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Rising vehicle costs are pushing many buyers toward the used-car market, and established automakers are adapting by expanding their certified preowned programs to recapture those customers. The strategy blends online listings, dealer networks and warranty-backed offerings in an effort to turn price-conscious shoppers into new-car buyers.
Why dealers feel squeezed
Strong demand for used cars, combined with the rise of online retailers, has reshaped where consumers shop. Companies such as Carvana and CarMax have intensified competition, taking market share from traditional franchised dealers and wholesale channels.
GM aims to persuade used-car shoppers to choose new vehicles
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For dealerships, trade-ins present a choice: sell them at auction or recondition and retail them locally. Dealers typically earn more by reselling vehicles to retail buyers than by wholesaling them, a dynamic that has pushed manufacturers to bolster certified programs tied to their dealer networks.
GM’s CarBravo overhaul
General Motors has retooled its certified preowned offering into a national online portal called CarBravo, where Chevrolet, Buick and GMC dealers can list certified vehicles for buyers across the U.S. Cadillac keeps a separate program. GM says roughly 1,615 of its 3,700 dealers participate in CarBravo.
The program goes beyond GM brands: many cars entering showrooms as trade-ins—sometimes from other manufacturers—are being certified and sold through CarBravo instead of moving to wholesale auctions. John Fitzpatrick, senior manager of the CarBravo program, noted that “wholesaling doesn’t bring nearly the revenue that selling it to a new customer does.”
GM projects roughly 250,000 sales through CarBravo in 2026, though Fitzpatrick expects fewer than half of those will convert directly into new-vehicle purchases. Still, the company emphasizes the role of local dealers: shoppers who interact with a store can be steered toward new models, often after comparing monthly payments and warranties.
GM reports that about 38% of visitors who begin shopping for used cars through the program end up buying new. The automaker also highlights aftersales opportunities: warranty-backed used buyers frequently return for service, and the company can attach subscription products like OnStar or driver-assist features such as Super Cruise to generate recurring revenue.
Price and financing shape decisions
Sticker prices remain a factor but many buyers focus on monthly payments. New vehicles carry a higher average transaction price—around $50,000—while a three-year-old used car averaged about $30,000 as of September, according to Cox Automotive.
Longer loan terms on new cars can lower monthly payments. As Ivan Feinseth of Tigress Financial Partners put it, digital retail tools have transformed shopping but the auto sector was slow to adapt. He also noted that longer financing for new vehicles can make them more affordable month to month.
Edmunds data show the trend toward extended financing: in the third quarter, loans lasting 84 months reached a record level, with more than one in four new-car loans at that term.
Rivals expand certified offerings
GM is not alone. Ford runs the Ford Blue Advantage program and is targeting about 450,000 total certified sales in 2026—above GM’s stated goal—though Ford has not shared conversion rates to new-vehicle purchases.
Toyota told CNBC that roughly 40% of its used-car shoppers eventually buy new. Honda did not provide specific volumes, but American Honda’s vice president of automobile sales, Lance Woelfer, said conversions occur “probably every day at dealerships throughout the country.” He added that the certified designation helps establish an initial relationship with consumers.
Woelfer also highlighted aftersales value: customers who buy certified used vehicles return for service at a rate about 18% higher than buyers of non-certified used cars, and they are roughly 7–8% more likely to purchase a new vehicle from the brand later on.
Retail shift, long-term stakes
Manufacturers view certified programs as a bridge between e-commerce rivals and traditional franchised stores. The approach attempts to combine the convenience of online search with the reassurance of dealer-backed warranties and local service.
For dealers, the upside is twofold: higher gross on retailed trade-ins and an ongoing revenue stream from maintenance and subscription services when customers remain within the brand ecosystem. For automakers, turning used-car shoppers into loyal customers supports both vehicle sales and future software- and service-based revenue streams.
