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How GM is trying to talk used car shoppers into buying new vehicles
CNBC • • business
Key Points:
- General Motors has revamped its certified used vehicle program under the CarBravo name, creating an online portal where Chevrolet, Buick, and GMC dealers can list certified used cars nationwide, excluding Cadillac which has its own program.
- CarBravo certifies not only GM vehicles but also used cars from other automakers, aiming to increase revenue by selling trade-in vehicles directly to customers rather than wholesaling them.
- The program drives more traffic to local dealerships, with about 38% of used car shoppers converting to new car buyers, leveraging competitive monthly payment options and longer loan terms on new vehicles.
- GM emphasizes building customer relationships through CarBravo, noting that around half of the buyers are new to the brand and 70% had never visited the dealership before, enhancing opportunities for service visits and subscription sales.
- Certified used cars come with warranties and access to GM’s dealership network for service, supporting dealer profitability and enabling GM to promote software and subscription services like OnStar and Super Cruise.
