Common Myths Surrounding Manufacturer Buybacks

Myths about Manufacturer Buybacks

It's smart to know what you're buying, especially when you are considering a pre-owned luxury car or repurchased vehicle. It's tough to make a smart purchasing decision though, when you're armed more with misinformation than facts.

Here are some of what we have found to be the most common misconceptions about manufacturer's buybacks - and the real truth other dealers don't always want you to know.

MYTH 1: All buybacks are defective vehicles.

FACTS: While it's true that vehicles repurchased by a manufacturer may need repairs to correct problems, that isn't 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. Regardless of the reason for a buyback, when a true problem does exist, the manufacturer not only wants to fix it, the company is required by law to fully correct any issues before the vehicle is offered for sale.

MYTH 2: What if the problem isn't fixed? I don't want to end up with some one else's headache.

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 problem responsible for the buyback. You can be sure that 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 months/12,000 miles warranty coverage on the mechanical system or part that was repaired under the buyback. With this assurance - and the option to extend that warranty coverage further still - the buyer can be sure that his vehicle meets or exceeds all manufacturer requirements.

MYTH 3: The manufacturer of a buyback just 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: It would be hard to resell a manufacturer's buyback vehicle, especially if it is marked on the 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 of ten 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. Remember, too, that 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 a highly affordable price. In fact, World Imports USA 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.

MYTH 5: Other dealers have told me to never buy a repurchased vehicle. Why?

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 World Imports USA, 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 World Imports USA difference.



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Learn More About the CARFAX Process

Manufacturer Buyback

Most manufacturers offer a basic warranty for new vehicles. These warranties vary by manufacturer and typically last for a certain amount of time and/or a set number of miles. In cases where a customer is dissatisfied with a vehicle they have purchased, the manufacturer may offer or agree to reacquire the vehicle and give the customer a refund or a replacement vehicle. In many cases, the manufacturer is unable to verify the concern, but agrees to take the vehicle back in the interests of customer satisfaction. In other cases, a required part or software update may be unavailable. Buybacks always carry the balance of the factory warranty, and in some cases include an extended warranty on the repaired defect.

Additional Damage

Any other damage not covered in the above sections will fall under this category, including minor scratches and dents. Accident details that are documented without a formal police report are also labeled here.

Clean CARFAX / No Accidents

A clean CARFAX designation means the vehicle has no documented accident history. This doesn't necessarily mean a collision never occurred, but it does mean that an accident was never reported.

We recommend sticking with a current condition assessment ahead of this information for that fact alone.

Accident Damage

Police reports are usually the data CARFAX pulls to put together accident reports. A vehicle with documented accident damage may present a value opportunity, normally marked down for extra savings.

If this vehicle is in a healthy condition, you may find yourself interested, and for good reason.

Structural Damage

Any documented structural damage is assessed and documented during end-of-lease auctions for vehicles pulled back into the inventory pool. While "structural damage" may sound severe, it may sometimes indicate something as small as a minor fender-bender impact and slight damage to items such as door panels.

In this case, you may find yourself again enjoying a value-based price and strong return on investment.

Airbag Deployment

Airbags are typically deployed in case of an impact, even at lower speeds. Documentation for these occurrences should be included in your vehicle's CARFAX History Report.

Off Lease Only discloses "Previous Accident" on any car with an Air bag deployed on Carfax or Auto check, Severe damage on Carfax or Auto Check, Any Unibody or Structural announced car at any auction regardless of what Auto Check or Carfax says.

*Auction announcements of structural damage are in the form of words such as Airbag/ Unibody/ Frame/ Structural based on NAAA Auction Arbitration Rules. This simply means that the car has been in a previous accident and has sustained damage at one time. There is no distinction between a minor dent or a major accident when it comes to the use of these words. Due to Unibody construction, any vehicle that sustains any damage can be considered, even if the accident is as minor as an 1/8 inch-1 inch dent to the body or structure of the vehicle, or something much more serious.

ALL THE CARS WE SELL ARE FREE OF FLOOD, SALVAGE OR REBUILT HISTORY.All cars qualify for the Carfax Buyback Guarantee, unless otherwise noted.