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May 19th , 2024

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NISSAN HAS A CLEVER STRATEGY FOR COMBATING THE SHORTAGE OF USED CARS.

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The brand has developed a novel strategy to attract customers to dealerships.

Automakers all over the world have had a hard time keeping up with demand for new vehicles. For thousands of customers, frustrating delays have resulted from the ongoing shortage of chips and issues throughout the supply chain. Due to the sports car's delayed arrival, one of the most recent victims is the new Nissan Z. The used car market has also been affected by the difficulty in obtaining new vehicles; after the pandemic, used car prices reached all-time highs. Nissan, the maker of models like the well-liked Rogue, has joined other automakers in making pre-owned vehicles more appealing by expanding its certified pre-owned program, but this time for brands other than Nissan. Many people still choose to buy used cars. For non-Nissan models, Nissan's new certified pre-owned program will begin this fall. An 84-point inspection and a limited warranty with 6,000 miles and six months will be provided for the in-question vehicles. In contrast, Nissan-certified pre-owned models receive a seven-year/100,000-mile warranty and a 167-point inspection. Nonetheless, Nissan's new program for non-Nissan used cars provides buyers with additional security and may encourage them to visit Nissan dealerships. The Japanese manufacturer hopes that when the customer is ready to upgrade, they will be more likely to purchase a new or used Nissan. Dan Mohnke, Nissan's US vice president of eCommerce, told Automotive News, "We want to build connections with customers about the Nissan brand and the Nissan experience." New customers that the dealer wouldn't normally encounter are the biggest benefit.

In addition to increasing the brand's visibility, the new program will also generate revenue for the company through certification fees. In comparison to the numbers for 2020, dealerships sold approximately 2.75 million CPO vehicles in the previous year. For non-Ford models, Ford already offers certification and a limited warranty, and General Motors plans to follow suit later this year. Ryan Hall, executive manager at HGreg Nissan Kendall outside of Miami, stated, "I don't think Nissan would be going down this path if new car inventory was healthy." Due to the fact that our inventory of new cars has decreased by half, this is meant to maintain customer traffic.

The new Ariya crossover, Nissan's most exciting electric vehicle to date, was sadly delayed earlier this year due to global supply chain issues once more. It comes as no surprise that Nissan has launched its new CPO program in an effort to attract new customers in the interim. We anticipate that other manufacturers will follow Honda's lead and make purchasing a CPO vehicle more appealing as long as the supply chain crisis continues.

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