Mercedes-Benz Turning to Used Cars Amid New-Car Sales Slump

Ryan Joseph Ramos June 21, 2013

Companies always have different strategies when it comes to difficult economic conditions. Mercedes-Benz, for one, is cashing in on growing demand for used cars as the new-car sales in Germany plummet.

This year, Germany’s sales figures for new cars are likely going to end up as the lowest since 1990. However, the pre-owned market is going strong as companies like Mercedes-Benz and even rival BMW step up their efforts to push used cars to consumers looking to save some money. This includes new offers for leases and quick loans in order to attract prospective buyers.

According to Daimler banking unit chief Franz Reiner, these pre-owned vehicles allow access to ‘the Mercedes-Benz world’, and that’s without the prohibitive price tag that a new car entails.

The market for used cars is big. For example, there were around 6.9 million used cars dealt last year, which is the highest figure in the last 10 years and is over double the number of new cars sold in the same year.

Mercedes-Benz promises the same level of customer care enjoyed by new-car owners. In the UK, for example, the Approved Used Car Programme of the automaker ensures that pre-owned vehicles are tested extensively before they’re sent back out to market.

In addition, getting certified used cars straight from the car manufacturers provide buyers with added security, as these pre-owned vehicles come with warranties. This offsets the price differential compared to buying used cars from individuals.

Source: Bloomberg