In Episode 23 (the “Michael Jordan episode,” as Gavin calls it), we shift gears from the shiny allure of new vehicles to the powerhouse that keeps many dealerships running—the used car business.
Used Cars Matter More Than You Think
While franchise dealers are often seen as synonymous with new car sales, used vehicles are the real unsung heroes. At McGrath, for every new vehicle sold, 2.5 to 3 used vehicles leave the lot. That’s not just a fluke—it reflects national trends, where 15.9 million new vehicles were sold in 2024, compared to an estimated 45–55 million pre-owned units.
Every used car sold runs through service, parts, detailing, and sometimes bodywork, involving nearly every department in the dealership. It’s not just a sale—it’s a full-team effort.
What Makes a McGrath Certified Vehicle?
About a decade ago, McGrath launched its Certified Pre-Owned program, adding major value and peace of mind for customers. Here’s what it includes:
- Eligibility: Under 7 model years old and less than 75,000 miles
- Coverage: 12-month/12,000-mile limited warranty (similar to new car bumper-to-bumper coverage)
- Extras:
- Free Carfax report
- 4-condition vehicle inspection
- 3-day/150-mile exchange policy
The goal? Deliver a like-new experience without the new car price.
Enter: Smart Buy
For vehicles that don’t meet the McGrath Certified criteria, the Smart Buy program steps in:
- Eligibility: Up to 10 years old and 125,000 miles
- Coverage: 3-month/3,000-mile powertrain warranty
- Inspection: 106-point condition check
Quality Without Guesswork
Each certified car undergoes an average of $1,600–$1,800 in reconditioning, depending on needs—from tires and brakes to filters and detailing. While they’re not made new, they are thoroughly restored for safety, reliability, and visual appeal.
Behind the Scenes: Sourcing & Logistics
With 1,400+ used cars in inventory and 900–1,000 sold monthly, McGrath can’t rely on trade-ins alone. Their buying team sources up to 400 vehicles monthly from online auctions, while also acquiring cars from consumers via platforms like Facebook Marketplace and McGrath’s own Dart system.
Rapid Recon software helps track and streamline reconditioning, aiming for cars to be lot-ready within five days—a crucial window for minimizing depreciation.
A Promise Backed by Performance
Whether it’s McGrath Certified or Smart Buy, every pre-owned vehicle is backed by a promise of quality and value. It’s not just about moving metal—it’s about trust, reputation, and long-term customer relationships.