4 Min ReadSeptember 4, 2025

Converting Used Car Buyers to New

Converting Used Car Buyers to New.

It happens every day: A customer shows up on your lot with a saved listing for a specific pre-owned vehicle. Armed with financial advice from podcasts, financial gurus and well-meaning friends and family, they’re convinced that buying pre-owned is the only smart move. But once they see the vehicle in person or take it for a test drive, something’s off. Maybe the interior shows more wear than the photos suggested or the ride isn’t smooth. Today’s used car prices may also add to that hesitation, especially on a pristine used car. 

Suddenly, the car they had tunnel vision for doesn't meet expectations. And chances are, you don’t have another close match on your pre-owned lot that will satisfy their original criteria. 

However, their goal — getting a vehicle at a specific price point — might be better achieved by looking at new inventory. Here are three truths dealers can rely on to help buyers consider a new versus a used car:

1. The Numbers Tell a Different Story, Sometimes

Most buyers who opt for pre-owned vehicles do so for budgetary reasons. But when financing enters the equation — and in 2023, 80% of new car buyers and nearly 30% of pre-owned buyers financed their purchase — it may be more complex than the price on the window sticker.

Even buyers with top-tier credit scores typically pay more to finance a pre-owned car than a new one. The difference can be one-and-a-half percentage points at best and more than five at worst.

Let’s look at real numbers: A new compact crossover runs just under $37,000. A one- or two-year-old pre-owned example with 30,000 miles or less averages around $34,000. With a 36-month loan and the current average interest rates: 

  • A super prime borrower would save less than $2,500 on the pre-owned example 
  • A prime borrower saves less than $2,000 
  • A nonprime borrower saves less than $1,200

These equations don’t consider any special financing offers or incentives. Some automakers currently have special finance rates that look more like those from 2020 than 2025, with a few even offering 0% interest.

Of course, this calculation differs based on the specific car, budget and other factors, but the lesson is that a lower sticker price doesn't always translate to as much savings as anticipated. Customers who dismiss new vehicles may be surprised by today's market reality. 

2. New Vehicle Inventory Creates More Options

Knowing they may not save much on used, another benefit of going new may entice them. Your new vehicle lot is likely full of options to fit their needs. If their pre-owned pick feels a little too worn, there's likely something across the lot that will fit the bill. 

Customers who limit themselves to only buying pre-owned vehicles choose from only a handful of vehicles that may or may not actually meet their preferences. Especially if they’re shopping a specific brand. 

The new lot may have the exact vehicle they were looking for used but even if they have to step down in class for a new purchase the options might be enticing. Three years can be a generational change from that used example to a new one. That smaller crossover might have more technology, sharper styling or features that weren’t available on the used option. 

3. Used Vehicle Reliability and Hidden Costs

One upside to buying a new vehicle is peace of mind. As vehicles age and accumulate miles on the odometer, they require more maintenance and are less likely to remain in driving condition without additional investment. 

Most manufacturers recommend a vehicle's first major maintenance be around 60,000 miles. From fluid flushes to brakes and tires, the costs add up quickly between 60,000 and 100,000 miles. While your dealership's inspection and reconditioning process helps ensure pre-owned vehicles are road-ready, it's worth helping customers understand the natural maintenance timeline ahead. Knowing they could face a maintenance expense in 10,000 to 15,000 miles that eats up the cost savings from buying pre-owned helps inform their decision and sets proper expectations. 

Most of the pre-owned examples we referred to earlier were already more than a third of the way to that first major maintenance milestone. Additionally, many were within a year of losing basic warranty coverage and only had three years of powertrain coverage left. 

A new vehicle, in contrast, gives customers years before they need to worry about major maintenance milestones and likely half a decade of warranty protection to match. 

What This Means for Dealers

When customers walk in convinced that a pre-owned vehicle is the only smart financial move, they’re often working with outdated or generalized information. The market constantly changes, and those financial “rules” don’t account for current inventory levels, financing options or the real total cost of ownership. 

Understanding these market realities can help pivot conversations when customers are disappointed with the pre-owned vehicle they had their sights set on. Sometimes, the best solution to a pre-owned car objection is helping them see the complete picture of what’s available today. Someone who came in for that 2023 SUV might discover that for nearly the same monthly payment, they can drive off the lot in a 2025 model with full warranty coverage, their choice of color and features, and years before their first major maintenance expense. 

That’s not sales pressure. It’s providing a choice to the consumer. 

Share This

CDK Global
By CDK Global
Staff

Recent Insights

Car Buyer Rush Leaves Mixed Results at the Dealership

Car Buyer Rush Leaves Mixed Results at the Dealership

Car dealers are seeing a return to normal in terms of how buyers are finding the purchase process easy but...
2 Min ReadSep 2David Thomas
How Machine Learning Helps Dealerships Price and Manage Inventory.

How Machine Learning Helps Dealerships Price and Manage Inventory

Over half of dealers struggle to price used vehicles with confidence, and 62% say pricing prevents them from achieving financial...
3 Min ReadAug 28CDK Global
How Dealership Tech Training Improves Vehicle Delivery Experience and Customer Satisfaction.

How Dealership Tech Training Improves Vehicle Delivery Experience and Customer Satisfaction

Vehicle delivery isn't the end of the purchase process; it's the beginning of ownership, and it's essential that this journey...
4 Min ReadAug 26CDK Global
Are Dealers Moving to Where the Car Sales Are?

Are Dealers Moving to Where the Car Sales Are?

As we approach the midpoint of the 2020s, the U.S. auto retail landscape looks markedly different from just five years...
3 Min ReadAug 21CDK Global
Consultants Help Dealers Identify Improvements  to Increase Efficiency and Profit

Consultants Help Dealers Identify Improvements To Increase Efficiency and Profit

There is no denying the significant investment car dealers make with the software that runs their stores. But most dealerships...
4 Min ReadAug 19CDK Global
Leasing’s New Life as Monthly Payments Get Squeezed.

Leasing's New Life as Monthly Payments Get Squeezed

Leasing isn’t new. But as the market tightens and sale prices and MSRPs begin to rise there is renewed interest...
3 Min ReadAug 14CDK Global
C D K Research Uncovers the Truth About E V Ownership in 2025.

CDK Research Uncovers the Truth About EV Ownership in 2025

Electric vehicles have been a hot topic in the industry for nearly a decade. Today, the end of EV incentives...
2 Min ReadAug 7CDK Global
Four Requirements for Modern Dealer Appraisal Software in 2025.

4 Requirements for Modern Dealer Appraisal Software in 2025

Appraisals are an essential step in dealership processes. Even in today’s market where many dealers are offering top dollar for...
4 Min ReadAug 5CDK Global
Car Buying Process Rebounds in July

Car-Buying Process Rebounds in July

June saw the biggest drop and lowest score in the history of our Ease of Purchase scorecard. Luckily, there was...
3 Min ReadAug 4David Thomas
Three Ways Dealers Use Automotive Inventory Management Software.

3 Ways Dealers Use Automotive Inventory Management Software

Not too long ago, CDK conducted an informal survey of dealerships to see what inventory concerns plague them most. Some...
4 Min ReadJul 30CDK Global