Why buy a pre-owned vehicle from a new car franchise dealer?

Back in the day, used car sales often carried a reputation that was, for the most part, negative.   There are all sorts of reasons why, some valid, some not.  Sure, Hollywood has portrayed the used car salesman in some very funny ways over the years, but that was strictly for our entertainment.  Not all used car dealers are “out to get you.”  

 While it’s true, that an independent used car dealer is not required by any manufacturer to purchase the latest tools for their shops, certify their technicians or maintain a level of satisfaction with their customer base (survey scores), there are still some reputable used car operators in the marketplace. 

How a vehicle is checked out prior to re-sale is key.  If an independent used car dealer doesn’t even have a service department, buyer beware – the risk is 100% on you.   Again, not to throw heat on an independent, many do sub out their service work to other service facilities prior to selling.  Unfortunately, you the buyer may have little or no recourse if you have no way of even knowing what was found and/or performed (service wise) on the car you want to buy. 

The new car franchise dealer, on the other hand, has a lot at stake when putting a pre-owned car for sale on their used car lot.  Obviously, safety and reputation are important but building life-long relationships are paramount.  Of course, that cannot happen without selling a safe product at a fair price, while maintaining a high level of customer satisfaction. 

New car dealers take their used car business very seriously, so seriously they actually get excited when one of their previous customers comes back to trade or upgrade the vehicle they sold them just a few years ago.  If a customer we already know comes to upgrade, we usually also know the service and maintenance history that makes their trade worth more to us than any other avenue of acquisition. 

Many things have to happen for a vehicle to pass our inspection and be put up for sale.  Our factory trained technicians have a check-list and are required to go down that entire list on every car.  The used car manager then decides if they want to perform the work suggested or simply sell the vehicle at auction or to an independent used car dealer.   If the vehicle does pass and/or work needed is within expected tolerance, the service is performed and the vehicle heads to detail, photography and then is uploaded to HewlettVW.com for sale.

As for pricing the product, most new car dealers have software that allows them to see the exact value of the car in the marketplace.  Once we determine a market value, the price is set and listed.  Our particular software also tells us where our price is in relation to everyone else’s. We price our used cars at 100% market value.  For example, if our car is priced at 98% of market, we should be a little cheaper than anyone else who has that exact car for sale.  If we’re 102%, the opposite is in place.  It becomes a little tricky when you get a vehicle with added accessories as not all added items are worth money to the next buyer.  

Certified Pre-Owned Volkswagen (CPO).  A certified pre-owned (CPO), is probably the best car for the money.  These cars are not only checked out and all the maintenance brought up to date, they’re performed by a factory trained technician who knows the car inside and out.  Some cars like a Jetta for example, are fairly common.  If I searched for a Jetta in Austin, my guess is 30 different dealers both new and used will have one.  A VW store who has one that’s certified, might and should cost a little extra.  Let’s face it, it’s worth more because it was reconditioned back to as close to new as possible and will come with a warranty because the factory is confident in that recondition process.  You don’t get that from an independent or an “other” franchise dealer.  Usually, financing options from the dealer are spectacular on CPO vehicles as well. 

Discounts. True Story. 

The automotive industry has surveyed customers countless times and asked “what do you hate most about the buying process?”  The answer is always the same, “the going back and forth part”.  We know that and have taken it to heart.  We have tried hard to eliminate the going back and forth part but it’s simply not that easy.   When we price a vehicle on the market (back to that 100% example above) the margin of profit is not always what some might think it is.  Remember, the customer who traded it thought our trade-in offer was valid and fair based on their research but somewhere in the middle, we have to recondition (service) the car, which costs money. 

Yes, we can justify our price within the marketplace on just about any car but customers still ask for a discount.  That’s okay because it’s how it’s been since the beginning of time.  We don’t always have room and sometimes we have to simply decline, but some offers are valid. Either way, we’ll try to accommodate anyway we can if possible. 

Bottom line, you can save money by purchasing a pre-owned vehicle.  Even though we’re a new car dealer, we love our used car operation.  Many times it’s the gateway to building a life-long relationship with a customer.  At Hewlett Volkswagen we typically have a large inventory of CPO’s on the lot at all times and nearly 200 used cars, SUVs and trucks when coupled with our sister store.  We invite you to check out our selection here.

Till next time,
John Chauvin,
General Manager, Hewlett Volkswagen