Auto Data Solutions experts have warned that poor customer data can create compliance issues for dealers and impact sales.

According to a new study, up to 44% of the vehicle data that dealers have is outdated or incorrect.

Auto Data Solutions’ team has urged dealers to check their database and commence the data cleaning process if needed.

Due to several factors such as moving to a new place, changing cars, getting married or death, customer data records can become out of date.

Failure to manage customer data could lead to a penalty of up to £17.5m or 4% of global turnover under the GPDR rules, which require dealers to take steps to keep data up to date or erase it if it has lapsed.

Auto Data Solutions director Jon Sheard said: “With larger dealers holding millions of records, the details will change by the second, and the quality and value of that data will decrease daily.

“Data sits at the heart of modern dealerships and fuels the sales effort. Therefore, it is essential that all records are up-to-date and accurate.

“The Royal Mail quote that 50% of an average business’ database will be out of date in two years. While we do not regularly see those kinds of numbers in dealerships, it is essential that a regular data cleanse is undertaken.”

Auto Data Solutions said it is working with dealer management services (DMS) providers to automate data cleansing.

Sheard added: “Data management needs to be a priority for the industry. Following an initial cleanse, the process can be automated to ensure that data is always up to date. Advanced technology can be used to update the database automatically.”