Although the prevalence of certified pre-owned has certainly increased in recent years, it still represents less than a quarter of used-car sales.

Or, as AutoTrader.com president Jared Rowe put it: “That’s a lever we haven’t fully pulled.”

Rowe was speaking last week at the 2015 Digital Summit , an event at Google’s Mountain View, Calif., headquarters hosted by Haystak Digital Marketing.

Rowe says that his company — which, like Haystak, is part of the Cox Automotive family — has a sharp focus on CPO. 

The segment itself is not understood as it should be, Rowe said, but presents a big profit opportunity for dealers.

Granted, Rowe said he understands the cost for the dealer to do certified is high; but here’s the thing: when consumers understand what CPO entails, they are more likely to pay a premium for it, he said.

Across the board, the top benefit consumers find in CPO is the peace-of-mind it offers. But it doesn’t just promote confidence and assuredness in consumers. It can help boost margins and drive loyalty.

That last point — plus the fact that CPO actually “skews young” toward millennials, Rowe said — presents an interesting opportunity for luxury brands, in particular.

Interestingly enough, millennials identify with luxury brand more than any other generation, he said. Of course, they might not all be able to afford a new luxury vehicle. 

But CPO allows luxury brands to get millennials in the door, then — bearing in mind the loyalty element — keep them in the fold.