Although GM predicts the US sales of certified used vehicles will increase 5%, the automaker’s sales might be affected by a shortage of vehicles.
“We’re flat, ” said Larry Pryg, national manager of GM certified pre-owned vehicle operations. “We’re No. 2 in the segment.
GM expects to sell about 285,000 units by the end of this year, while Toyota, which is no.1 in certified used-vehicle sales, will sell around 320,000 units. GM’s certified used-vehicle sales are based on Chevrolet’s pickups and mid-sized vehicles, mainly the Chevy Silverado full-sized pickup and the Impala and Malibu. To qualify for certification the cars must be 5 years old, but due to the collapse in 2008-2009, GM doesn’t have too many 3-5-year old vehicles. Almost 70% of GM’s dealers are part of this program, a sharp contrast with almost 100% enrollment seen at some import luxury brands.
“We don’t require our dealers to be in it,” said Pryg, speaking to reporters and analysts during a conference call. “But those 70 percent of GM’s dealers cover 80 to 90 percent of our [new-vehicle] volume,” he said.
More and more customers are becoming aware of this program and analysts said they prefer to buy a used-vehicle for three main reasons: the cars are thoroughly inspected, they are offered a certified-vehicle warranty, and they can’t afford a new vehicle.