The certified pre-owned market experienced its first year-over-year drop in 15 months, but year-to-date sales remain above the 2010 pace, according to Autodata Corp., which indicated that the industry’s CPO sales came in at 144,523 units during May.

This total for the month is down 3 percent from May 2010 and puts the year-to-date total at 719,702 units, which is 8.7 percent ahead of the first five months of 2010.

While the overall industry experienced a drop-off in certified sales, the daily selling rate in May was actually the strongest of any month in 2011, according to Autodata.

A possible cause of the downswing could be low wholesale volumes and trade-ins, or lack of certifiable inventory. If dealers struggle to find models to certify, then this hurts sales totals and they can’t meet demand.

Also, if models on the new-vehicle side run short, which has been an industry concern since the Japan disaster, dealers will likely offer a CPO option to the customer as the next best bet.

However, despite the downturn in overall sales, a few automakers enjoyed gains for the month and some OEMs shared with Auto Remarketing how they suggested their dealers address a key component in selling CPO: explaining the benefits to the consumer.

Not all consumers that arrive on a dealership lot will know all the ins and outs of the CPO segment and what a certified car entails. That doesn’t mean, however, that such a customer isn’t in the core audience for CPO.

So, how do the top certified leaders recommend dealers push this option?

At Volkswagen — which posted its second strongest certified sales month of all time in May — dealers emphasized the difference between used and CPO, while also giving shoppers as much information as possible, said Scott Weitzman, VW’s general manager of pre-owned operations.

“Our dealers demonstrate the benefits of VW CPO vehicles by explaining that these units are not ‘used cars.’ Our nearly-new vehicles meet rigorous inspection standards and carry a warranty that is backed by the same manufacturer that protects our new-car customers,” he explained.

“We give consumers the confidence to buy without reservation. Our dealers are not afraid to directly show customers reviews and advice provided by third-party research websites that are geared toward consumer education,” Weitzman continued. “We want educated customers that make an informed decision, our dealers are not hiding anything from our CPO customers.”

Such a strategy appears to be paying off. Weitzman said VW’s certified market share is the highest it has ever been, and the automaker was only a little more than 200 units away from breaking the all-time record, which was set in April.

VW moved 7,276 certified vehicles during May, a 45.4-percent increase from the previous year. Through the year’s first five months, CPO sales have hit 30,898 units, compared to 19,868 units during the same period of 2010.

“Our entire dealer network is more engaged in CPO than they have ever been. 95 percent of our dealerships nationwide sold a CPO unit in May,” Weitzman stated. “At the same time, our customer experience ratings on used-vehicle sales are improving every month.”

Offering a perspective from the Honda and Acura brands, Dan Crowe also stressed to Auto Remarketing the importance of salespeople having a firm grasp on the pluses of CPO.

“In today’s market, any consumer who is shopping for a pre-owned vehicle will have some general knowledge about a CPO program. That is why it is critical the sales consultants at the dealership have a thorough understanding of their CPO program and the benefits it provides the consumer,” said Crowe, Honda’s national remarketing manager.

“The sales consultant is the one that  through his or her sales presentation builds value in the vehicle and the certification process and justifies the higher price a CPO vehicle should command,” he pointed out.

Looking at how the automaker fared in May, Crowe said both the Acura and Honda brands enjoyed “outstanding” results.

The Honda division moved 20,320 CPO units, a 6-percent year-over-year increase and the third straight time the brand eclipsed the 20,000 unit sales mark, Crowe said. Year-to-date sales stand at 94,641 CPO units, up from 79,566 units through the same period of 2010.

The Acura brand sold 4,113 certified vehicles in May. This was down from 4,160 CPO units tallied a year ago but marks the fourth straight month of more than 4,000 units sold. Through May, Acura’s 2011 CPO sales have totaled 21,316 units, compared to 17,099 a year ago.

Moving over to Mercedes-Benz, manager of pre-owned operations Scott Penza also offered some unique insight into how Mercedes-Benz dealers are educating shoppers on CPO.

“It is essential that sales people are versed in the CPO program and all of the benefits, but a thorough customer walk-around is still a best practice,” he said.

“It is not uncommon to have a customer on your Mercedes-Benz lot for the first time, so a proper vehicle introduction is a great way to showcase product and program simultaneously,” Penza noted.

“One of the consistent pieces of feedback we receive is that customers are impressed with the overall condition of a CPO vehicle,” he continued. “Customers often rank this as one of the most compelling reasons to choose CPO. The investment a dealer makes in each CPO unit should be shared with potential customers, coupled with the various warranty opportunities available.”

As for May results, the automaker’s certified sales were down 2.1 percent at 6,818 units and its year-to-date sales were down more than 4 percent at 33,450 units.

On the domestic side of the market, Ford moved 10,438 CPO units in May, a 12.9-percent dip from the same month of 2010. Through May, its yearly sales have hit 51,585, off 10.6 percent year-over-year.

The Ford division’s sales came in at 8,745 CPO units, off almost 15 percent year-over-year, while Lincoln/Mercury saw a 1.3-percent decrease with 1,693 units sold.

That said, the Lincoln brand still saw improvement.

“In May, Lincoln sales were up 11 percent year-over-year,” said CPO manager Glenn Burke. “Ford and Lincoln CPO inventory levels have increased during the second quarter. Increased inventory levels should lead to higher sales. Dealers are embracing CPO as a key component of their conquest customer and sales strategies.”

Moving on to General Motors, certified sales for the Buick, Chevrolet, GMC, Pontiac and Saturn brands came in at 20,914 units, down 10.6 percent year-over-year.

Year-to-date sales for these brands are up 6 percent at 117,862 units sold.

Cadillac Certified Pre-Owned Vehicles came in at 2,071 units for May, compared to 2,118 units a year ago. Year-to-date CPO sales for Cadillac through May are at 9,668 units, down 11.4 percent year-over-year.

There were 51 certified Hummer units moved in May, compared to 124 last May.

However, the company also just introduced a revamped CPO program that dealers knew about in advance, and that could have also impacted sales. Dealers just began pushing the new program over the weekend. For full details, visit the article here that Auto Remarketing ran Friday morning.  

“Challenges such as tight vehicle supply are affecting automakers across the pre-owned vehicle market, but our certified program continues to adjust to those challenges and meet our customers’ needs with superior value,” stated Larry Pryg, national manager for GM Certified.

“We’re committed to providing our dealers and customers with the best pre-owned vehicle experience in the industry — a fuel-efficient vehicle lineup, financing incentives and remarkable customer service,” he added.

Over at Chrysler, its dealers sold 9,138 CPO vehicles for the month, a 3.5-percent year-over-year decrease. Through May, it has moved 47,290 certified vehicles for an 8.8-percent gain.

By brand, Dodge led the way with 3,292 CPO units sold, an 8.6-percent year-over-year decrease, while Jeep’s CPO sales were at 3,150 units, down 3.5 percent.

The Chrysler division’s CPO sales climbed 3.3 percent to 2,696 units sold.

Moving on to Nissan, its Nissan brand sold 7,422 CPO units in May (up 7.8 percent), while the Infiniti brand moved 1,081 vehicles (up 3.1 percent).

Year-to-date, the Nissan division’s CPO sales have totaled 35,083 units (up 7.5 percent) and Infiniti has climbed 8.4 percent to 5,152 units.

Next up was Toyota, which sold 28,459 certified vehicles in May, marking an 8.6-percent decrease. In the first five months of 2011, Toyota moved 139,754 units, which was 10.5 percent ahead of last year’s pace.

Lexus sold 5,758 CPO units in May, down 12.6 percent year-over-year. Certified sales for the first five months of the year reached 29,604 units, up 6 percent from the same period of 2010.

Audi moved 3,470 CPO units in May, compared to 2,596 units a year ago. Year-to-date CPO sales hit 15,206 units, up from 10,916 units in the prior-year period.

Volvo sold 1,110 certified vehicles for the month, down from 1,722 CPO units in May 2010. Through the first five months of the year, Volvo moved 5,176 certified vehicles, down from 7,647 units in the prior-year period. Various reports have also mentioned that Volvo is looking into introducing a financial arm in the U.S., which has the potential to bolster CPO sales if it offers special APRs, etc., through that arm.  

Mazda’s CPO sales reached 1,472 units for May, up 413 in May 2010. Year-to-date sales hit 7,379 vehicles, compared to 2,201 units last year.

Hyundai posted 3,445 certified sales for the month, compared to 1,753 units in the year-ago period. Through May, its CPO sales are at 15,638 units, more than doubling the total through five months of 2010 (7,307 units).

Subaru dealers moved 1,950 CPO vehicles for the month, an increase of 18 percent from May 2010. Yearly sales stand at 10,024 units, an increase of 35.3 percent over the same time frame last year.

BMW saw its CPO sales fall 30.3 percent to 7,087 units for the month while year-to-date sales are down 21 percent at 38,191 units.

Kia’s certified sales came in at 605 units in May, up slightly from a year ago when it sold 598 units. Year-to-date sales are at 3,257 units, compared to 2,834 CPO sales in the first five months of 2010.

Among other automakers, Porsche sold 753 CPO units in May, down from 801 last year.

Jaguar’s CPO total reached 312 units for the month, compared to 365 in May 2010. Land Rover sold 157 certified vehicles, down from 272 in May 2010.

Mini sold 160 certified units, versus the 220 units in sold in May 2010. Saab’s CPO sales fell from 248 units in May 2010 to 63 units in the most recent month.

Maserati increased its CPO sales on a year-over-year basis from 22 units to 28 units. Mitsubishi sold 21 certified rides in May, compared to 44 units a year ago.

Lastly, Bentley was estimated to have sold 30 certified vehicles in May.