Chevy Bolt EV Forum banner
1 - 20 of 49 Posts

Registered
Joined
5,704 Posts
Buy the dip. 馃榾
 
  • Like
Reactions: RoadTripBiker

Registered
Joined
1,089 Posts
Wow, what a strange story. I am not sure I am buying what they are selling. Dealers don't get much profit from a buyback, and GM is already producing batteries for the recall. I foresee a few dealers out there with some REALLY high used Bolt inventory.
 

Registered
Joined
854 Posts
Wow, what a strange story. I am not sure I am buying what they are selling.
It is weird...
I mean, I suppose you could look at it as a low risk situation.
If you can buy low now, one of two things are likely to happen.
1: The used Bolt get's new batteries (or re-certified to be safe, etc) and it's resale goes up...
2: GM buys it back...
I think the first option is likely to make them more money. But perhaps they are looking at it as a lower risk investment.
Especially if they can get nervous owners to sell low...
 

Registered
Joined
56 Posts
Have a lot of respect for reputable dealers.

They are entrepreneurs, on their own in a cut throat business.

Guessing some have figured out how to make a buck out of this.

Maybe some are betting Bolt's with new batteries installed by their service departments, (on a separate P&L from the sales department), after shuffling through the buyback program, will increase both cash accounts, as by then Bolt's with new batteries will be an incredible bargain compared to a new EV?

Carmax was offering a low miles 2017 for $20,xxx. Enhance that car with new batteries, (worth how much?), and what is it worth then when prices of used cars altogether, and all new cars, are already in hyperinflation territory?

:)
 

Registered
Joined
25 Posts
I read that story twice, and still not sure where they theorized where the money was to be made. The anonymous quote also is confusing about why a dealer would buy it, so that GM could buy them back cheaper. Why would the dealer want to get in the middle of that for GM to save money?
Were they implying GM would buy them back from the dealer for more than what the dealer bought it back from a customer ?

Does someone else have better insight on where the money is to be made/saved ?
If a dealer would then have to hold them on their lot, their money is tied up for months waiting for a buyback or being able to be sold again. And that's taking a chance that this makes sense, and the money is there to be made.

Examples (not necessarily the actual values that these might be worth, just an example of where to make a profit) :

Dealer buys 2017 Bolt with 80,000 miles for say $10K, GM replaces the entire battery with longer range and gives new warranty on it, so car is now worth $20K. Dealer makes a profit from selling to customer.

Dealer buys 2017 Bolt with 100,000 miles for say $8K, GM offers to buy it back from dealer for $10K, which is cheaper than the $12K cost to GM to replace the entire battery. Dealer makes a profit from GM.

Dealer buys a 2020 Bolt at the now depressed used car price of $22K since it has the suspect battery, GM replaces it, and dealer makes a profit when the car is sold to a customer with repaired battery for $26K.


Is that what this article implies ? I'm not doubting anything, just trying to figure out where someone expects to make money.

And why wouldn't GM just do the buyback themselves if there's some money to save/make ?
Is the point that this would be cars that GM has already turned down a buyback request, and the dealer wants to swoop in and offer a low price since the customer knows GM won't buy it back ?
 

Registered
Joined
854 Posts
And why wouldn't GM just do the buyback themselves if there's some money to save/make ?
GM is doing buybacks...
But selling used cars isn't their thing generally. That's more for dealers...
I think GM is more concerned with getting this addressed and behind them, not a small amount of possible profit on a used car deal.
 

Super Moderator
2022 Bolt EUV Premier
Joined
231 Posts
Since mine is so new, it's highly unlikely anyone would make me a worthwhile offer. I'd be willing to listen, but it ain't going to happen.
 

Registered
Joined
25 Posts
GM is doing buybacks...
But selling used cars isn't their thing generally. That's more for dealers...
I think GM is more concerned with getting this addressed and behind them, not a small amount of possible profit on a used car deal.
Agree with you 100% there.

But the anonymous quote implied the dealers were buying them on behalf of GM, that it would be cheaper for GM that way.
The anonymous quote said the dealers were saving GM money.

鈥淭hey [GM] are already going to pay half the value of the car with the new battery. Buybacks will be way cheaper for them.


That's where I got confused.
So the dealer buys them back cheaper than GM would have to pay in a buyback ?
So GM avoids having to do a mandated buyback if they can get them out of customer hands without having to touch them ? But they still have to pay to fix them.
Then the dealer makes the profit on a resale after fixed ?

It's that implied interaction of dealers saving GM money, but it's really just about the dealers making profit. And the side benefit to GM is they might save money ?

It just seems like the article implies one motivation (incorrectly), it's not about saving money, it's about making money
 

Registered
Joined
25 Posts
I believe the dealers have to pay to get a technician trained to repair the Bolts, so they can become a certified dealership selling Bolts.

GM is going to pay the labor costs for the battery repairs.
Since the Bolts have almost no maintenance, and have much less things to break, the trained technicians aren't working with Bolts 100% of the time.
So the dealer paid for training that they are not fully utilizing.

But if they buy up 20 Bolts, they have a month of battery swap out work for their trained technician, and GM pays the labor bill.
Another motivator for the dealer to buy the cars back, get their money back for what they paid for training.
 

Registered
Joined
2,948 Posts
Does someone else have better insight on where the money is to be made/saved ?
I wonder if it's as simple as the dealers are getting paid by GM for storing the vehicles they are not allowed to sell. They could be collecting storage fees for a long time.
 

Registered
Joined
259 Posts
1: The used Bolt get's new batteries (or re-certified to be safe, etc) and it's resale goes up...
Not only does the resale go up, it may even sell as high as MSRP when it was new due to the car market being bonkers currently... And will the new EV tax rebate apply to these?
 

Registered
Joined
854 Posts
And will the new EV tax rebate apply to these?
I would doubt that part..
Possibly if the previous owner never claimed a rebate (as they didn't have them anymore)...
But I would think the wording in a new rebate deal will probably list it as current model year and forward...
 

Registered
Joined
5,704 Posts
... maybe getting ready for the $2.5K used EV rebate to come online. :)
 

Registered
2020
Joined
2,077 Posts
This almost sounds like one of those investments where you hope to make money while everyone else loses money.

But then the Bad News Bears won the second place trophy and the threw it at Tesla, I mean the Yankees...
 

Registered
2020 Bolt Premier
Joined
33 Posts
Since mine is so new, it's highly unlikely anyone would make me a worthwhile offer. I'd be willing to listen, but it ain't going to happen.
My 2020 Premier I bought 6 months ago with less than 2k miles has offers from CarMax and Vroom this week that are for thousands more than I paid for it. Only problem is there isn't anything like the Ioniq5 readily available to replace it with.
 

Registered
Joined
216 Posts
My 2020 Premier I bought 6 months ago with less than 2k miles has offers from CarMax and Vroom this week that are for thousands more than I paid for it. Only problem is there isn't anything like the Ioniq5 readily available to replace it with.
This. What good is a buyback or great trade in if the prize we win is an opportunity to a supply-limited EV subset of already crazy car market.
 
1 - 20 of 49 Posts
Top