DEARBORN, Mich. -

The revamped certified pre-owned programs at Ford are on track to eclipse 2011 sales by 29 percent, the automaker said Monday, but that’s not the only sign of progress being spotted in its retooled CPO offering.

National CPO sales manager Todd Fites shared with Auto Remarketing a few other strides Ford has made in the certified department since the automaker rolled out upgraded CPO programs for its Ford and Lincoln brands in February.

For one, dealer engagement and participation is up, Fites said. What’s more, the automaker has taken steps to boost its market share for CPO.

When Auto Remarketing reported on the new programs earlier this year, this was one of the goals its CPO leaders emphasized.

“Our goal is to grow our CPO share of industry to be equal or higher than our new vehicle share. Our long term goal is 15-percent share. Through July the combined FLM share is up 1.7 percentage points versus prior year,” Fites noted Monday.

“The enhanced programs have driven better dealer engagement. We have 457 new dealers in the program who did not sell a single unit in 2011,” he continued.  “We have over 1,600 dealers that have increased their sales versus prior year. The overall programs, developed with our Ford and Lincoln Dealer Councils, have driven more dealer participation.”

Sales Climb

Recent sales results have shown strength within the Blue Oval’s certified programs.

As reported earlier this month in Auto Remarketing, Ford had its best July for CPO in five years, as combined Ford/Mercury and Lincoln CPO sales reached 14,855 units, a 31-percent gain. The Lincoln brand, in particular, had its best July in 10 years, with 1,598 CPO sales (up 13 percent). There were 13,257 Ford/Mercury CPO units sold for a 34-percent gain and the best July since 2007.

“It was another solid month for Ford and Lincoln CPO sales, up 31 percent versus last year and our best July sales volume since 2007,” Renee Godfrey, Ford CPO brand manager, said in that story. “Inventory levels were the best July on record and continue to climb with now over 80 percent of our dealers enrolled in the Ford and Lincoln CPO program.”

Program Benefits

In its news release this week, the automaker also reiterated the benefits of the revamped programs, beginning with the Ford brand.

The comprehensive limited warranty coverage is now 12 months/12,000 miles, where previously it was a three-month/3,000-mile warranty coverage. The powertrain warranty for the Ford brand now offers seven-year/100,000-mile limited warranty coverage, up from the six-year/100,000-mile plan offered previously.

Additionally, it includes seven years of Roadside Assistance and free Sirius Radio for three months on equipped vehicles.

As for the new Lincoln program, it now includes six-year/100,000-mile comprehensive limited warranty coverage. Lincoln CPO customers are also provided six years of Roadside Assistance and free Sirius Radio for three months on equipped vehicles.

The automaker also stressed that for both programs, the multiple-point inspection process now includes new technological amenities like MyFord Touch and MyLincoln Touch, adaptive cruise control and Blind Spot Information System with cross-traffic alert.

When asked what degree he attributes the CPO sales growth to these upgraded offerings, Fites said: “The revamped programs have certainly been an important part of our growth this year but the enhancements were part of an overall strategy which included: a new and expanded CPO team; a consistent fixed marketing presence throughout the year; strong, consistent finance support from Ford Motor Credit; and enhanced CPO consumer benefits.”

Dealers Offer Feedback

As far as how dealers have responded to the program, Ford offered a few examples of stores that have seen growth.

At Jordan Ford in San Antonio, the dealership moved 94 CPO units in July. This was the best month of all time for certified sales at this store, which is one of the country’s top 25 Ford CPO volume dealers.

"When most people buy a used car, their biggest fear is what’s going to happen later,” stated Marc Cross, the dealership’s owner. “The new enhanced warranty helps alleviate some of that apprehension.”

Another dealership that is among the top 25 Ford CPO volume stores, Beau Townsend Ford Lincoln, has seen CPO sales margin climb since the retooled program made its debut, the store’s owners said.

“Our gross profits are definitely higher this year because of the enhanced programs," said Larry Taylor, owner of the dealership, which is located in Vandalia, Ohio. “It gives us more to talk about than just price. And it gives people confidence to buy, because for them it’s like buying a new car at a reduced price.”

Both dealerships were honored earlier this year in Auto Remarketing’s feature on “The Best CPO Dealers in the USA,” which appeared in the Feb. 15–29 print publication. Auto Remarketing also profiled Beau Townsend Ford Lincoln in 2011 for a feature detailing how it strives in the CPO market.

More Benefits of CPO

In the news release earlier this week from Ford, Fites pointed out how the certified programs give shoppers like-new vehicles and peace of mind. Additionally, it often allows shoppers to enter a segment that they might be able to, otherwise, he said.

“Fifty-five percent of these customers are new to the Ford and Lincoln brands, and research shows that a new CPO customer is twice as likely to come back and buy a new Ford product in the future,” Fites noted.