Chrysler Launches Diversified Certified

Chrysler Group rolled out an off-brand certified pre-owned offering this morning and in anticipation of today’s launch, the automaker talked with Auto Remarketing late last week in an exclusive about what Diversified Certified can offer Chrysler’s dealer body.
Basically, the program gives Chrysler dealers a way to certify used cars on their lot from other manufacturers. So for a dealer like Gary Brown, Diversified Certified means a way to get more mileage, so to speak, from conquest sales.
“I really think that my new-car department will be able to analyze trades a little bit differently in conjunction with my used-car manager, and maybe be more creative to make those additional deals,” Brown told Auto Remarketing. “Chrysler is on such a resurgence right now with its new-car volume and a lot of the customers that are coming to us are real conquest sales.
“We’re appraising and trading in many imports and other domestic products, and this is now just a great opportunity for us to then retail them on our used-car lot,” added the owner of Brown’s Jeep Chrysler Dodge and Brown’s Fiat in Patchogue, N.Y. “It just fits together perfectly … now with the opportunity to have a certified program for all makes and all models, it’s real exciting for my used-car department.”
Vehicles that will be eligible for the program are 2008 model-year or newer with less than 48,000 miles. The cars also have to be covered by an existing OEM’s five-year/60,000-mile (or greater) powertrain warranty.
Chrysler will offer five years/60,000 miles (from original in-service date) of what it calls Maximum Care. The coverage inlcudes anything mechanical that is not covered by the original OEM powertrain warranty, explained Eric Swanson, head of CPO at Chrysler.
“So basically, if it’s mechanical, it’s covered,” Swanson said. “The idea is, because it’s under existing manufacturer powertrain coverage, it will still be covered under their existing powertrain and we’ll take care of everything else.
“All of your traditional CPO benefits are included in this, as well,” Swanson emphasized, noting things like roadside assistance, towing assistance, daily rental allowance and trip-interruption benefits. He also stressed that vehicles will be inspected thoroughly and that vehicle history reports are mandatory.
Additionally, there are optional upgrades where the F&I department will have opportunities to use the program.
The automaker is rolling the program out at its Fiat studios first for a roughly a 60-day trial period, then it will launch with Chrysler dealers.
It is providing dealers with point-of-sale marketing materials to help “dress the vehicle up.” Chrysler is also working on an advertising plan for marketing to the public, as well. When asked about financing incentives, there were no details yet but “we’re looking at all options” in marketing, Swanson shared.
He also offered more insight as to why the automaker crafted the program.
“Dealer profitability is key for us and we’re looking at ways to generate additional traffic into our stores. Chrysler has a ton of momentum right now on the new-car side,” Swanson shared. “And that momentum that’s being generated on the new-car side is giving our dealerships opportunities to take trades in that they never have had before.
“We’re conquesting other makes and models, and I want them to be able to look at these competitive make and models — where before they might be tempted to wholesale that competitive make because they’re not familiar with it — and step up and maybe be a little bit more aggressive on the trade and close that new-car deal, take them out of competitive make and model and put them in a brand new Chrysler,” he continued.
In forming the program, Chrysler turned to its dealer body months ago and asked for feedback. Essentially, Swanson said, dealers were asking for simplicity in the coverage and for greater options in their overall used-car portfolios.
In fact, the latter is how the conversations about the program got started in the first place, Swanson emphasized.
The automaker wanted to find out whether such a warranty offering would allow one of the program’s customer to bring a covered vehicle back and have their needs taken care of.
“And the answer was, ‘With a Maximum Care, yes,’” Swanson explained, noting that it would be taken of “either under the original manufacturer’s warranty, where warranty work will be done at the manufacturer’s dealership or if it’s outside of that powertrain that’s existing, we do the work ourselves.”
Essentially, dealers wanted “a way for these used-car customers to come back to our dealerships, a way to come back to us and we keep the customer,” he added.
“Supply is at a premium right now. I don’t think we’re in short supply, I think we just don’t have as much as probably what we’re used to. So dealers are starting to look to these competitive makes more and more,” Swanson shared. “And as we were noticing that, we were asking the question, ‘Well, why can’t we back it with a warranty ourselves?’”