CPO

Majority Of Shoppers Aware Of Differences In Pre-Owned & CPO

TORONTO - 

Just a mere decade ago, as CPO was emerging onto the market, most shoppers had little idea what the acronym stood for, let alone how these vehicles stood out from late-model used rides.

Now, according to recent TRADER research, the majority of vehicle shoppers are not only aware of the value of certified pre-owned vehicles, but they also have a pretty good idea why CPO models may stand out from their late model used counterparts.

According to research conducted in 2014 by TRADER, 70 percent of vehicle consumers were aware of some of the differences between a used and CPO vehicle. Specifically, out of the 527 shoppers surveyed, 32 percent say they are fully aware of the differences, while 30 percent said they were not familiar with the discrepancies. And 38 percent said they knew of “some of the differences.”

According to TRADER, this pattern didn’t vary much across gender, age or region.

And it seems knowledge of what makes CPO stand out plays a large role in helping convince shoppers to shell out a bit extra for a certified model.

The study stated customers’ likelihood of purchase intent for certified vehicles increased significantly after being exposed to the full definition of CPO.

The company pointed out that this shift is most pronounced to shoppers who plan to purchase a pre-owned vehicle but are swayed to the certified market after receiving further information.

For those considering a pre-owned vehicle, 64 percent of respondents were considering a used ride before being shown CPO material. After exposure to CPO descriptions, only 57 percent were still considering a pre-owned vehicle, showing a major purchase intent shift toward CPO.

For shoppers already looking at CPO vehicles, purchase intent grew from 70 percent to 76 percent after exposure to a description of what a CPO car was, and then asked them if that changed their mind.

Looking at these study results, it seems used-vehicle shoppers are becoming more and more educated on the topic of CPO, but there is definitely still room for dealers to ramp up certified marketing and potentially reap the rewards.

Editor's Note: This story ran in Auto Remarketing Canada Digital Magazine's inaugural "CPO Stars and Certified Trends" issue. Read on for more information regarding CPO sales trends and stratagies as well as find out which Mercedes-Benz Canada dealership has been recognized as Auto Remarketing Canada's CPO Dealer Of The Year.

3 CPO Records to Start 2015

TORONTO - 

Three Canadian automakers notched record months in January for certified pre-owned sales, starting 2015 off with similar certified momentum seen throughout 2014.

Mazda Canada continued its CPO growth with another record month. The automaker sold 431 certified vehicles in January, up from 345 sold during the first month of 2014.

“This was a record January for us. The main drivers behind this improvement is increased dealer profitability, resulting in increased dealer participation,” said Bryan Leaitch, manager of certified pre-owned and remarketing at Mazda Canada.

Audi Canada scored its best-even January for certified, as well, with 398 CPO sales. This performance is up 13.4 percent from January 2014, when the automaker sold a total of 351 CPO vehicles.

Porsche Canada was the third automaker to notch a record this past month with its best January ever. The high-end nameplate sold 77 Porsche Approved Certified Pre-Owned vehicles in January.

Volvo Cars of Canada sold 30 more certified vehicles this January than during the same period of 2014. The automaker delivered a total of 131 CPO vehicles in last month, up 29.7 percent from January 2014.

The Mercedes-Benz Pre-Owned division recorded a great start to the year with 870 vehicles delivered in January. This marks an increase of 71 units (or 8.9 percent) compared to the same time period last year.

The CPO volume accounted for 79 percent of the sales, and Smart pre-owned sales were up 112 percent in January, the company shared.

Mercedes-Benz Mississauga was also recently honored as Auto Remarketing Canada’s first CPO Dealer of The Year.The dealership sold a total of 625 CPO vehicles in 2014.

Volkswagen Canada started the year off just a bit slower than 2014, but still notched significant CPO sales.

The company sold 1,176 CPO vehicles in January, only slightly below last January sales of 1,228.

Kia Canada was off to a great start as 2015 got underway, selling 270 CPO vehicles, which is more than double the 147 sold in January 2014.

“We are off to a go start for 2015 and continuing the strong pace we finished with in 2014,” said Richard Pasta, manager of national fleet sales, remarketing and CPO for Kia Canada.

Toyota Canada sales were down slightly from January 2014, with 1,342 CPO sales this past month, compared to 1,443 sold during the same time period last year.

Honda Canada saw much of the same with 1,039 certified sales last month, down 11.9 percent from the 1,169 sold in January 2014.

That said, the brand's luxury arm experienced a slight boost this past month. The automaker sold 220 Acura CPO vehicles, up 2.8 percent from 214 sold during January 2014.

Todd Fowler, manager of used-vehicle operations at Honda Canada Inc., explained that the challenge of tight used supply is sticking around in 2015.

“This year presents a unique challenge, as the Canadian market is operating under a tight used-vehicle supply, the lowest in more than a decade. However, we have confidence our dealer networks will strive to meet this challenge head-on,” he said.

Editor’s Note: Auto Remarketing Canada just released its inaugural “CPO Stars and Certified Trends” digital magazine issue. Flip through for more info on the movers and shakers in the CPO industry. 

December, Year-End Results Show Strong Year For CPO

TORONTO - 

December closed out a year that spelled growth for many automaker certified pre-owned programs in Canada.

Throughout the year, European automakers saw certified sales soar, and December’s results were no surprise in this respect.

For example, Audi Canada sold 428 certified vehicles, up an impressive 62.1 percent over the 264 units sold in December of 2013.

Over the course of 2014, the automaker sold 5,678 CPO vehicles, versus 4,961 sold in 2013. This represented a 14.5-percent increase year-over-year for the luxury brand.

Mercedes-Benz Canada was another luxury nameplate to see a jump in certified sales this year. It sold 11,123 CPO units in 2014, which marks an 8.7-percent increase from 2013 results.

And the automaker notched records throughout the year, reaching its best monthly volume in the history of the CPO program in May. Record months were also seen in January, July, September and December.

Porsche Canada wrapped up the year with 76 CPO units sold in December. This brought its Q4 total to 250, contributing to a grand total CPO sales of 1,112 for the year.

Wrapping up the European automakers to report year-end results, Volvo Cars of Canada sold 111 CPO units in December. This was the sixth consecutive month certified sales for the automaker have exceeded 100. Volvo Cars of Canada sold 1,353 CPO models in 2014.

Mazda Canada, which notched record months for more than half the year, continued to push CPO sales in December, selling 388 certified units. This contributed to a grand total of 5,695 for the year.

Subaru Canada also ended the year on the upswing, almost doubling their sales numbers for December. Last month, Subaru Canada sold 45 CPO units in December, up from 24 sold during the same month of 2013. The automaker sold 358 CPO units in 2014, up from 310 sold during 2013.  

Editor's Note: For more CPO analysis as well as stats on automakers' best-selling CPO vehicles, see the upcoming Auto Remarketing Canad Digital Magazine, our inaugural "CPO Stars and Certified Trends" issue, which is set to go live later this month.

3 Automakers Continue Streak Of CPO Gains

TORONTO - 

The trifecta of automakers that have posted year-over-year gains consistantly this year continued their success last month.

Once again, Volkswagen Canada, Audi Canada and Mazda Canada notched year-over-year gains.

Take Audi Canada, for example, which sold 466 certified units in November, up from 398 in November 2013. This represents a 17.1-percent year-over-year increase and marks the best November ever for the automaker.

Year-to-date, the automaker has already broken 2013 full-year results (it moved 4,961 CPO units the entirety of last year). As of the end of November, Audi Canada had sold a total of 5,250 certified vehicles, up 11.8 percent from the same timeframe in 2013.

Mazda Canada also continued its streak of drastic year-over-year spikes last month. In November, the company sold 502 certified vehicles, up from 337 sold during the same period of 2013.

So far this year, Mazda Canada has sold 5,279 CPO vehicles, up from 4,870 sold during the same period last year.

In fact, the company’s CPO success caused it to be featured in the latest Auto Remarketing Canada Digital Magazine. Bryan Leaitch, manager of certified pre-owned for Mazda Canada, said one reason for the automaker’s CPO success is increasing dealer participation.

Volkswagen Canada sold a bit more certified vehicles this time around in November, adding to what has been a successful year already for CPO. In fact, VW has seen sales rise year-over-year every month in 2014, with the exception of June.

The automaker sold 1,363 certified vehicles last month, up from 1,247 sold during November 2013. Year-to-date, the automaker has sold 15,984 certified vehicles, up from 13,770 sold during the same period of 2013.  

Kia Canada was another automaker to see a significant certified spike last month. Kia Canada sold 264 CPO units last month, up from 139 units sold during November 2013. Through November, the company sold 2,624 CPO vehicles, up considerably from the 2,096 sold during the same period last year.

And though the numbers are small, Subaru Canada more than doubled its certified sales in November. The automaker sold 38 CPO vehicles last month, up from 15 sold during the same month last year.

Year-to-date, Subaru Canada has sold 313 CPO vehicles, up from 286 as of the end of November last year.

The Mercedes-Benz Pre-Owned division reported 1,035 units retailed in November in Canada. This represents the third consecutive record-breaking month for the automaker. The jump represents a 13 percent increase year-over-year.

So far in 2014, a total of 13,214 pre-owned units have been sold for a year-to-date increase of 7.1 percent or 873 units.

Porsche Approved Certified Pre-Owned reported it sold 79 certified vehicles last month.

Lastly, Toyota Canada reported CPO sales of 1,445 last month, bringing the year-to-date total to 16,839, down from 20,883 sold during the same period of last year. Monthly sales were down from 1,678 sold during November of 2013.

European Automakers Post Strong October for CPO

TORONTO - 

As certified pre-owned results start coming in for October, it is apparent that European automakers are bucking the seasonal sales softening trends often seen during this time of year.

Audi Canada, for example, achieved its best October ever for CPO.

The automaker sold 538 CPO vehicles last month, which represents a whopping 30-percent increase year-over-year. In October 2013, the automaker sold 415 certified rides.

On a year-to-date basis, the company has retailed 4,784 vehicles, which also represents a double-digit annual increase.

Sales are up 11 percent year-over-year for Audi Canada; the company sold 4,299 CPO vehicles through October 2013.

Volkswagen Canada is another European automaker who has seen CPO sales soar this year, and October was no exception.

The automaker sold 1,476 certified vehicles in October, up from 1,235 sold during the same period of 2013. This represents a 19.5-percent year-over-year spike.

And sales year-to-date are not far behind. CPO sales through the end of October are up 16.5 percent year-over-year, moving up from 12,523 to 14,531 this year.

Mercedes-Benz Pre-Owned notched record sales October, for the second consecutive month.

The automaker reported its best October ever with a total of 1,289 certified vehicles sold, which represents a 8 percent or 95 unit increase from the same period last year.

A total of 12,179 Mercedes-Benz CPO units have been sold in Canada so far this year, up 6.6 percent or 754 units from 2013.

Volvo Cars of Canada, also saw an uptick in CPO sales this past month, albeit a bit more slight. The automaker sold 129 certified vehicles in October, which represents a 1.6 percent increase from October 2013.

Lastly, Porsche Approved CPO sales sold 95 certified units last month. This is down from 122 sold during October 2013.

That said, year-over-year sales are up. Porsche has sold 957 CPO units year-to-date, up from 902 sold during the same period of 2013.

Editor’s Note: Stay tuned to Auto Remarketing Canada for further October CPO sales results.
 

Kia Almost Doubles September CPO Sales

TORONTO - 

Many automakers in Canada have been reporting record months for CPO, but Kia topped the list this September.

Kia Canada almost doubled its CPO sales from September 2013, selling 284 certified sales, compared to 143 sold during the same period of last year.

As CPO results started coming in for September, several other automakers’ performances stood out, as well: Audi has notched another record, and Volvo Canada has reported its first positive CPO sales jump this year.

Volvo Canada sold 118 CPO vehicles this past month, up from 95 sold during the same period of last year. This equates to a 24.2-percent increase year-over-year.

Audi Canada once again reported a record month for CPO. The automakers has its best September ever for CPO, selling 480 certified vehicles.

This is up 11.6 percent from the 430 sold during September 2013.

So far this year, Audi Canada has sold 4,246 CPO vehicles, 9.3 percent above the 3,884 sold during the same period last year.

Volkswagen Canada continued to post double-digit increases in September, selling 1,423 CPO vehicles. This is a 15.9 percent increase from the 1,228 sold during the same month last year.

Year-to-date, the automaker has sold 13,055 CPO units, up 15.7 percent from the 11,288 sold during the same period of 2013.

Mazda Canada continues to perform well, seeing certified sales soar last month. The automaker sold 475 CPO vehicles, up from 404 sold during September 2013.

It has sold 4,290 certified vehicles to date this year, up from 4,027 sold through September of last year.

Subaru Canada also notched a year-over-year increase, selling 39 CPO vehicles in September, up from 24 sold last year during the same month.

Year-to-date, the company has sold 246 CPO vehicles, up from 245 sold during the same period of 2013.

Toyota Canada continues to lag behind 2013 numbers, with 1,409 CPO vehicles sold in September. This is down from 1,686 sold during the same period of last year. Year-to-date, the company has sold 13,912 certified vehicles, down from 27,633 sold through September of last year.

Honda Canada is still seeing sales lag, but its luxury arm is seeing consistent CPO sales increases.

Honda sold 1,161 CPO vehicles in September, down slightly from the 1,204 sold during the same period of 2013.

Year-to-date, the automaker has sold 12,199 CPO vehicles, down from 14,707 sold during the same timeframe last year.

Moving on to highlight its luxury arm, Acura sold 240 certified units last month, up from 222 sold during September 2013.

Year-to-date, Acura Canada has sold 2,381 certified rides, up slightly from the 2,314 sold during the same period last year.

“2014 continues to present a unique challenge, as the Canadian market is operating under a tight used vehicle supply, the lowest in more than a decade. However, we have confidence our dealer networks will strive to meet this challenge head-on,” said Todd Fowler, manager of used-vehicle operations at Honda Canada.

Mercedes-Benz Pre-Owned posted a record month again, selling 1,406 CPO vehicles, marking an increase of 14.7 percent from September 2013. Year-to-date, the automaker has sold 10,890 CPO units, which is up 6.4 percent or 659 units from 2013 numbers.

Lastly, Porsche Approved certified pre-owned reported 103 sales in September.

3 Automakers Notch Best August for CPO

TORONTO - 

Certified pre-owned sales were steady in August, and three automakers reported their best August for certified sales ever.

First up, Porsche Canada reported a record month, posting the highest CPO sales for August ever. Porsche Approved certified pre-owned sales reached 96 units last month.

Audi Canada, who continued to see CPO sales soar by double digits last month, also saw a record August for CPO sales.

Last month,  the company sold 496 CPO vehicles, up from 436 sold in August 2013. This marks a 13.8-percent year-over-year spike for Audi.

Year-to-date, the automaker has sold 3,766 CPO vehicles, up 9 percent from the same period last year.

Volkswagen Canada rounded out the three automakers achieving their best Augusts ever for CPO.

VW Canada sold 1,422 CPO vehicles in August, up from 1,410 sold in August 2013 for a 1 percent increase. So far this year, VW has sold 11,632 CPO vehicles, up from 10,060 sold during the same period of 2013. This marks a year-over-year increase of 16 percent.

Mercedes-Benz Pre-Owned also reported a successful August, selling 1,235 vehicles in August in Canada.

For the year so far, the company has sold a grand total of 9,484 vehicles. This means sales are up by 479 units, or 5.3 percent, from 2013 numbers.

Subaru Canada also sold a few more units this time around. The automaker sold 29 units this past month, up from 23 sold in August 2013. That said, numbers are down slightly year-to-date.

As of the end of August, Subaru of Canada had sold 207 CPO vehicles, down from 221 sold during the same period of 2013.

Over at Mazda Canada, the Japanese automaker continues to see popularity rising for its CPO models.

Mazda Canada sold 499 CPO models last month, up from 426 during August 2013.

Year-to-date, the company has sold 3,819 CPO vehicles, up from 3,581 sold during the same period of 2013.

Lastly, though the numbers are large — CPO sales are still dropping for Toyota Canada, in line with a consistent trend this year.

The automaker sold 1,546 CPO vehicles in August, down from 2,051 sold during August 2013. Year-to-date, Toyota Canada has sold 12,503 CPO vehicles, down significantly from 15,767 sold during the same period of 2013.

 

AMVOQ Reveals CPO Program For Independent Dealers

MONTREAL - 

With rumors of expanding used supply on the horizon, as well as more palatable used-car prices, The Used Car Dealers Association of Quebec, known as AMVOQ, (Association des Marchands de Véhicules D'occasion du Québec),  is launching a certified pre-owned program for the province’s independent used-car dealers.

The new program — AMVOQ Certified Pre-Owned — will launch this September, Steeve De Marchi, executive director of AMVOQ, told Auto Remarketing Canada. And dealer registration will begin Sept. 15.

The program, which includes a rigorous set of specifications similar to many OEM CPO programs, was launched with consumer confidence in mind.

"Most car manufacturers already have a certification program, and it was time for us to present our members with their own tool to increase the level of consumer confidence," said De Marchi.  

De Marchi also shared eligibility requirements for both participating dealers and the vehicles that will ultimately be certified through the program.

For AMVOQ dealers to be considered for participation in the program, they must not have any court history related to automotive practices; tout clean and safe facilities; have a compliance program in place; and must respect the standards and program guidelines set in place by the association.

AMVOQ has modeled its vehicle eligibility regulations after other successful programs of its kind, De Marchi said.

For vehicles to be eligible to be certified under the program they must be 6 years old or younger, with 160,000 kilometers or less.

They must also be clean of debts or lien and tout a satisfactory CarProof history report.

Bottom line: AMVOQ’s independent dealers will now have access to many of the same benefits previously reserved for major car manufacturers’ franchised dealers, said De Marchi.

For example, the association’s dealers will now be able to offer the like-new buying experience CPO shoppers are looking for.

Amongst other features, each certified vehicle undergoes a complete 154-point mechanical inspection and ful reconditioning; and includes a one-year/20,000-kilometer power train warranty, exchange privileges (seven days/1,000 kilometers), roadside assistance and complete car history report.

In addition, random inspections will be conducted on a significant percentage of certified cars by qualified non-AMVOQ independent workshops, in an effort to provide peace-of-mind to potential CPO customers.

Customers will also be privy to a three-month free subscription to SiriusXM radio, in satellite-radio equipped vehicles.

The announcement comes at a good time, as CPO sales are booming in both the U.S. and Canada.

In fact, many automakers are up by double-digits for CPO sales when compared to 2013 numbers.

For example, both Volkswagen Canada and Mazda Canada have seen strong certified sales every month this year and continued that growth last month.

VW Canada sold 1,440 certified units, up from 1,291 sold in July 2013. This accounted for an 11.5-percent increase year-over-year and was its strongest July ever for CPO. 

Over at Mazda Canada, Bryan Leaitch, manager of CPO, told Auto Remarketing Canada the automaker sold 546 certified vehicles last month, up from 420 sold during the same period of 2013.

For more information on Canadian CPO sales, see the following Auto Remarketing Canada story.

VW & Mazda CPO Sales Continue to Soar

VW & Mazda CPO Sales Continue to Soar

TORONTO - 

As July CPO sales results come in, one luxury European automaker and a program launched in 2012 led the pack, with sales soaring year-over-year.

Both Volkswagen Canada and Mazda Canada have seen strong certified sales every month this year and continued that growth last month.

First up, VW Canada sold 1,440 certified units, up from 1,291 sold in July 2013. This accounted for an 11.5-percent increase year-over-year and was its strongest July ever for CPO. 

“Another outstanding month for VW Dealers with our best-ever July for CPO sales and best ever new-car sales month in the history of VW Canada,” said Luigi Fiorino, manager of used-vehicle sales for VW Canada.

Over at Mazda Canada, Bryan Leaitch, manager of CPO, told Auto Remarketing Canada the automaker sold 546 certified vehicles last month, up from 420 sold during the same period of 2013.

The automaker is also up year-to-date, with 3,321 CPO units sold, up from 3,156 sold during the first seven months of 2013.

Once again, though selling in more volume, other Japanese automakers aren’t fairing quite as well with CPO growth this year.

For example, Toyota Canada sold 1,671 CPO vehicles last month, down from 1,967 sold in July 2013.

The company’s year-to-date sales are down by over 50 percent: Toyota Canada sold 23,896 CPO units over the first seven months of 2013, compared to 10,957 sold during the same period of this year.

Honda Canada is also struggling a bit with CPO sales, but it’s luxury arm Acura is bucking the trend.

In July, Acura Canada sold 272 CPO units, up from 239 sold in July 2013. Year-to-date, the automaker has sold 1,876 certified vehicles in Canada, up from 1,784 during the first period of 2013.

On the other hand, Honda is feeling the constraints of tight used supply.

The automaker sold 1,487 CPO units in July, down from 1,758 sold during the same period of 2013.

Year-to-date, Honda Canada has sold 9,683 CPO vehicles in Canada, down from 11,891 during the first seven months of 2013.

"In July, Honda sold 1,487 certified used vehicles, a 15.4-percent drop, while Acura achieved 272 certified sales, a 13.8-percent increase both compared to last July,” said Todd Fowler, manager of used-vehicle operations at Honda Canada. “2014 continues to present a unique challenge, as the Canadian market is operating under a tight used-vehicle supply, the lowest in more than a decade.

“However, we have confidence our dealer networks will strive to meet this challenge head-on."

Editor’s Note: Stay tuned to Auto Remarketing Canada for more CPO sales results as the data is reported.

 

Fledgling, Enhanced CPO Programs Gain Traction in First Half of 2014

TORONTO - 

Certified pre-owned sales results for June flowed in this morning and showed that a newly updated program in the Canadian certified landscape is gaining ground among consumers.

Kia Canada’s new enhanced certified program, relaunched back in April, is “gaining traction and support,” Richard Pasta, Kia Canada's manager of national fleet sales, remarketing and CPO, told Auto Remarketing Canada.

The automaker sold 233 CPO vehicles this past month, up from 195 sold during the same period of 2013 — perhaps a sign the enhancements are catching consumer interest.

The program saw a slight drop from May’s sales of 268, but Pasta pointed out that the company is experiencing considerable year-over-year gains in its CPO program.

Mazda Canada’s CPO offerings — another fledging program launched in 2012 — continue to gain traction, as well.

The company sold 543 CPO units in June, up from 457 sold during the same month in last year.

Year-to-date, Mazda Canada has sold 2,780 CPO vehicles, up from 2,699 sold during the first half of 2013.

Interestingly, as Kia and Mazda experience growth in this area, its Asian manufacturer counterparts continue to struggle with finding quality used vehicles for their certified programs.

At Honda Canada, June CPO sales came in at 1,373, down from 1,746 sold during June 2013.

But it’s not all bad news for the Japanese automaker.

It’s luxury arm, Acura sold 288 CPO vehicles in June, up from 242 sold during the same period of 2013.

Todd Fowler, manager of used-vehicle operations at Honda Canada, offered some insight into why the automaker’s mainstream brand is losing CPO ground this year:

“In June, Honda sold 1,373 certified used vehicles, a 21.4-percent drop, while Acura achieved 288 certified sales, a 19-percent increase both compared to last June,” he said. “2014 continues to present a unique challenge, as the Canadian market is operating under a tight used-vehicle supply, the lowest in more than a decade. However, we have confidence our dealer networks will strive to meet this challenge head-on.”

In June, Toyota Canada continued to experience significant CPO sales losses when compared to 2013 results.

The automaker sold 1,490 CPO vehicles in June, down significantly from the 2,049 certified rides sold during the same period of 2013.

Year-to-date, Toyota Canada has sold 9,286 CPO vehicles, down from 15,121 sold during the first half of 2013.

European automaker CPO results for the year continue to paint a different picture.

Audi Canada had its best June ever last month, with 523 CPO vehicles sold, up from 494 sold in June 2013.

“This represents an increase of 6 percent versus the previous year and is our best June ever,” said Elankum Vairavanathan, manager of incentives planning and certified pre-owned sales. “On a year-to-date basis, CPO sales remain strong, up 8.2 percent.”

And though Volkswagen Canada certified sales were down slightly in June, the company remains way ahead of 2013 year-to-date CPO sales.

The automaker sold 1,374 CPO vehicles in Canada last month, down from 1,399 sold in June 2013.

Showing significant improvement, the company has sold 8,770 certified vehicles so far this year, up from 7,359 sold during the same period of 2013.