--- title: "Automakers Revamp Sales Strategies Amid Online Competition" url: https://noti.group/automakers-revamp-sales-strategies-amid-online-competition/ language: en publisher: "Noti Group" section: "Business" published: 2026-11-10T13:00:01.000Z updated: 2026-11-10T18:00:33.348Z id: 7287b263-0d13-44bf-9a22-02d885a437fc source: "CNBC https://www.cnbc.com/2026/11/10/gm-carbravo-used-car-shoppers.html" attribution: "Link to https://noti.group/automakers-revamp-sales-strategies-amid-online-competition/ and name Noti Group when you quote or summarize this story." --- # Automakers Revamp Sales Strategies Amid Online Competition The new vehicle market faces affordability challenges prompting buyers to opt for used cars instead of brand-new ones. The new vehicle market is facing affordability challenges that are prompting some buyers to opt for used cars instead of brand-new ones. As a result, automakers are exploring ways to compete with online retailers that have been gaining traction in the used car market. Automakers want to lure back customers who are increasingly turning to online platforms like Carvana and CarMax to buy their vehicles. These newer entrants have made the used car market more competitive for dealers and other traditional sellers, causing them to rethink their strategies. According to Ivan Feinseth, partner and chief investment officer at Tigress Financial Partners, "the internet and technology and apps on our phone have changed every aspect of retail", but the auto industry has been slow to adapt. This shift is forcing automakers to innovate and find new ways to sell vehicles. In response to this changing market landscape, General Motors is revamping its certified used vehicle program. The revamped program, now called CarBravo, allows Chevrolet, Buick and GMC dealers to list their certified used vehicles online and make them available nationwide. CarBravo essentially serves as an online portal for customers to browse and purchase certified used vehicles from participating GM dealerships across the United States. About 1,615 of General Motors' 3,700 dealerships are currently participating in its CarBravo program, a significant number but still less than half of the company's total dealership network. Interestingly, Cadillac is not part of this initiative, with its own separate certified used vehicle program. In the automotive industry, "certified" or "preowned" vehicles refer to used cars that have undergone thorough inspections and reconditioning, often accompanied by manufacturer-backed warranties and guarantees. This model has been adopted by many manufacturers, who see it as a way to increase customer trust in their pre-owned offerings. One of the unique features of GM's CarBravo program is its inclusion of certified vehicles from other manufacturers, not just those made by General Motors. According to John Fitzpatrick, senior manager of the CarBravo program, this often involves cars that have been traded in at dealerships and would otherwise be sold at wholesale auctions. Dealership managers like Fitzpatrick acknowledge that selling certified pre-owned vehicles to new customers is generally more profitable than wholesaling them to other retailers. The program has been driving more traffic into local dealerships, where purchases are typically finalized, giving GM an opportunity to convert a used car shopper into a new car buyer. When browsing for vehicles on the website, customers can compare different models and brands side by side, allowing them to weigh their options before making a decision. This comparison feature has been particularly useful in the full-size truck market, where buyers can view used trucks from various manufacturers, including Chevrolet, Ford, and Ram. Dealers are capitalizing on this opportunity to persuade customers to switch from buying used to purchasing new vehicles. According to Fitzpatrick, some customers initially looking for a used car may have always been inclined towards buying new, but didn't realize the benefits of doing so until presented with the option. The cost difference between a new and used vehicle can be a significant factor in this decision-making process. Dealers are highlighting the added value that comes with owning a brand-new vehicle, including warranties and lower maintenance costs, which may outweigh the initial savings of buying pre-owned. As of September, data from Cox Automotive shows that the average 3-year-old used car is selling for around $30,000, whereas the average transaction price of a new vehicle is approximately $50,000. Industry analysts point out that car buyers are more concerned with monthly payment costs than the initial sticker price of the vehicle. This is partly due to the fact that new cars often come with longer loan terms than used ones, allowing for lower monthly payments. As a result, consumers can opt for loans lasting 5 or even 6 years when purchasing a new car, as opposed to being stuck with a shorter loan term on a previously owned vehicle. According to data from Edmunds, the share of new car loans exceeding 84 months hit a record high in the third quarter, accounting for more than one-quarter of all new car loans. This trend suggests that buyers are increasingly prioritizing affordable monthly payments over other factors when making their purchasing decisions. The rise in used car prices in certain segments has also made certified vehicles more appealing to consumers. About three-quarters of shoppers express interest in these cars, which offer a level of assurance and quality control not always found in the used market. In an effort to build relationships with customers and encourage them to purchase new vehicles, dealerships are focusing on engaging with potential buyers early on. By doing so, they can provide personalized guidance and help consumers determine what works best for their budgets, ultimately increasing the chances of a sale. Dealerships can benefit significantly from customers who purchase warranty-backed used cars, as these customers often return for service visits that account for a substantial portion of dealership profits. In addition to providing warranty coverage and maintenance services, GM can also offer subscriptions to connected vehicle services such as OnStar, which offers safety, security, and navigation features. This is part of the company's strategy to sell software and subscription services, including its advanced driver-assistance system Super Cruise, to customers who purchase or lease vehicles equipped with these technologies. Other automakers are also exploring similar strategies through their certified preowned vehicle programs. Ford Motor, for instance, has launched its Ford Blue Advantage program, which certifies used vehicles from other manufacturers and aims to achieve 450,000 total sales in 2026. This represents a higher target than GM's goal of 250,000 sales. While the exact number of customers who purchase new vehicles after initially considering used cars is not specified for Ford or Honda, industry trends suggest that many consumers do end up buying new instead of opting for preowned vehicles. The interaction with potential customers is crucial in influencing their decision to buy new or used vehicles. According to industry experts, some consumers prefer buying used cars but appreciate the added confidence that comes with a certified preowned designation. These customers tend to return to dealerships for vehicle servicing at a rate 18% higher than those who purchase non-certified used cars. Moreover, they are also more likely to buy a new car in the future, with a rate of around 7-8% higher compared to others. By building strong relationships with customers through certified preowned programs, dealerships can foster long-term loyalty and drive repeat business, ultimately benefiting from the added revenue generated by these sales. --- Source: [CNBC](https://www.cnbc.com/2026/11/10/gm-carbravo-used-car-shoppers.html) Published by Noti Group: https://noti.group/automakers-revamp-sales-strategies-amid-online-competition/