The used car market has become a battleground for mainstream dealers, who are now resorting to unconventional tactics to attract cost-conscious buyers. One of these tactics involves selling cars with branded titles, which can be a red flag for potential buyers. But what exactly is a branded title, and why are dealers now using them to augment their new inventory? According to Automotive News, most mainstream dealerships have traditionally avoided stocking used vehicles with branded titles, as they can be a hassle to deal with and may result in liability issues. However, with the increasing demand for used cars and the corresponding rise in prices, dealers are now willing to take on the risk. They're using branded titles to sell cars that have been damaged and previously repaired, often with unknown mileage or a lemon law buyback in its history. But why are dealers doing this? The answer lies in ...
The used car market has become a battleground for mainstream dealers, who are now resorting to unconventional tactics to attract cost-conscious buyers. One of these tactics involves selling cars with branded titles, which can be a red flag for potential buyers. But what exactly is a branded title, and why are dealers now using them to augment their new inventory?
According to Automotive News, most mainstream dealerships have traditionally avoided stocking used vehicles with branded titles, as they can be a hassle to deal with and may result in liability issues. However, with the increasing demand for used cars and the corresponding rise in prices, dealers are now willing to take on the risk. They’re using branded titles to sell cars that have been damaged and previously repaired, often with unknown mileage or a lemon law buyback in its history.
But why are dealers doing this? The answer lies in the economics of the used car market. With average new-car transaction prices hovering around the $50,000 mark, many buyers are turning to the used market in search of “affordable” alternatives. However, the increase in demand has driven prices up, making it difficult for dealers to attract cost-conscious buyers. By selling cars with branded titles, dealers hope to tap into this demand and attract buyers who are willing to take on the risk.
However, this approach can be a double-edged sword. Cars with branded titles can be a nightmare for buyers, who may end up with a car that has been damaged or repaired multiple times. Additionally, the lack of transparency and disclosure can lead to buyer’s remorse and potential lawsuits.
As the old saying goes, caveat emptor – let the buyer beware. With the rise of branded titles in the used car market, it’s more important than ever for buyers to do their research and be aware of the potential risks involved.
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