RALEIGH, N.C. -

In light of Auction Direct USA entering the certified pre-owned market through a partnership with NIADA, one of the questions that chief executive officer Todd Hoagey acknowledged people might have is this: why does the company need a CPO program?

Speaking last week at the partnership’s kick-off event at the Auction Direct store in Raleigh, N.C., Hoagey said the answer is two-fold.

For one, he said, going CPO is about meeting consumer demand in the market. However, “more importantly, it’s the right thing to do,” Hoagey added.

Customers, he said, are looking for an extra layer of assurance through certified vehicles. Not to mention, CPO actually gives them more options in terms of vehicle choice.

Certified pre-owned, Hoagey said, is “customer-centric.”

The event in Raleigh followed an April 27 announcement that Auction Direct had partnered with the National Independent Automobile Dealers Association to offer NIADA Certified Pre-Owned vehicles at its stores.

NIADA executive vice president Steve Jordan talked with Auto Remarketing about the demand for CPO, particularity as it relates to third-party providers like NIADA.

“With our program and certainly with (CarMark Certified Pre-Owned), I think it serves a unique niche in the marketplace, where independent dealers can have a product that is an answer to a franchised product, or an OEM product,” Jordan said.

“And certainly even franchised dealers now have an opportunity to sell an off-brand CPO. If I’m a Toyota or a Honda dealer, I’ve obviously got those CPO programs, but if I’ve got five Ford Explorers on my lot and people are wanting to buy a CPO unit, this would give them an opportunity to certify an off-brand vehicle.”

In terms of branding its own CPO program, NIADA is looking to emphasize “satisfaction and service after the sale,” so that the independent dealer’s consumer has peace-of-mind after the sale.

“When you buy a car from a used-car dealer, one of the biggest concerns and thoughts that they have is, well, what happens when it breaks down?” Jordan said. “This helps us answer that question.”