Certified Pre-Owned

March CPO sales just 0.3% away from all-time high

WOODCLIFF LAKE, N.J. - 

Autodata Corp. determined the industry in March turned the second-highest amount of certified pre-owned vehicles ever.

According to information shared with Auto Remarketing, dealers retailed 243,277 CPO units in March, off by just 0.3 percent year over year when the all-time sales record was established. That’s when the industry delivered 243,944 certified models.

The March figure also soared past the CPO sales total recorded during the previous month by 15 percent.

For the quarter, AutoData indicated the CPO sales figure came in at 647,373 units, edging 0.1 percent higher compared to the first quarter of last year. The amount also was 0.8 percent higher than the fourth quarter of 2016. 

Analysts pointed out that there were 27 selling days in March of this year and last year as compared to just 24 in February of this year. The March sales figure computed into a daily selling rate was 9,010, according to Autodata.

Editor’s note: Watch for upcoming reports from Auto Remarketing highlighting the new, recording-setting CPO sales figures certain automakers as well as industry reaction to how the certified market is behaving.

Autotrader reiterates pitches & promos to close March CPO turns

ATLANTA - 

With 10 sales days left in the month to move certified metal, Autotrader editors released their list of the best certified pre-owned offers available in March. For potential buyers looking to head into spring with the purchase of a like-new vehicle, the site said this could be the right time for dealers to help their customers upgrade the vehicle.

Autotrader executive editor Brian Moody reiterated the CPO sales pitch dealership personnel can relay to “ups” arriving at the showroom in person or virtually in the business development center.

“Certified pre-owned programs typically include an extended warranty and other incentives that provide long-term value, such as bumper-to-bumper coverage and exceptionally low interest rates,” Moody said. “These deals are the perfect option for a used-car shopper who wants the confidence of a new-car purchase."”

To assist dealerships and their customers, the editors at Autotrader highlighted the top monthly certified pre-owned deals, which include:

— Buick’s CPO program touts six years or 100,000 miles of powertrain coverage from the original sale date — a generous term. This month, Buick is also offering 1.9 percent interest for up to 36 months to qualified shoppers on three popular certified pre-owned models: the Enclave, Encore, and LaCrosse.

— Chevrolet’s CPO program offers an additional year of bumper-to-bumper warranty coverage beyond the factory term, and touts six years or 100,000 miles of powertrain coverage from the original sale date. This month, it’s even more appealing, as Chevrolet is offering 1.9 percent interest for up to 36 months to qualified buyers on several popular certified pre-owned models: the Cruze, Equinox, Malibu, Silverado, and Traverse.

— Ford’s CPO program is impressive, as it offers an additional year of bumper-to-bumper warranty coverage, along with seven years or 100,000 miles of powertrain protection from the original sale date. Through the end of the month, Ford is offering 2.9 percent interest for up to 66 months on all of its certified pre-owned models to qualified shoppers — an impressively long term for used vehicles.

— GMC's CPO program boasts excellent warranty coverage: in addition to one extra year of bumper-to-bumper coverage, GMC's warranty offers six years or 100,000 miles of powertrain protection from the original sale date. This month, GMC is sweetening the pot even further with a special interest offer for qualified shoppers: 1.9 percent for up to 36 months on all Acadia, Sierra, and Terrain models.

— Infiniti's CPO program is clearly among the best in the industry, as it offers excellent coverage that can, in many cases, last for six years — with no mileage limit — from the vehicle’s original sale date. Not offering a mileage limit is truly impressive, and Infiniti makes things even more enticing in March with an excellent low-interest financing offer. That deal boasts 0.99 percent interest for up to 36 months on all certified pre-owned Infiniti models to qualified buyers.

— Land Rover's CPO program boasts coverage for up to seven years or 100,000 miles from the original sale date. In March, Land Rover makes things even more appealing with a low-interest offer for qualified shoppers. Although the offer varies from model to model, it boasts 1.9 percent interest for up to 60 months on most 2013-2015 models -- and 0.9 percent interest over that term for the popular compact Range Rover Evoque to qualified shoppers.

— Toyota’s CPO program offers one year of bumper-to-bumper coverage, along with a powertrain warranty that covers vehicles for six years or 100,000 miles from the original sale date. This month, Toyota is sweetening that deal with several low-interest special offers — but the best deal is on the Prius. The hybrid model doesn't just get excellent fuel economy, but also touts interest rates from 1.9 percent for up to 60 months to qualified buyers — a new car deal with a new car warranty for a used car.

— Volvo’s CPO program touts bumper-to-bumper coverage for up to seven years or 100,000 miles from a car's original sale date — longer coverage than virtually every rival.  Volvo is offering a special finance rate in March. Through the end of the month, Volvo is touting 0.9 percent interest for up to 24 months on all certified pre-owned Volvo models to qualified buyers.

For additional details on the CPO programs mentioned, go to this website.

Kia rolls out new prepaid maintenance plan

DEERFIELD BEACH, Fla. - 

JM&A Group applauded Kia Motors America on Wednesday for the launch of its new prepaid maintenance plan — Kia Care Essential. The announcement came during the Kia National Dealer Meeting in Las Vegas.

In keeping with Kia’s initiative of providing customers “good,” “better” and “best” choices, the automaker added Kia Care Essential, a one-year 15,000 mile plan, to its line of Kia Care Choice Maintenance Plans — administered by JM&A Group — to offer Kia customers an affordable product.

Kia Care Choice Maintenance Plans offer vehicle owners multi-term mileage choices that best fit their needs and budget. Additionally, JM&A Group noted that selling prepaid maintenance plans for new and used vehicles in the F&I office or the service drive will continue to build customer loyalty and trust.

JM&A Group went on to mention the branded program also can help to strengthen positive customer relationships, boost CSI, and increase parts and labor sales.

“Prepaid maintenance plans are a proven driver of service retention, customer satisfaction, service and parts revenue, as well as overall repurchase loyalty,” said Greg Silvestri, executive director of service operations at KMA. “By partnering with JM&A Group, we were able to refine our prepaid plans, create new marketing pages on Kia.com, and seamlessly integrate into our owner communication platform to deliver relevant and timely service reminder notifications.”

In addition to branded prepaid maintenance plans, the lineup of Kia Distinction products also includes vehicle service contracts, term care select, road hazard tire and wheel, paintless dent removal, certified pre-owned and CPO wrap. Today, Kia also has one of the fastest growing CPO programs with 65 percent of branded CPO owners returning to the brand for their next vehicle purchase.

“We are committed to providing Kia with quality F&I products and services that support their efforts to increase customer retention and revenue,” said Brian Walwyn, vice president of field sales operations at JM&A Group. “Our dedicated associates will continue to work with Kia on developing other growth opportunities to further improve performance and market penetration.”

3 economists dissect current CPO market condition

LAS VEGAS - 

As one wholesale market economist called the certified pre-owned market one of the “good guys,” another economist specializing in the wholesale space offered a recommendation to make the CPO segment even better, especially for franchised dealerships.

KAR Auction Services chief economist Tom Kontos, NAAA chief economist Ira Silver and Cox Automotive chief economist Tom Webb participated in a panel discussion at the recent Conference of Automotive Remarketing in Las Vegas where the dialogue eventually turned to the CPO market, which generated retail sales of 211,475 units in February, according to Autodata Corp.

Autodata also pegged year-to-date sales of certified units at 404,076 as eight automakers that often generate some of the largest CPO volume are off to strong starts again in 2017.

“It’s been one of the real good guys for all of us here in the remarketing industry that we’ve had such an acceptance and growth in CPO sales,” Kontos said in light of February’s figure representing a 9.8-percent rise on a sequential basis. “It’s really been a demand side supporter for residual and resale values of used vehicle.

“Things will tend to plateau,” he continued. “It’s now just under 20 percent of franchised dealer used-vehicle sales are CPO sales. There’s probably an upward limit to how much more that can grow. But I do expect modest growth in 2017 in CPO sales and that will continue to support used-vehicle values.”

The year-to-date figure bolstered Kontos’ point as the total represented just a 0.4-percent lift compared to the first two months of last year. 

In his commentary associated with the release of the February Manheim Used Vehicle Value Index, Webb explained how the fact that CPO car sales softened by 5 percent in February while CPO truck sales climbed 5 percent supports the theory that CPO sales growth is possibly being restrained by small potential gross profit lifts in certain segments. 

Webb went on to point out the theory is further supported by the 10-percent decline in domestic brand CPO sales, a 1-percent increase for mid-line imports and a 15-percent increase for luxury units.

During the CAR Conference, Webb said, “I think that supports my theory that one of the reasons why a dealer decides not to certify a unit is because margins are so skinny. They don’t see a lot of potential lift.

“It supports that theory that you’ve got to have some gross,” he went on to say. “It’s not like these cars weren’t sold as used. It’s the dealer who makes the decision whether it’s a CPO or not. They decided not to certify because the margin were so skinny. Dare I make a recommendation to those involved in your OEM’s CPO program, you have to remember that you have to leave a profit for the dealer.”

Interest rate impact

With the likelihood those CPO turns are likely to be financed by the buyer, Kontos, along with Silver, briefly touched on any actions taken by the Federal Reserve involving interest rates might do to activities in the F&I office.

“The prospect is very likely that interest rates will move up,” Silver said. “That’s a negative for subprime, but it doesn’t look like the increase will be too drastic. I think the Fed wants to turn this (low-rate accommodation) off but not fight too much against growth.”

When the Fed has modified interest rates, it’s been by 0.25 percent. Chair Janet Yellen signaled a similar move could be made when the Federal Open Market Committee (FOMC) meets next week.

“The amount of increase is likely to be manageable for the auto lending space in that the auto lending space has traditionally been very competitive in their ways to manage their cost of funds. I don’t see the significant impact in the ability for the consumer to be able to borrow,” Kontos said.

Senior editor Joe Overby contributed to this report.

8 OEMs off to strongest CPO starts in 2017

WOODCLIFF LAKE, N.J. - 

A deeper look into the latest certified pre-owned vehicle sales information compiled by Autodata Corp. showed eight automakers that often generate some of the largest CPO volume are off to strong starts again in 2017.

Of those eight OEMs, each one has posted year-to-date CPO sales gains of at least 8 percent. Leading the charge in terms of an increase in actual units is BMW, which has turned 21,462 certified units in two months, according to Autodata. That figure represents a 27.3-percent lift year-over-year.

The other OEMs that are enjoying productive beginnings of their CPO sales year include:

—Acura: 7,298 units, up 31.4 percent

—Cadillac: 6,566 units, up 45.3 percent

—Honda: 38,639 units, up 8.8 percent

—Infiniti: 5,389 units, up 25.1 percent

—Kia: 11,940 units, up 22.1 percent

—Nissan: 30,622 units, up 8.5 percent

—Volvo: 2,814 units, up 21.0 percent

The single OEM with the highest CPO sales figure through the first two months of the year is Toyota. Autodata indicated the automaker turned 61,833 certified units in January and February.

Besides Honda and Nissan, the other two automakers to move at least 30,000 CPO units during the first two months of 2017 were Ford/Mercury (32,882) and Chevrolet (38,045).

February CPO sales climb nearly 10% versus previous month

CARY, N.C. - 

While industry observers spotted some factors impacting new-car sales, franchised dealerships produced strong results in moving certified pre-owned vehicles as the industry generated nearly a double-digit gain on a sequential basis.

According to information supplied by Autodata Corp. on Wednesday, February’s CPO sales came in at 211,475 units; a figure relatively unchanged from the same month last year but it represented a 9.8-percent jump from January.

Autodata said year-to-date sales through February now sit at 404,076 units, marking a 0.4-percent lift versus the same juncture a year ago.

Analysts pointed out there were 24 selling days in February of this year and last year as well as January. That element meant the daily selling rate was 8,811.                                                                                                

Looking a little deeper into the figures, Autodata determined year–over-year domestic CPO brand share softened by 2.9 percentage points to 33.8 percent. Meanwhile, European share ticked up 0.6 percentage points to 16.9 percent. The Asian share also increased, rising by 2.3 percentage points to 49.3 percent.

Perhaps what helped to goose CPO sales in February was shopper traffic dealerships generated through their websites, especially potential buyers scanning inventory via a mobile device. Dealer.com, a Cox Automotive company based in Burlington, Vt., that runs 62 percent of the nation’s dealer websites, shared some insights this week.

“Overall traffic on our Dealer.com websites was strong in February — at a good level — although the level is roughly flat versus year ago,” Andy MacLeay, director of digital marketing at Dealer.com.

“What we are seeing is continued, strong migration to mobile,” MacLeay continued. “People seem to be on the lots, viewing data, comparing cars.  On President’s Day weekend, the spike in mobile shopping was 25 percent higher than last year and 34 percent higher than 2015.”

Editor’s note: Watch for an upcoming report from Auto Remarketing detailing the February CPO sales figures from of the leading automakers in the space.

What lengthening new-car turn times might do to used-car performance

CARY, N.C. - 

Industry observers see trends in the new-vehicle space that are making the delivery of new metal more challenging and, as a result, likely to impact how efficiently dealerships can turn their used-vehicle inventory.

Analysts from Autotrader, Edmunds and Kelley Blue Book all shared data and insights with Auto Remarketing on Wednesday that pointed to possible challenges for franchised dealerships that might face the challenge of finding buyers for their new models — which in some cases are taking the amount of days to turn not seen in almost eight years.

Meanwhile, off-lease volume continues to grow with units ripe to be retailed as certified pre-owned is on the rise.

“(New-vehicle) inventory is starting to swell, which is concerning considering that we’re still months away from the peak summer selling season,” Edmunds executive director of industry analysis Jessica Caldwell said in a message to Auto Remarketing.

Caldwell indicated days to turn has reached its highest level since July of 2009, and new vehicle inventory was up 9 percent year-over-year in February. Edmunds offered this metrics regarding days to turn in February:

• Subcompact cars had a days to turn of 102 days.

• Large cars had a days to turn of 86 days.

• Midsize cars had a days to turn of 82 days.

• Industry average was 74 days.

“The automakers are in a tricky spot: aggressive incentives are already starting to eat into profits and residuals, but it takes discipline to pull back the production reins in what’s still a fairly strong market,” she said.

And what about the CPO department?

“The used vehicles that will feel the squeeze are off-lease and otherwise near-new used,” Caldwell said. “We know those particular types of inventories will climb due to high lease rates so having an abundance of new inventory will create more pricing pressure for those vehicles. The older used vehicles have short supply with higher demand so those should not feel the squeeze from climbing new-car inventories."

Kelley Blue Book senior analyst Alec Gutierrez acknowledged during a conference call on Wednesday that “we are seeing inventory build up across the spectrum” as he put new-vehicle days’ supply at close to 80 days, up from about 70 days a year ago. Gutierrez indicated automakers are slapping more than $3,500 on the hood in incentives to get new models rolling over the curb; a trend a bit surprising since February typically is a slow month for new-car sales anyway.

“You see where inventory levels are at and I think manufacturers are making a concerted effort to try to get the numbers down to some extent,” Gutierrez said. “You would think in February with the expectations and with respect to seasonality, we all know this is a slow month. This would be a month where you could expect to pull back on incentives a bit and a little bit of reduced performance, and it wouldn’t really break anyone’s expectations. 

“But I think at the end of the day, consumers have seen rising incentive levels,” he continued. “We know that typical consumers are going to be in the marketplace typically for 60 to 90 days if not more ahead of their purchase. If they’re keeping tabs on incentive activity and trying to time their overall decision of when to head to the dealership to finalize the deal, a sudden cutback in incentives could certainly sway that to wait or seek an alternative.

“To some extent, incentives remain high because they have been high. Until we see a meaningful impact on overall inventory levels and days’ supply, it’s going to be a slow ramp back down with incentives. And at this point, we’re still seeing the trend head upward,” Gutierrez went on to say.

So if incentives are going to stay high, what’s that trend going to do to dealerships’ used-vehicle prospects?

“With days’ supply where it is and the incentive load at $3,600-plus per unit, there’s most definitely going to be a trickle-down effect impacting the used-car side,” Guiterrez said. “In fact, when we look at overall performance of late-model inventory at auctions across the U.S., we’re seeing about a 2 percent reduction in terms of what dealers are willing to pay at auction year-over-year. If you look at it in terms of retained value, the auction value as a percent of vehicle’s original MSRP, you’re seeing more like a 3-point reduction.

“Although transaction prices on the new-car side remain very strong, that overall incentive load coupled with high days’ supply, not to mention increasing supply on the wholesale side from off-lease inventory returning in greater numbers month in and month out, we are seeing not insignificant downward pressure being applied on used-car values,” he continued. “That trickle-down effect is certainly taking place and it’s something we expect to continue in the months ahead.”

During Wednesday’s conference call, Autotrader senior analyst Michelle Krebs pointed out that there were “healthy” shopping activity on dealership websites last month. She also mentioned the latest analysis from the Conference Board placed consumer confidence at the highest level since 2011 with a strong sentiment of people likely to make a vehicle purchase.

But should it be a new model or a certified unit?

“From a consumer point of view, it’s going to take a little bit more studying to which is the better deal, the off-lease vehicle and sold as a certified pre-owned versus a new one that’s heavily incentivized,” Krebs said.

“Of course, there are two different stories there, too,” she continued. “The price drops have been most significant on traditional cars and less so since truck prices have been stronger as are sport utility vehicles. (The used-car market) almost a mirror image of the new-car market.”

While there might be a glut of new-vehicle inventory gumming up the system now, Krebs advised that the industry keep watch of what happens as the first quarter unfolds.

“I think we should be careful. January and February are lowest sales volume months of the year,” Krebs said. “I think we should pay attention to March and later in the spring. Those months are the strongest and we’ll get a much stronger indication of where 2017 is headed.” 

More CPO strategy advice from top dealers

CARY, N.C. - 

To conclude coverage from the Best CPO Dealers in the USA issue of Auto Remarketing, we share some certified pre-owned strategy from the top-selling Toyota CPO dealer as well as insight from a Volvo store that made the cut.

Starting with Toyota, Auto Remarketing asked how dealers can increase CPO awareness among consumers, and which strategies have been found to be effective.

“We don’t have any strategies to increase CPO awareness among customers. We certify all qualified units to provide a good physical presence on the lot. We’re fortunate our manufacturer is committed to supporting the program and offer what I believe is the best CPO website in the industry,” Ray Sanabia, general sales manager at Cavender Toyota, said via email.

Meanwhile, on the Volvo side, we posed this question: To a customer who perhaps isn’t aware or familiar with CPO, how do you educate them about its benefit?

“We try to use the factory brochure and signs around the store to help educate the customer. We will also try and use the certified checklist,” said Drake Jacobson, pre-owned manager for Borton Volvo.

The complete top 10 CPO lists for Toyota and Volvo are below, along with full-year 2016 CPO sales, is below. For a full run-down of 21 brands and their respective top certified pre-owned dealers, see the Feb. 15 issue of Auto Remarketing

Toyota
1. Cavender Toyota 3,410
2. Longo Toyota 3,260
3. Don McGill Toyota of Katy 2,208
4. Toyota of Boerne 2,095
5. Charles Maund Toyota 2,015
6. Boch Toyota 1,961
7. Kendall Toyota 1,720
8. Koons Tysons Toyota 1,696
9. Arlington Toyota 1,649
10. Findlay Toyota and Scion 1,618

Volvo
1. Autobahn Motorcars 346
2. Crest Volvo Cars 300
3. Boston Volvo Village 286
4. Borton Volvo (Golden Valley) 244
5. Volvo Cars Annapolis 231
6. Niello Volvo of Sacramento 230
7. Stillman Volvo Cars 222
8. Park Place Volvo 213
9. Prestige Volvo 203
10. 128 Volvo Cars 191

Staff Writer Chris Hart-Williams contributed to this report. 

CPO share of franchised used at record high; room to grow?

CARY, N.C. - 

A record 22.8 percent of franchised dealers’ used-car sales last year were certified pre-owned vehicles, according to an Edmunds report, and there were also a record 2.6 million CPO cars sold last year.

But where do certified sales go from here?  That’s not quite certain at this point, although signs would suggest there's potential for growth.

Edmunds said in its latest Used Vehicle Market Report that it’s possible CPO sales continue rising, but notes that certified sales “don’t specifically correlate” to the industry's bump in leasing.

Lease originations were close to 4 million in 2015, were well past 4 million in 2016 and are expected to reach 4.1 million this year, according to the Edmunds report.

The certified pre-owned market has had gone six straight years of record sales, according to Autodata Corp., but those numbers — while impressive — haven’t yet reached an annual sum of 3 million.

Certified sales were up 3.5 percent last year, but Edmunds said there may have been potential for more.

“CPO sales actually didn’t grow as much as would have been expected, given the number of vehicles coming off of lease,” Edmunds senior analyst Ivan Drury said in a news release accompanying the report.

“This indicates dealers put more off-lease vehicles directly onto lots instead of going through the certification process, which could be one factor keeping pricing in check and allowing the market to absorb so many newer vehicles entering the market at once,” he said.

According to Manheim’s 2017 Used Car Market Report, there were 18 percent more off-lease vehicles than CPO sales last year.  There were more than 3.1 million off-lease units last year, with 2017 volumes expected to hit 3.6 million and 2018 volumes projected north of 4 million, according to Manheim.

In a recent phone interview, Cox Automotive chief economist Tom Webb — the architect of the Manheim report, if you will — notes the off-lease growth outpacing that of CPO, but does point out that certified sales remain an important way to protect residual values.

Interestingly enough, though, he does point out that more off-lease volumes may flow into independent dealerships, and these stores may be able to put their own warranties and guarantees on the vehicles.

In the report, Manheim mulls over a potential ceiling for CPO sales, pointing out that “the ratio of CPO sales to the number of new-vehicles sales in the prior four years is now more than 4 percent, up from slightly over 2 percent 10 years ago.”

Citing the National Automobile Dealers Association and Autodata, Manheim also notes that 21 percent of franchised used-car sales were CPO in 2016, up from 14.2 percent six years earlier.

“Note, however, that manufacturers with long-established CPO programs, high lease rates, and remarketing processes that keep a large share of returning units within their dealer networks often have CPO-to-prior sales ratios close to double digits,” Manheim said in the report.

“And their dealers often have used vehicle operations where more than half of all used sales are accounted for by CPO vehicles. This means that the CPO market has at least the potential to continue its growth. It will be a matter of how much marketing muscle the manufacturers want to put behind the programs — and, of course, the dealer’s ability to continue to earn good profits on the sales,” it continued.

Manheim suggests that the certified sales last year didn’t see as much growth as they could have, due to such profitability limitations to the dealer.

The share of compact cars and midsize cars in the pool of lease returns, off-rentals and late-model trades was larger than consumer demand for these vehicles.

“As a result, the potential gross profit on the subsequent retail sales of those units was skinny. So skinny that dealers decided the lift from CPOing the unit would be inadequate relative to the associated costs,” Manheim said. “They retailed the unit without CPOing it.

“Relatedly, manufacturers continued to offer attractive lease deals on new small sedans, which often made the monthly retail payment on a competing CPO unit uncompetitive,” Manheim’s report said. “Some of the pressures above should ease in 2017, and thus, CPO sales will continue to grow.

“It is important, however, that manufacturers design programs that allow dealers to benefit financially.”

It should be noted, as well, that Manheim expects 2017 to be the seventh straight year of best-ever certified sales, for this two-pronged reason: “growing off-lease volumes provide both the need and ability for further growth.”

FCA dealers talk CPO sourcing strategy amid supply gains

CARY, N.C. - 

In the years following the recent recession and new-car sales decline, used-car supply was in a pinch. So finding cars for certified pre-owned programs often proved to be challenging.

Dealers had to get creative to find CPO-worthy vehicles for their lots.

However, used-car supply — like new-car sales — has rebounded in a big way in recent years.

So how has CPO sourcing strategy changed as a result?

That’s the question we posed to top-selling certified pre-owned dealers for Fiat Chrysler as part of the Best CPO Dealers issue of Auto Remarketing.

“We’re continuing to see used-car prices flatten out from what had been record highs, because the supply is increasing. With all the online options to acquire inventory, we continue to identify more sources to supply our growing CPOV program, such as Chrysler Direct,” Michael Sego, executive vice president of Jeep Chrysler Dodge Ram of Ontario, said via email.

“This website lists all the lease returns throughout the entire country, and is a good source for non-rental vehicles with fairly low mileage,” he said. “One of the keys to being competitive in today’s CPO market is to utilize the technological tools available, which emphasize speed and efficiency.

“Lastly, it is simply about creating awareness of your CPO program and the benefits of it, to be genuine when dealing with your guest and simple and transparent in your pricing ... to make the process easy and straightforward.”

At Bill Luke Chrysler Jeep Dodge — the automaker’s No. 1 CPO volume dealer and Auto Remarking’s 2015 CPO Dealer of the Year — dealer principal Don Luke said: “This is a good tool to sell more product. We certify every Fiat Chrysler product in our inventory that qualifies.”

Yark Chrysler-Jeep-Dodge in Toledo, Ohio ranked seventh on the FCA list with 977 certified sales last year.

“CPO inventory has become a ‘core’ product and our purchasing strategy definitely targets these units,” said Bob Lutz, inventory manager at Yark Automotive Group

Steve Amos, the pre-owned manager at Stew Hansen Dodge City Jeep, said: “The biggest part of keeping up with the certified program would be having the correct processes in place to get them from raw trade in or purchase car to on the lot in fast and efficient way looking the part and being ready to be driven home.

“Having a large selection of FCA certified products helps us hit our monthly goals of selling at least100 certified vehicles and continuing to grow as a business by putting customers in certified cars with great certified program warranties.”

The complete top 10 CPO dealers for FCA is below, along with city and 2016 CPO sales:

1. Bill Luke Chrysler-Jeep & Dodge (Phoenix) 2,989
2. Stew Hansen Dodge City Jeep (Urbandale, Iowa) 1,249
3. Airpark Dodge Chrysler Jeep (Scottdsale, Ariz.) 1,201
4. Jeep Chrysler Dodge of Ontario (Ontario, Calif.) 1,123
5. Route 46 Chrysler Jeep Dodge (Little Falls, N.J.) 1,040
6. Westbury Jeep Chrysler Dodge (Jericho, N.Y.) 1,034
7. Yark Chrysler-Jeep-Dodge (Toledo, Ohio) 977
8. Mac Haik Dodge Chrysler Jeep (Houston) 967
9. Ken Garff West Valley Chrysler (West Valley City, Utah) 966
10. Westgate Chrysler Jeep Dodge Ram (Raleigh, N.C.) 964