WOODCLIFF LAKE, N.J. -

A relatively new program within BMW’s certified pre-owned operations that helps dealers retail used loaner and demonstration cars is gaining share in the company’s CPO pie and resonating with dealers and consumers, alike.

Called BMW CPO Elite, the program was rolled out in January 2014 and, according to the company’s website, includes newer-model, lower-mileage BMW vehicles — those having over 300 miles, BMW said, but fewer than 15,001.

The program tacks on an additional one year or 25,000 miles (whichever comes first) of warranty once the four-year/50,000-mile New Vehicle/SAV Limited warranty expires, plus other benefits found on the BMW website.

So, far it appears to be helping BMW move more of its loaner and demo cars into the CPO sales streams.

“It was intended to assist dealers with loaners and demos going into the used-car inventory,” said Kevin Rustad, national pre-owned sales manager at BMW North America.  “In the past, we were only getting about 5 percent of these vehicles sold as CPOs; now, we get over 24 percent, and it is climbing.”

Rustad said that 20 percent of all BMW CPO sales were CPO Elite in 2014. However, he points out that the program has gained a lot of ground — for instance, CPO Elite represented 29 percent of all BMW CPO sales in December.

And it seems that it has gained favor among both the dealer body and the buying public.

“Both consumers and dealer shave responded extremely well,” Rustad said. “Dealers are now more confident in turning loaners and demos because they know they have some support on the back end to assist them in retailing these vehicles. 

“Dealers also love the fact that more customers are gravitating towards CPO Elite because CPO customers are also much more likely to return to the brand when they purchase a CPO,” he continued.

“Consumers have embraced it also, as it provides extra peace-of-mind, a longer warranty and sales support, which equates to a lower monthly payment,” Rustad said. “Every consumer can always appreciate paying a little less per month for The Ultimate Driving Machine.”

They also enjoy the chance to get a car that’s even younger than those typically arriving on dealer lots via off-lease routes.

In fact, when asked which of the differences between CPO and CPO Elite has stuck out the most to shoppers, Rustad said: “Consumers appreciate the fact that they can now get a low- mileage, younger used car which is certified. In the past, it was primarily off-lease cars which were available for CPO; they love the fact that now there is younger alternative for them.”