Unless your an auto dealer, getting access to used-car auctions is very limited. But next month, General Motors (GM) will offer the American public access to buying cars from it’s “GM Factory Pre-Owned Collection.”
GM is opening up a inventory from its auction inventory to the genera public. These cars and trucks come from GM company cars, former rentals, and lease turn-ins. Brands included in these sales are Chevrolet, Buick, GMC, and Cadillac. When GM opens its new website, FactoryPreOwnedCollection.com, anyone can view the 30,000+ used GM vehicles nationwide.
The GM Factory Pre-Owned Collection allows you to search certified pre-owned cars and lets your participating dealer act as an intermediary by having the car shipped from one of 45 different auction locations. You can have the car or truck of your choice shipped to your local dealer without obligation to purchase it. The final price is negotiable, as are the shipping fees.
The cars you’ll find will be newer than most CPO inventory and have fewer miles. The GM Factory Pre-Owned Collection will offer vehicles with less that 37,000 miles, versus normal CPO inventory that can have up to 75,000 miles on them. GM’s standard CPO program applies: a one-year/12,000 mile extended warranty (two-year or 20,000 miles on a Cadillac), two-year/24,000 mile schedule maintenance which includes oil changes, tire rotations, inspections. It also includes 3 months of OnStar and SiriusXM, road side assistance and a loaner car during the extended warranty period. If you don’t like the car, turn it back in within 3 days and pick out another one.
I like this plan. It gives us regular people a chance to buy the cleanest, low mileage GM cars and trucks without paying a premium. We’ll have to see what buyers have to say about the pricing and process once the program begins in February. Expect a follow up after we hear back from some real buyers.