Abstract
Car manufacturers and dealers have tended to exclude used cars from their businesses thinking that the focus of dealers’ sales efforts should be on new cars, which carry higher price tags targeting wealthier buyers. Dealers and original equipment manufacturers (OEMs) have been aiming to push the new car inventory to the market with applicable incentives. However, used cars have started to add more to dealers’ bottom lines than sales of higher-status new cars. Improved quality and reliability of used cars have initiated a devoted customer base. As a result, manufacturers started to consider the crucial role of used vehicle management in improving residual values, new car sales and manufacturer brand equity. This study investigates the used car business, particularly in the United States, Europe and Turkey. The purpose of the study is to uncover the main drives of the used vehicle business and applicable competition means for OEMs (Manufacturers) and dealers.