CarBravo: GM targets used car shoppers with cross-brand inventory

General Motors is leveraging its CarBravo platform to capture customers who prioritize monthly payments over sticker prices. The program allows Chevrolet, Buick, and GMC dealers to list certified preowned vehicles from other manufacturers on a single online portal. This strategy positions GM to compete with digital retailers like Carvana and CarMax, which have gained market share in the used car sector.

GM launched the initiative as new vehicle sales margins face pressure from affordability concerns. The company aims to net 250,000 sales through CarBravo in 2026. John Fitzpatrick, senior manager of the CarBravo program, stated that he does not expect half of those transactions to result in new car sales. However, GM reported that 38% of shoppers initially seeking used vehicles ultimately purchase new models.

The program currently includes 1,615 of GM's 3,700 dealers. Cadillac is excluded, as it maintains a separate certification program. Vehicles entering the system often arrive as trade-ins. Fitzpatrick noted that wholesaling these cars to auctions generates less revenue than selling them directly to consumers.

CarBravo differentiates itself by offering access to GM's dealership service network. Vehicles come with warranties based on age and mileage. The platform enables buyers to compare used models from different brands side by side. For example, a customer shopping for a truck can view a used Chevrolet Silverado alongside a used Ford F-150 and a Ram 1500.

Fitzpatrick explained that the final decision often happens during a conversation with a dealer. He cited an example where a customer considering a used F-150 with a $500 monthly payment was persuaded to buy a new Chevrolet for $510 or $515 per month. The lower cost per month, facilitated by longer loan terms, drives the conversion.

Cox Automotive data shows the average new vehicle price reached $50,000, while the average three-year-old used car cost $30,000 as of September. Edmunds reported that the share of new car loans lasting 84 months hit a record high in the third quarter. New vehicles offer financing terms up to five or six years, whereas used cars typically limit borrowers to three or four years.

GM reported that 50% of buyers acquired through CarBravo are new to the brand. Additionally, 70% of those customers had never visited the dealership where they made the purchase. The company views the initial interaction as a critical step in building long-term relationships and service revenue.