Automakers Fighting Over the Used Car Market
With U.S. auto sales in decline, American automakers have turned their focus to a somewhat unusual niche.
Certified pre-owned vehicles.
In short, when they ain’t sellin’ new, try sellin’ used.
Chrysler announced in late June 2008 that it was teaming with eBay to list Chrysler, Jeep and Dodge certified pre-owned cars on the new eBay Motors’ Certified Pre-Owned Showroom.
Chrysler’s attempt to push more used cars is of interest, but equally noteworthy is eBay’s acknowledgement of the market.
The eBay Motors’ CPO Showroom is aimed at marketing franchised dealers’ certified used-vehicle inventory.
It claims 12 million monthly unique visitors, and more than 15,000 late-model, fully inspected and reconditioned Chrysler, Jeep and Dodge vehicles.
They come with factory-backed warranties, a free CARFAX vehicle history report, road-side assistance, rental car allowances, and other amenities.
Offering warranties, car histories, rental car assistance and the like has become commonplace for the large automakers, to keep their models on roadways to help maintain brand image while making a few extra dollars.
But as the new-car market dries up, American automakers are keen on growing their share of the used-car market.
They are tapping ways to expand their reach, such as engaging enormous online companies, and even figuring ways to hinder competition.
Big Brother Always Watching?
Earlier this year General Motors unveiled its UsedCarAmbush.com, which airs website video clips of what the company deems shady used car lot operators.
The intent is to attack sellers of non-certified pre-owned vehicles.
The site uses hidden camera clips to highlight the benefits of GM’s certified used cars. Such as:
5-year/100,000-mile powertrain limited warranty 3-month/3,000-mile new vehicle warranty extension 24/7 roadside assistance and courtesy transportation CARFAX...
