Affordability issues are driving many consumers away from new vehicles, leading them to opt for used cars instead. In response, automakers like GM are revamping their strategies to compete with online retailers such as Carvana and CarMax.
GM's CarBravo program allows dealers to list certified used vehicles online, expanding their reach and potentially converting used car shoppers into new car buyers. Currently, about 1,615 of GM's 3,700 dealers are enrolled in this program, which aims for 250,000 sales by 2026.
The program not only provides warranties and guarantees on certified used vehicles but also encourages customer engagement with local dealerships, which is vital for future sales.
Industry analysts note that while the average transaction price for new vehicles is around $50,000, many consumers focus on monthly payments rather than sticker prices, making new cars more appealing due to longer loan terms. GM's strategy is not unique; competitors like Ford and Toyota are also leveraging certified preowned programs to drive new vehicle sales.
This shift in approach highlights the importance of building customer relationships and loyalty in a rapidly evolving market