GM Financial made $2 billion USD last year from re-selling used vehicles that were returned to the Detroit-based automaker through lease expirations and repossessions.
According to The Detroit News, GM reported $2 billion in profits from second-hand vehicle sales through its GM Financial arm in its recently published 2021 earnings report. This helped GM Financial grow its profits to $5 billion, up from $2.7 billion in 2020.
Inventory shortages brought on by the semiconductor chip shortage contributed to a 43 percent dip in GM vehicle sales in the fourth quarter of 2021, with the automaker selling 436,358 units in the three months from October through to December. This dip in new vehicle inventory was likely also a driving factor behind the success of its used vehicle sales, however, with more consumers turning to the used market amid rising prices for new cars, crossovers, trucks and SUVs.
GM is looking to expand its used car sales business, this year launching its new dedicated CarBravo platform. CarBravo is a used car shopping site that will provide users with access to a large inventory of second-hand vehicles in the U.S. CarBravo will encompass both GM vehicles and non-GM vehicles.
“CarBravo will give customers more choice and access to shop significantly expanded inventories of both the dealer and a national central stock of GM used vehicles,” GM executive vice president and president of GM North America, Steve Carlisle, said earlier this month. “Importantly, the program features will also be offered on non-GM used vehicles. CarBravo is designed to provide customers the convenience to shop how they want, where they want – online, at the dealership or both.”
Dealers can sign up for the CarBravo service now The consumer side of the business, meanwhile, is expected to launch this spring.