DETROIT - General Motors is remapping the way its U.S. dealers market and warranty used vehicles, shifting away from a long-standing dealer-level program and pushing retail operations into its national online platform, CarBravo.
The Detroit-based automaker said it will wind down the prior program that enabled dealerships to sell used cars with GM-backed warranties. Instead, Chevrolet, Buick and GMC dealers in the United States will be required to enroll their pre-owned vehicle operations under the CarBravo brand if they want to sell used GM vehicles with factory-backed warranties. The mandate takes effect in June. GM said Cadillac - its luxury brand - will continue to operate under the company’s traditional certified-pre-owned program.
Under the new structure, GM intends to increase the volume and variety of used vehicles funneled through its dealership network. The company said CarBravo will include non-GM models and allow older cars to be sold with factory-backed warranties - in some cases extending coverage to vehicles as old as 15 years. That contrasts with GM’s current certified-pre-owned programs, which are limited to GM vehicles and generally cover cars up to five years old.
The changes come amid a broader U.S. market where used-car demand has strengthened as affordability concerns have pushed average vehicle prices higher. GM noted that about 40 million used vehicles are sold each year in the United States, while roughly 16 million new vehicles have been sold annually in recent years.
For automakers, the used-vehicle channel can help stimulate new-vehicle sales by generating showroom traffic and facilitating trade-ins. "We know these customers that buy certified used vehicles, the propensity for them to come back and buy a new vehicle just increases," said John Fitzpatrick, CarBravo program leader.
The move also responds to competition from pure online sellers. The emergence of Carvana, which sells cars via the internet and delivers them without relying on traditional dealerships, has increased competitive pressure across the industry, said Jeremy Robb, chief economist at data provider Cox Automotive. Carvana, which launched in 2013, reported sales of 596,641 vehicles last year.
GM's own CarBravo service, launched in 2023, has recorded roughly 216,000 vehicle sales since it began. The company said CarBravo is moving inventory at a quicker pace than its broader certified-pre-owned program, despite the fact that fewer than one-quarter of GM’s roughly 3,500 U.S. dealerships currently sell their vehicles through CarBravo.
Dealers who already use CarBravo report tangible gains in resale activity. Andy Guelcher, president of Mohawk Chevrolet in upstate New York, said the online selling tool helped his dealership increase used-car sales by 52% over the past two years. "I’m talking to people that I’ve never spoken to before," he said.
What GM is changing
- Ending a longstanding dealer program that enabled sales of used vehicles with GM-backed warranties.
- Requiring Chevrolet, Buick and GMC dealers to sell used GM vehicles with factory-backed warranties via CarBravo starting in June.
- Maintaining Cadillac on the traditional certified-pre-owned track.
Market context
GM says the new approach will widen the set of vehicles eligible for factory-backed warranties - including non-GM models and older cars - and aims to capture more of the large U.S. used-vehicle market, which the company values at about 40 million annual sales versus approximately 16 million new-vehicle sales per year in recent years.