What Is A Buyback?

TOP 5 MYTHS ABOUT MANUFACTURER BUYBACKS

It’s important to know what you’re buying, especially when you are considering a pre-owned or repurchased vehicle. However, it can be difficult to make a smart purchasing decision when rumors cloud the facts. Here are some of the common misconceptions about manufacturer’s buybacks — and the real truth other dealers may not want you to know.

MYTH 1: ALL VEHICLES WITH BUYBACK TITLES ARE DEFECTIVE:

FACTS:
While it’s true that vehicles repurchased by a manufacturer may need repairs to correct problems, it’s not always the case. Vehicles are often repurchased as a gesture of goodwill to maintain a valued relationship with a loyal customer. In other instances, parts may not have been available in a timely manner to fix a minor problem and the customer may ask the manufacturer buy back the vehicle.

There are even cases where buyers will fabricate problems to get out of a vehicle if they know how to use the “Lemon Laws” to their advantage. And of course, there are times when a vehicle does have a legitimate mechanical problem that needs extra attention to correct. With that said, in many cases, it is safe to purchase a manufacture buyback car.

Regardless of the reason for a buyback, when a true problem does exist, the manufacturer not only wants to fix it, the company is legally required to fully correct any issues before the vehicle is offered for sale.

MYTH 2: THE PROBLEM MAY NOT BE FIXED:

FACTS:
Let’s face it — the last thing a manufacturer wants is to repurchase a vehicle. But when a repurchase is necessary, the manufacturer doesn’t want to risk its reputation by failing to address the original issue responsible for the buyback. You can be assured any repurchased vehicle is thoroughly inspected to ensure that the original problem has been corrected and that the vehicle is in premium condition before it is cleared for resale.

All repurchased vehicles are offered for sale with the balance of the original manufacturer’s warranty in effect. In addition, most vehicles also have a 12-month / 12,000-mile warranty coverage on the entire vehicle not just the part that was repaired under the buyback. With this assurance — and the option to extend that warranty coverage — the buyer can be sure that the vehicle meets or exceeds all manufacturer requirements.

MYTH 3: THE MANUFACTURER OF A BUYBACK WANTS TO GET RID OF THE CAR:

FACTS:
Hardly. Auto manufacturers — particularly those who produce luxury vehicles — value their reputation as a maker of vehicles people love to drive and own. That prestige is a huge part of the value attached to the models that they sell, and it’s an asset that auto manufacturers want to protect.

It is our experience that the manufacturer is going to be very certain that the repurchased vehicle meets all requirements for performance before it is offered for sale.

MYTH 4: ITS DIFFICULT TO RESELL A MANUFACTURER BUYBACK VEHICLE, ESPECIALLY WITH A BRANDED TITLE:

FACTS:
Not every state is required to note on the vehicle’s title if it was once repurchased. In those states that do brand the vehicle’s title with this information, you often get an even better price to compensate for this — and you save that much more! In other states that are not subject to these requirements, you will have a clean title. Keep in mind, as the public becomes more educated about the true value a repurchased vehicle offers, the buyback stigma will be less and less of an issue.

Instead, others will come to agree — as we do — that manufacturer buybacks offer knowledgeable car buyers a chance to own a premium vehicle at an affordable price. In fact, Van Horn Auto Group is so confident that this concern should not affect your buying decision that we offer to purchase your buyback vehicle from you at any time, providing that our required conditions are met.

Of course, when the time comes to sell or trade-in your repurchased vehicle, you should expect to receive a discounted price just as you enjoyed the benefit of a discounted price when you bought the vehicle. At Van Horn, we recognize the true value of your car and will always give fair market value based on miles and condition regardless of the title.

MYTH 5: OTHER DEALERS HAVE TOLD ME NEVER TO BUY A REPURCHASED VEHICLE:

FACTS:
Remember that automotive sales is a competitive business and not all dealers are able to offer repurchased vehicles for sale. As a result, some dealers simply don’t want you to know the real value that a repurchased vehicle can offer.

At Van Horn, we prefer to give you all the facts, offer the finest vehicles that represent the best values we can find — and then let you make the decision. That’s the Van Horn difference.