GM's CarBravo Turns Used Car Shoppers Into New Buyers

About 38% of shoppers who arrive at GM's CarBravo used-car portal looking for a preowned vehicle end up buying a new one instead, according to the automaker. That conversion rate is the centerpiece of GM's bet that it can reclaim customers drifting toward online used-car retailers such as Carvana and CarMax — and steer them back into the more profitable new vehicle market.

Affordability pressure is pushing buyers out of showrooms. The average new vehicle transaction price stands near $50,000, while the average 3-year-old used car costs about $30,000 as of September, according to Cox Automotive. That $20,000 gap pushes many shoppers toward used inventory — and toward digital platforms that have outmaneuvered traditional dealers.

"The internet and technology and apps on our phone have changed every aspect of retail, and probably one of the slowest areas of retail to have adopted to online and digital shopping has been the auto industry," said Ivan Feinseth, partner, chief investment officer and director of research at Tigress Financial Partners.

How CarBravo works

GM has revamped its certified used vehicle program under the CarBravo name — an online portal where Chevrolet, Buick and GMC dealers list certified used vehicles for customers across the U.S. About 1,615 of GM's 3,700 dealers are enrolled. Cadillac is the only GM brand excluded; it runs its own program.

The twist: GM certifies vehicles made by other automakers, not just its own. Many arrive as trade-ins that dealers would otherwise send to wholesale auctions. "Wholesaling doesn't bring nearly the revenue that selling it to a new customer does," said John Fitzpatrick, senior manager of the CarBravo program.

GM plans roughly 250,000 CarBravo sales in 2026. Fitzpatrick does not expect even half of those to become new car sales. The conversion pitch, though, is simple arithmetic on monthly payments.

"You've shown the customer, you're going to pay $500 [per month] for this used F-150, but you may pay $510 or $515 for this new Chevy," Fitzpatrick said. "And now all of a sudden the customer says, yeah, maybe I can do that because I'd rather have that new vehicle than the used truck."

A shopper comparing used Chevrolet Silverados against Ford F-150s and Ram 1500s on the site may start with any brand. "The customer picks up the phone, but in the back of their mind, they maybe always have been a traditional, more new car customer," Fitzpatrick said.

Why monthly payments decide the sale

Analysts say customers weigh the monthly payment more than the sticker price. New cars often carry longer loan terms than used ones, which lowers the monthly cost. "On a 1- or 2-year-old car, you may be only stuck with a 3- or 4-year loan," Feinseth said. "On a new car, you can get a 5-year, 6-year loan."

The numbers back that up. The share of new car loans lasting 84 months hit a record in the third quarter — more than 1 in 4 loans, according to Edmunds. Cox Automotive, meanwhile, reports used car prices have risen in some affordable segments, and about three quarters of consumers express interest in certified cars.

The dealership economics

The program is drawing customers dealers have never met. About 50% of buyers GM has gained through CarBravo appear new to the brand — no record exists of them in the automaker's customer databases. About 70% had never visited the dealership where they ultimately bought.

"The goal is really to get that customer engaged with the store, give them the option of building a relationship with the dealer," Fitzpatrick said. "The dealer can really help the customer figure out what works for their budget."

The follow-on revenue is substantial. Customers with warranty-backed used cars return for service visits, which often account for about half of a dealership's profits. GM can also sell connected-vehicle subscriptions such as OnStar. "That is a big part of General Motors' business going forward, is to sell the software and subscription services like OnStar and eventually to the cars that are enabled with Super Cruise," Feinseth said, referring to GM's advanced driver-assistance system.

Can GM catch Ford?

GM is not alone. Ford's Blue Advantage program, which also certifies other manufacturers' vehicles, is on track for 450,000 total sales in 2026 — well above GM's 250,000 target. Ford did not specify how many of those buyers purchase new.

Toyota told CNBC that about 40% of its used car shoppers end up buying new. Honda declined specifics, but Lance Woelfer, American Honda's vice president of automobile sales, said conversions happen "probably every day at dealerships throughout the country." He said certified-preowned customers return for service at a rate about 18% higher than non-certified used car buyers, and later buy new at a rate 7% to 8% higher.

"It's about that first relationship that allows us to then have that customer loyalty for life," Woelfer said. "And that's where our focus is. We've been doing it a long time, and we've seen a lot of benefits from the certified business."

GM's 38% conversion claim comes from the company itself, without independent verification — and the 2026 volume target rests on dealers continuing to enroll. If affordability worsens, the program's real payoff may prove to be service revenue and OnStar subscriptions rather than new metal moving off the lot.