Critical Shifts:
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High borrowing costs squeeze both sides of the dealership: Elevated market yields increase monthly auto loan payments for consumers while raising floorplan inventory carrying costs for dealers.
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GM is pivoting to older and non-GM used vehicles: Through its expanded CarBravo program, GM now certifies non-GM brands as well as vehicles up to 15 years old with up to 150,000 miles to drive inventory turnover.
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Used inventory is serving as a customer acquisition tool: Incentivized financing on used cars helps keep payments accessible while bringing non-GM buyers into the network—45% of CarBravo buyers are new to GM.
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As borrowing costs stay elevated, GM is putting more emphasis on used vehicles, including older and non-GM inventory. The cost of money is becoming a bigger issue on both sides of the dealership.For consumers, higher market rates add pressure to already-expensive vehicle payments. For dealers, higher borrowing costs can make it more expensive to carry inventory, particularly when vehicles sit on the lot longer than expected.
The benchmark 10-year Treasury yield closed at 5.18% on Sept. 24 and 5.17% on Sept. 25, according to the U.S. Treasury. During the Sept. 25 session, the yield climbed as high as about 5.22% — a fresh 19-year high, according to Reuters.
Treasury yields don't directly set auto-loan or floorplan rates, but they are an important part of the broader borrowing-cost environment. Rising yields can put upward pressure on consumer auto financing and business borrowing costs.
For dealers, that makes inventory turn increasingly important. NADA specifically identifies floorplan expense and aged inventory as key factors in dealership profitability, while Haig Partners notes that excess inventory can increase floorplan interest expense and advertising costs.
That backdrop helps explain why used vehicles are getting more attention, and why GM is expanding its CarBravo strategy.
GM Goes Deeper Into Used
Beginning in June, CarBravo became GM's sole used-vehicle certification program for Chevrolet, Buick and GMC dealers. The program allows participating dealers to certify and sell both GM and non-GM vehicles.
It also goes well beyond the traditional late-model CPO customer. CarBravo's Bravo tier covers vehicles up to 10 years old with fewer than 100,000 miles. Its Budget tier reaches vehicles 10 to 15 years old and up to 150,000 miles, giving dealers a GM-backed way to offer older, higher-mileage inventory.
“We know these customers that buy certified used vehicles, the propensity for them to come back and buy a new vehicle just increases,” said John Fitzpatrick, CEO of CarBravo.
The program is already substantial. GM reported that more than 1,500 dealers were enrolled across all 50 states and that CarBravo sold almost 40,000 vehicles in the first quarter of 2026, its best quarter to date. GM also said 45% of CarBravo customers were new to GM.
And GM is using financing to help move that used inventory. Through Sept. 30, CarBravo is advertising 1.9% APR on select certified used trucks, including qualifying Ford F-150s, Toyota Tundras and Tacomas, Ram 1500s and other pickups.
That promotion is notable in a market where overall borrowing costs remain elevated. While the offer applies only to select vehicles and qualified buyers, it shows how automakers can use financing incentives to make used inventory more affordable even as market rates remain high.
For dealers, that combination matters. Customers have less payment room, carrying inventory can cost more and the vehicles that move fastest may not always be the newest or most expensive units.
GM's answer is to push its dealers deeper into used, including older vehicles, non-GM inventory and targeted financing offers. As Fitzpatrick put it, the goal is to give shoppers confidence that they are getting “a really good, dependable used car.”
