Ford digital used-car tool lifts sales as chip shortage pinches new inventory

For many dealers, Ford Motor Co.'s used-vehicle platform launched in February couldn't have come at a better time.

Not only is the new Autotrader-powered digital retail tool, called Ford Blue Advantage, giving dealers a greater slice of the pre-owned sales pie, it's offering them another revenue stream as new-vehicle inventory continues to dwindle amid the ongoing semiconductor shortage.

At Power Ford in Albuquerque, N.M., used-vehicle sales are up 19 percent so far in 2021 compared with 2020. Used-vehicle sales jumped 26 percent from February to March, and officials there believe the Ford Blue Advantage platform was the main driver.

"Today's buyers are looking for a transparent, worry-free buying experience," Rob Sneed, the store's general manager, told Automotive News. "Our ability to provide high-quality, highly reconditioned vehicles that come with the assurance of a warranty is precisely the point of separation Ford dealers need to be competitive in today's used-vehicle market."

The site brings together certified used- vehicle inventory from dealers across the country. Customers can search by vehicle type, color, mileage and a number of other options.

Sneed said the platform is seamless and allows customers to "transition directly from the research phase into the purchase phase," making for easier buying experiences and offering advantages over third-party sites.

Ford said it launched the platform in response to dealer feedback and as a way to capture more used-vehicle sales. It says 3 million used Fords are sold each year, but Ford dealers account for only about one-third of those transactions.

The automaker chose to partner with Autotrader in an effort to speed the site's creation.

"We felt Autotrader had a lot of advantages," Andrew Ashman, Ford's U.S. used-vehicle manager, said in February. "Rather than try to rebuild the apple cart, so to speak, we could get up and running quickly. Our decision was pretty easy."

Ford said roughly 1,500 dealers have signed up to use the digital platform, triple the number who normally sell certified used vehicles.

"As we prove this is successful, more and more will want to join," Ashman said.

The site features guaranteed pricing and Kelley Blue Book's Price Advisor tool. About 90 percent of the inventory will be certified as "gold" or "blue." Gold covers Ford vehicles up to 6 years old with fewer than 80,000 miles, and blue covers vehicles from any brand that are no more than 10 years old and have fewer than 120,000 miles.

The certifications come with different warranty levels. Shoppers will earn $110 worth of FordPass Rewards points for a gold purchase and $55 worth for blue. Both levels come with round-the-clock roadside assistance.

"I think that part of the program has given buyers a little more peace of mind when they're buying an older car," said Andy Mohr, owner of Andy Mohr Ford in Plainfield, Ind. "Frankly, cars last longer and people are buying them where 20 years ago they wouldn't have been. If there is any reluctance, the blue part of the program gives them a little more peace of mind."

Mohr said it's still too early to tell whether the new platform is boosting sales but that he's glad Ford put resources into this part of the industry.

"I think it's a great step," he said. "Let's face it, Ford's not in business to sell used cars. Them putting this platform together is an awesome first step that nobody else is really doing. I think they have the making of something really, really good here. The tool itself is user-friendly and the entire concept is spot on for what's needed today."