USED CAR REMARKETING 1

Bora Selcen Duvan

Renault / B & LCV Segment Product Manager
Çakmak Mah. Balkan Cad. No:49 Umraniye Istanbul 34770
E-mail: bora.duvan@renault.com.tr

Dr. D. Selcen Ö. Aykaç

Ozyegin University / Post-Doc Research Fellow
Kusbakisi St. No: 2 Altunizade, Uskudar Istanbul 34662
E-mail: selcen.aykac@ozyegin.edu.tr

─Abstract ─

Car manufacturers and dealers have tended to exclude used cars from their businesses thinking that
the focus of dealers’ sales efforts should be on new cars, which carry higher price tags targeting
wealthier buyers. Dealers and original equipment manufacturers (OEMs) have been aiming to push
the new car inventory to the market with applicable incentives. However, used cars have started to
add more to dealers’ bottom lines than sales of higher-status new cars. Improved quality and
reliability of used cars have initiated a devoted customer base. As a result, manufacturers started to
consider the crucial role of used vehicle management in improving residual values, new car sales
and manufacturer brand equity.

This study investigates the used car business, particularly in the United States, Europe and Turkey.
The purpose of the study is to uncover the main drives of the used vehicle business and applicable
competition means for OEMs (Manufacturers) and dealers.

Key Words: Used cars, second hand cars, re-marketing

JEL Classification: M31

1
This paper is prepared from Bora Selcen Duvan’s MBA Graduation Project, which is completed in 2008 at the Istanbul
Bilgi University under the supervision of Dr. D. Selcen Ö. Aykaç as an advisor.