Last year was the strongest ever for the certified pre-owned market, but it appears that dealers haven’t wasted any time making 2012 another record-breaker.
CPO sales last month were the highest they have even been in any month (March or otherwise), capping what was the best quarter of all time, according to Autodata Corp.

In fact, March was the first time the market has ever climbed above 170,000 CPO sales in a month, the firm noted. Specifically, there were 174,471 certified sales in March, a 7.7-percent year-over-year increase.

What’s more, with sales at 454,944 units through the first three months of the year, this marked the best quarter ever for the CPO industry and an 8.4-percent year-over-year gain.

Additionally, Autodata listed 10 brands as having set all-time records last month, including: Hyundai, Kia, Nissan, Infiniti, Maserati, Mazda, Mini, Porsche, Subaru and Volkswagen.

Of course, such hefty sales require getting the CPO message to the consumer, whether it is through national certified advertising or just talking with the interested shoppers who stops by the dealership.

Auto Remarketing sought the insight from leaders of major CPO programs to see what key benefits of buying certified they try to get across. In essence, what element of CPO resonates the most with shoppers?

Starting with Honda, national remarketing manager Dan Crowe emphasized the importance of the “quality and durability” that consumers find appealing about his company’s brands.

“Most of our CPO advertising is web-based. In this type of media we stress three things: 1) each vehicle is thoroughly inspected, 2) reconditioned our high standards, and 3) backed by an exceptional warranty,” he noted.

“I think most consumers are drawn to Honda and Acura vehicles based on our reputation for quality and durability followed by the certified warranty,” Crowe continued. “With this type of marketing message we set a very high standard and expectation for consumers. Then it’s up to the dealer to validate all of the consumer’s research on our certified vehicles and deliver a vehicle that meets those consumer expectations.”

As for Toyota, Brad Heagy — retail sales and operations manager for TCUV/TRAC — touched on the “strong brand integrity message” the brand strives to convey

“As a factory-backed certification program, TCUV incorporates a strong brand integrity message which provides consumers ‘peace of mind’ with the used-vehicle purchase and ownership experience,” he explained. “The TCUV program combines the confidence of purchasing a new vehicle with the value of a used vehicle to provide a ‘like new’ ownership experience.

“It offers consumers a smart alternative to traditional used-car options and gives them the assurance they are looking for in a used vehicle,” Heagy continued. “Additional benefits include access to preferred financing, as well as optional wrap-around service agreement plans to extend coverage.”

Heagy went on to share some data Toyota has found suggesting that its CPO buyers “are actually more like new-car shoppers than used.” In fact, the proportion of Toyota CPO buyers indicating they would “definitely/probably consider” making a new Toyota lease or purchase was at 70 percent.

Additionally, the most popular response cited by Toyota CPO buyers when asked about their vehicle shopping sources was “Toyota dealer” (77 percent), Heagy noted.

“Like new car buyers, TCUV purchasers are looking for the peace of mind that they can’t get with ordinary used cars. In fact, 57 percent of buyers would not have purchased without the TCUV program,” he added.

At Mercedes-Benz, CPO customers have told the company that the reconditioning/certification process is quite important.

“In a recent survey our customers commented that the reconditioning and certification process, bringing the vehicle to a ‘like new’ condition was a main purchase driver. Our dealers proudly share the efforts made to bring a vehicle to MBCPO status,” said Scott Penza, manager of pre-owned operations at Mercedes-Benz USA.

“In addition, the option to purchase up to 135,000 miles of coverage is very appealing to consumers, as it minimizes one the greatest objections to pre-owned, the fear of no warranty,” Penza added.

Meanwhile, Volkswagen’s Scott Weitzman had this to say: “Volkswagen dealers focus on the comprehensive nature of our CPO warranty when they present their units for sale. Customers appreciate the fact that their ‘new’ car will be covered for at least two years with a bumper-to-bumper factory warranty.”

He continued: “VW sales consultants take advantage of the simplicity of our message without having to perform warranty calculus to determine varying levels of powertrain and comprehensive coverages on used vehicles. The simple message is that you are covered head-to-toe for the next two years (or longer if the vehicles still has factory warranty remaining).

“Our sales professionals also impress upon potential customers that our program is backed completely by Volkswagen and not a third-party provider,” Weitzman shared. “This seems to resonate particularly well with buyers who have had a poor past experience with other extended warranty products in the auto industry or elsewhere.”

Similar to other brands, Ford has found the “peace of mind” message to be a strong one.

Renee Godfrey, Ford CPO brand manager, noted: “One of the biggest benefits of our Ford certified pre-owned program is peace of mind for our customer. These vehicles have been inspected and are backed by Ford Motor Co. with a 12-month/12,000 comprehensive warranty and seven-year/100,000-mile powertrain warranty.

“It removes the worry for the customer of out of pocket expenses for costly repairs,” she added.

Among the top elements cited by Hyundai CPO customers are the warranty benefits and inspection process the brand offers in its program.

“Our CPO consumers value the industry leading 10-year/100,000-mile powertrain warranty and the 150-point inspection conducted by factory trained technicians,” said Jose Froehlich, manager of Hyundai CPO.

“Other selling points not to be overlooked are the 10-year/unlimited-mile roadside assistance and no-charge rental car for covered repairs,” he continued. “These last two really reinforce the value in CPO and how Hyundai stands behind the reliability and quality of every Hyundai CPO vehicle. We convey these points in our advertising along with a compelling APR message.”

Sales Results

Moving on, CPO managers also shared their monthly sales results.

Starting with Mazda, it moved an all-time high of 2,174 units for a 32.9-percent year-over-year gain.

Through the first three months of the year, Mazda has sold 5,647 CPO units, compared to 4,349 certified sales in the same period of 2011.

Likewise, Hyundai hit an all-time high for certified sales, moving 6,634 vehicles, up from 3,893 CPO sales last March. Through the first three months of the year, Hyundai has sold 16,440 certified vehicles, up from 8,925 CPO sales a year ago.

Froehlich said this record month is “attributed to good inventory levels, a strong and consistent APR program, continuous field and dealer training and sustained commitment from our engaged dealers.”

Fellow Korean brand Kia achieved another best-ever month, moving 1,735 units. This is up from 745 CPO sales in March 2011 and pushes year-to-date sales to 4,205 units (up 108.9 percent).

“Kia dealers are now reporting that consumers are telling them ‘It’s cool to drive a Kia’ and we agree. Our first-quarter results indicate more and more consumers agree that Kia needs to be on their shopping list and we welcome the opportunity to introduce consumers to the Kia brand,” explained David Carp, director of fleet and remarketing at Kia Motors America

Toyota sold 31,007 certified vehicles in March, compared to 31,127 CPO sales in the same period of 2011. It moved 82,294 CPO units in the first quarter, up from 81,170 certified sales in the first quarter of last year.

“Our dealership business partners continue to demonstrate resourcefulness with respect to inventory acquisition and remain resolute in their support of the TCUV brand,” Heagy noted.

Lexus had its best March ever for CPO, selling 6,605 units for a 0.3-percent year-over-year hike. Year-to-date CPO sales have hit 17,803 units, up 0.2 percent from the first quarter of 2011.

Within the Big 3, Ford posted 15,251 certified sales in March, up from 11,292 sales a year ago. Through March, it has moved 38,245 CPO vehicles, up from 28,918 in the same period of 2011.

Breaking it down by brand, Ford/Mercury CPO sales reached 13,407 units for the month, up from 10,015 sales in March 2011. The Lincoln division had 1,844 CPO sales, up from 1,277 last March.

“March was a good month for Ford and Lincoln certified pre-owned sales. We continue to see a steady increase 60 days into the launch of our new Certified Pre-Owned Program. Lincoln CPO sales had a record month and Ford CPO sales had the best March since 2006,” said Godfrey.

“We continue to see more dealers getting behind the new program and our CPO inventory levels are up 20 percent year-over-year,” she continued. “We look forward to continuing the momentum into the second quarter.”

General Motors moved 29,604 CPO vehicles in March, down 5 percent year-over-year. Through March, it has moved 78,322 CPO units for a 4-percent gain.

"March continues our 2012 success with the third straight month of CPO sales growth and our strongest sales month since March 2011,” said Larry Pryg, national manager of Certified Pre-Owned Vehicles. “Customers have responded well to our new Owner Care program, and we believe it has contributed to growth in sales and will continue to do so.”

Over at Chrysler, its dealers moved 11,246 CPO vehicles for a 5.1-percent gain in March. First-quarter sales totaled 30,272 units (up 8.5 percent).

By brand, Dodge moved 5,319 CPO units in March (up 29.2 percent), Chrysler sold 2,353 units (down 24.8 percent) and Jeep sold 3,574 vehicles (up 3.4 percent). Fiat (which is not included in the aforementioned total) sold four certified vehicles last month.

BMW sold 7,081 certified units last month, compared to 8,288 in the year-ago period. In the first quarter, its CPO sales totaled 18,709 vehicles, down from 22,957 sales in the same period of 2011.

“Spring has added additional momentum in an already very promising pre-owned market,” said Thomas Kurz, pre-owned manger – sales at BMW of North America. “Despite an already very good sales month in February, in the month of March we have once more seen a significant lift in sales.”

Mercedes-Benz moved 6,994 certified vehicles in March (down 3.3 percent) and sold 19,924 certified vehicles in the first quarter (up 2 percent).

Volkswagen’s best-ever month for CPO included sales of 8,334 units in March for a 21.2-percent uptick, with year-to-date sales coming in at 21,278 (up 31.9 percent).

This bested the prior record by 11 percent, Weitzman emphasized.

“Our dealers are continuing to find the right inventory to maintain the momentum that has resulted in 21 straight month-on-month CPO sales records for the brand,” he noted.

Audi increased its certified sales from 3,318 units to 3,351 vehicles in March. In the first three months of 2012, it has sold 8,786 CPO vehicles, compared to 8,127 certified sales in the same period of 2011.

Over at Honda, the namesake division sold 23,562 CPO vehicles in March, compared to 20,586 certified sales a year ago. Year-to-date sales have reached 60,060 units for Honda, up from 54,079 CPO sales in last year’s first quarter.

The Acura division sold 4,095 certified vehicles in March, down from 4,554 CPO sales last March. Year-to-date sales are at 10,342 vehicles, down from 12,782 CPO sales a year ago.

Next up was Nissan, where the flagship division sold a record 10,025 CPO vehicles (up 26.1 percent) and the Infiniti division moved a record 1,375 units (up 19.7 percent). First-quarter CPO sales reached 25,018 units for Nissan (up 26 percent) and 3,317 vehicles for Infiniti (13.1 percent).

Subaru’s best-ever month included 2,205 CPO sales (up 0.2 percent). The year-to-date sum was at 5,668 units (down 6.5 percent).

Likewise, Porsche had its best-ever showing with 862 CPO sales (up 11.9 percent) and its first-quarter total reached 2,367 sales (up 14.2 percent).

Volvo posted 1,116 CPO sales (down 0.2 percent), with year-to-date sales coming in at 2,897 units sold (up 0.1 percent).

Among other brands, Jaguar moved 300 units (down 11.5 percent) and Land Rover sold 595 CPO vehicles (up from 190 a year ago).

Mini’s CPO sales reached a best-ever 261 units in March, up from 163 in March 2011. Maserati sold a record 41 CPO rides, compared to 37 last year.

Mitsubishi sold 38 units in March, down from 58 a year ago. Bentley was estimated to have sold 30 certified rides.