
– Vehicle Data: License plates, maintenance history, ownership records.
– Customer Interactions: Calls, emails, dealership visits.
– Test Drive Records: Who drove the car, when, and how.
– Video Surveillance: Security cameras in waiting areas or test vehicles.
📌 Real Case: A dealership in Germany was fined in 2023 for using test drive data to send advertisements without consent. The customer never authorized their information to be used for marketing.
This raises the first question: Do you really need to store all this information? GDPR enforces the principle of data minimization, meaning you should only keep what is strictly necessary and for a justified period.
GDPR in Dealerships and How to Avoid Fines
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🚘 Connected Vehicles: The Challenge Ahead
Modern cars are not just machines—they are computers on wheels. Many new models include:
– Geolocation Systems: Tracking every movement of the vehicle.
– Remote Diagnostics: Sending information about the car’s status.
– Interior Cameras: Recording inside the cabin for security or assistance.
For dealerships, this presents a challenge. Who is responsible for these data? The manufacturer, the dealership, or both? Are customers properly informed about what is being collected?
🔴 Controversial Example: Tesla faced criticism in 2023 for its lack of transparency regarding its interior cameras. Many customers were unaware they could be recorded without their knowledge.
If you sell connected cars, it’s essential to clearly inform buyers about what data is collected and how they can manage their privacy settings.
🏢 Car Sales and GDPR: What Every Dealership Must Comply With
To comply with GDPR, dealerships and car sales businesses must ensure that customer data is handled securely and legally. Here are the most common mistakes and how to avoid them:
1️⃣ Requesting More Data Than Necessary
❌ A salesperson asks for a copy of an ID from every visitor at the dealership.
✅ ID should only be requested when absolutely necessary (e.g., signing a contract).
2️⃣ Not Informing Customers Properly
❌ A dealership shares buyer data with a financing company without consent.
✅ Customers must be clearly informed about which data will be shared and with whom.
3️⃣ Misusing Cookies on Online Sales Platforms
❌ A dealership’s website tracks users without valid consent.
✅ Implement cookie managers that allow customers to make an informed choice.
4️⃣ Storing Customer Data Indefinitely
❌ Keeping purchase and test drive records “just in case.”
✅ GDPR requires setting a time limit for data retention.
📌 Real Case: In 2022, a French automotive group was fined €500,000 for failing to clearly define responsibility for customer data between its headquarters and dealerships.
⚠️ Mistakes That Led to Million-Euro Fines
Data protection authorities have started imposing heavy fines on car industry businesses for GDPR violations. Here are some of the most recent cases:
💰 €1.2M Fine for a Dealership in Spain (2023)
– Reason: Mass email marketing without consent.
– Mistake: Purchased databases without verifying their origin.
💰 €3.5M Fine for Mercedes-Benz (2023)
– Reason: Tracking cookies without a clear option to reject them.
– Mistake: The cookie banner prioritized “Accept All” while hiding settings.
💰 €900K Fine for a Car Leasing Company in the Netherlands (2024)
– Reason: Stored copies of customer IDs on unencrypted servers.
– Mistake: Anyone with network access could view the documents.
In all these cases, the errors could have been avoided with proper privacy management and consent handling.
📢 Complying with GDPR Protects Your Business
For businesses selling new and used cars, GDPR is not just a legal requirement, it’s a way to build customer trust.
Buyers increasingly value privacy and transparency. Knowing that a dealership protects their data can be the deciding factor in choosing you over a competitor.
🔎 Does your business comply with GDPR? Implementing best practices today will help you avoid legal issues tomorrow.
GDPR in Dealerships and How to Avoid Fines
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