When used vehicle marketplace CarLotz receives a vehicle to sell, it does the inspections and reconditioning you’d expect any car dealer to do. Beyond that, the company takes an extra step — it deletes the vehicle owner’s personal data that may be stored in the infotainment system and other electronic modules.
A driver’s location history, phone records, text messages, garage door codes and other information may be stored in a vehicle after they’ve connected their smartphone to it or just driven a vehicle that’s equipped with GPS or telematics. This information can be deleted, but not all vehicle owners know how to do that.
“I think it is certainly not lost on anyone that privacy is important today,” CarLotz Chief Operating Officer John Foley told PYMNTS. “I don’t know that a lot of people necessarily understand how much information a vehicle can collect and store.”
88% of Used Cars for Sale Retain Previous Owners’ Data
Eighty-eight percent of the used cars at dealerships contain the previous owner’s personal data, according to an audit conducted by Privacy4Cars, a company that creates privacy and compliance solutions for vehicles.
Read more: What Happens to the Personal Data in a Connected Car When the Car Is Sold?
CarLotz announced in January that it had partnered with Privacy4Cars to remove the personal information of those who sell or consign their vehicles. It had been testing the company’s software since September 2020 and integrated it into the vehicle intake process that also includes cosmetic and mechanical condition reports.
The Privacy4Cars software walks the user through the vehicle-specific steps that are required to wipe the information from the car. CarLotz noted that with all the vehicle makes and models that are on the road, there are tens of thousands of different procedures required to remove data.
Some Customers Not Aware of Capabilities of ‘Computers on Wheels’
Foley said he’s been in the business long enough to remember the time when cars were not the “computers on wheels” storing as much information as they do today. Many people still don’t realize what today’s cars can do, so they give the car access to their phone and then trade in the car or return it to a rental site.
At the same time, because CarLotz is a consignment-to-retail used vehicle marketplace that sources used vehicles from both corporations and individuals, Foley has talked with buyers and sellers who are aware that vehicles have this capability to capture data.
“They want to know how it can be removed because, as quickly as they can pair their phone and add their information, they’re not as savvy as to how to remove it,” Foley said. “So, they need guidance in getting there.”
Protecting Privacy of Sellers and Buyers
Foley said he has found that both sellers and buyers appreciate knowing that personal data has been deleted. Sellers, especially the larger corporate accounts, think they have some responsibility for making sure that this is done. Buyers have greater confidence in sharing their own information with a company that has taken care to protect the personal information of the previous owner of the car.
To show buyers and sellers that the service it offers includes removing personal information from vehicles, CarLotz plans to start using a visual icon. The icon has not yet been implemented, but it may be included on window stickers, paperwork and online listings.
“I think you’ll find that most dealers are doing all the right things to recondition their vehicles and price them competitively in the market, so, after that, what differentiates you and your offering from everyone else?” Foley said. “I think one of the things that helps to set us apart is that, on top of all those other things, we’ve taken the extra step to protect the privacy of the seller, and we’re giving buyers the confidence that we’re doing the same with their personal information.”
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