What is a manufacturers buyback?
A manufacturer buyback is a vehicle the manufacturer has repurchased from the consumer due to a complaint. Usually this is a simple repair covered under a recall or the original warranty. If a necessary part is on backorder, it can result in the vehicle being out of service for a long period and the manufacturer repurchases it. Sometimes a technician misdiagnoses a problem, and the vehicle goes back to service for the same complaint. Other times there is no problem whatsoever. Some customers return a vehicle to the manufacturer because they can receive more money than they could by trading it in. Regardless of the reason, the manufacturer must inspect, and make any necessary complaint related repairs to each vehicle. The original US warranty remains and goes with the vehicle to the next owner. Also, the manufacturer usually provides an additional one year limited warranty on any related issues. Many of these vehicles originate in California due to that state’s consumer friendly buyback lemon laws, which unlike most states cover both new and used vehicle purchases.
What about the Carfax and title?
Vehicles that are repurchased by the manufacturer pursuant to state lemon laws are then titled in the manufacturer’s name. There is usually a notation or brand on the title that reads “manufacturer buyback”, “lemon law buyback”, or something similar. Carfax history report notes a buyback the following way: “ Branded title: Manufacturer Buyback/Lemon- Vehicle reacquired by the manufacturer pursuant to applicable state consumer warranty laws or to promote customer satisfaction.” These are NOT salvage or rebuilt titles. Manufacturer buybacks retain a manufacturer’s warranty and usually an additional warranty on buyback related repairs.
How is the long term value affected?
A vehicle is a depreciating asset. The longer you own it, the less it is worth. However, the longer you keep it the more you will be worth. This is not something most car dealers tell you, but IQautos wants you to know the facts. Consumer advocate Clark Howard knows the long term impact of making wise car buying decisions. In his book Living Large in Lean Times he urges buyers to keep a used car for 4 years. Alone this has been estimated to allow a person to save enough money to retire an average of 5 years early.
Like any pre-owned automobile purchase, the longer you keep a buyback the less impact it has on its value. It will always be worth somewhat less than a non buyback, but your total cost of ownership will be less because of the money saved at purchase.
Who shouldn’t purchase a buyback?
Anyone who doesn’t strive to save money should NOT purchase a buyback. We have customers ranging from recent college grads, to extremely wealthy entrepreneurs, who have purchased buybacks from us. If saving money is not important to you, we suggest you buy a new car. However, before you order that new vehicle, consider we can usually offer a one year old BMW 7 series with low miles and factory warranty for about $50,000 less than a new one. You decide.
Who should consider one?
Anyone who appreciates value should consider a buyback. Price is what you pay, and value is what you receive for your money. A person who chooses a buyback, gets the same vehicle,in the same condition for a significantly lower price than a non buyback. This represents a great value and is the reason IQautos chooses to sell them. We feel that people who do their research will agree. It’s all about providing you with the most vehicle for your dollar!