Where do pre-owned vehicles in a new-car dealership come from?

When buying a pre-owned vehicle, many consumers want to know where the used car, truck or SUV came from. This is important as it will provide a glimpse into the vehicle’s past. If you can also know how the vehicle was maintained and its service history, all the better.

That’s why many consumers choose to shop for their next pre-owned vehicle at a new-car dealership. They feel better knowing that there is often a complete history report to go along with the vehicle, as well as often times an extended warranty or at least an inspection that was done on-site.

But where do new-car dealerships get their pre-owned inventory? Often, from their existing clients.

Trade-ins

Pre-owned vehicles on new-car dealership lots are often trade-ins that were handed over when a new vehicle was purchased. Because new-car dealerships then to worry about their reputation, they will often only keep trade-ins from their own brand, and from customers they know and trust. Moreover, dealerships often serviced the pre-owned vehicle they are selling ever since it was purchased new, and are therefore able to give you a detailed service history report.

Lease returns

Most dealerships have the option of buying back lease returns in order to sell as pre-owned vehicles. They will often do this for the same reason they keep a trade-in. They know the vehicle well, and they can vouch and prove its service history. This goes a long way in ensuring that their pre-owned vehicles are reliable and safe.

Thank you to Bruce GM Middleton for their help with this article.