Certified Pre-Owned

Autotrader names top CPO deals as spring arrives


Spring is here, and so are fresh sales for certified pre-owned vehicles. Autotrader has come out with its latest list of top deals that shoppers can jump on throughout March.

The list includes Volvo’s CPO program, which offers qualified buyers interested in 2015 S60 models zero-percent interest for up to 24 months this month.

“With the average transaction price of new cars topping $35,000, many shoppers might be surprised how expensive it can be to simply get a new version of their existing car,” Autotrader executive editor Brian Moody said in a news release. “Certified pre-owned vehicles are the perfect solution. You get the peace of mind a factory-backed warranty brings, a car that's been thoroughly inspected prior to purchase, new-car-like financing deals and a more budget-friendly price.”

Autotrader editors' top picks for certified pre-owned deals for March include:


In conjunction with offering incentives on the 4 Series and 5 Series CPO models, this month, the automaker has added an additional year of coverage to follow the factory warranty period. Qualified buyers can get zero-percent interest for up to 24 months and two payment credits on those models.


The brand provides a special offer to qualified buyers on both its Enclave and Encore models this month. In addition to a 1.9-percent interest rate for up to 36 months, qualified shoppers can get powertrain coverage for up to six years or 100,000 miles, as well as bumper-to-bumper coverage for up to one year.


Along with both a seven-year, 100,000-mile powertrain warranty and a one-year, 12,000-mile bumper-to-bumper warranty, Ford is offering 1.9-percent interest for up to 36 months, 2.9 percent for 48 months and 3.9 percent for 60 months.


In addition to six years of bumper-to-bumper coverage that includes no mileage limit, this month, qualified CPO buyers can receive 1.25-percent interest for up to 36 months on Infiniti CPOs.


Beginning at the end of its standard warranty coverage, the brand also offers one year of bumper-to-bumper coverage. And through the end of the month, qualified Mercedes-Benz shoppers can purchase the CLA and C-Class models with 1.99-percent interest.


Through the end of March, the brand is offering seven years or 100,000 miles of powertrain warranty protection and qualified shoppers can get 1.95-percent interest for up to 36 months or 3.99 percent for up to 72 months.


The automaker touts powertrain coverage of up to seven years or 100,000 miles from the original date of sale combined with offering interest rates from 1.49 percent for up to 36 months.


This March, qualified Volvo shoppers interested in the 2015 S60 can get zero-percent interest for up to 24 months along with seven years or 100,000 miles of bumper-to-bumper coverage.

Best CPO Dealers: Strategies for success — Part II

CARY, N.C. - 

As part of our annual special issue honoring The Best CPO Dealers in the USAAuto Remarketing shared the respective top 10 certified pre-owned sales leaders for a wide array of automakers.

In addition to the lists of CPO leaders, which were based on full-year 2017 sales, we also connected with many of these dealers and asked them about the strategies that made them so successful in the CPO market during 2017.

We shared Part I of their responses on Thursday. Part II can be found below:

To a customer who perhaps isn’t aware or familiar with CPO, how do you educate them about its benefits?

“A series of questions of what the customer’s goals are in the purchase of their next vehicle leads us to explaining the advantages of the CPO purchase. Those advantages are as follows:

  • Late-model, low-mileage vehicle, with more features than a new vehicle with less features
  • Manufacturer’s multi-point required inspection check and certification
  • Clean vehicle history report by Carfax
  • Extended original factory basic and powertrain warranty
  •  24-hour Roadside Assistance Additionally, the manufacturer may offer low special rate financing and free one-year maintenance plan.

“By purchasing a CPO vehicle with these benefits, the customer has then accomplished their purchase goals of safety, security, peace of mind, additional features and amenities, all within a lower price/payment range.” — Steve Kendrick, executive general manager, Infiniti of Gwinnett

“We regard CPO business as the entry portal to our dealership for our future customers. Even more so than a new-car sale, often the CPO customer is an opportunity to make a customer for life. The CPO customer, and frankly any customer considering a franchised dealership, is looking for a new-car experience. We strive to achieve two goals: Certify every vehicle that is eligible, and approach every customer with the same level of service they would expect on a new-car purchase.” — Fred Gallucci, executive manager, Southwest Infiniti

How can dealers increase CPO awareness among consumers? And are there any strategies you have to increase CPO awareness among consumers?

“We create awareness by making sure it is in all of our online content and listings, making sure the salespeople reinforce the message when responding to inquiries and making sure every car in inventory has certified plates, flags and window stickers. The salespeople also call attention to the benefits in every vehicle presentation.

“We signed up for the certification program as soon as Kia made it available; the value in being able to transfer Kia’s leading factory warranty made it an easy decision. Since then it has been a part of our culture. We certify everything eligible, our salespeople are fully trained on how to the sell the benefits and our finance department benefits greatly by wrapping the CPO contract. I feel it is critical for the message of CPO to (be) consistently and constantly reinforced throughout the process, from lead submission through delivery. Consumers are aware of CPO; the value is lost when dealerships try and sell around it.” — Sean Sellers, general manager, Kia of Des Moines

Over at Cobb County Kia, used-car director Blake Hodoh shared this advice (below in italics) on how dealers can increase CPO awareness among consumers:

1. Utilize all digital marketing tools that are centered around CPO inventory: 
A. Autotrader.com
B. Cars.com
C. Kia.com

2. Make sure all CPO vehicles have extensive descriptions and are badged on your website and lot as a certified pre-owned vehicle:
A. Eyebrows on the windshield of every CPO vehicle.
B. Certified badging of every CPO car on your website.
C. Use descriptive terminology like Kia Certified, 10 year 100,000 mile warranty, 150-point certified inspection.
D. In description section of each vehicle, always list Kia Certified.

Asked if there were any strategies the store had to increase CPO awareness among consumers, Hodoh said:

1. Make sure your staff is well versed and properly trained on a proper presentation of the certified program and its advantages. Always sell value.
2. Be sure to have ‘certified’ technicians with the proper training to certify a vehicle.
3. Make sure delivery process on a CPO is as first-class as a new-car delivery.
4. Make sure the used-car building has CPO badging and vehicles are all tagged with CPO flags.
5. Make sure a CPO is always offered to the customer as an option if the new-car doesn’t fit within their budget.

Hodoh added: “It is vital that all CPO vehicles are cosmetically up-to-par ... Spending an extra couple hundred dollars on reconditioning goes a long way in the evaluation of a certified car to a customer ... Make sure the whole dealership from service to sales buys into your certified program to make the buying process seamless. If you follow all of these procedures, it will not only increase profit in sales and service, but customer retention will be higher.”

To what degree has the Lexus CPO program served as a way to get aspirational luxury buyers into new cars at your store?

“The L/certified program by Lexus is a natural progression for customers aspiring to enter the luxury market. Lexus has eliminated the apprehension of buying a used car by backing their certified vehicles with a 2-year unlimited mileage extension to the factory warranty.

“Additionally, the L/certified program includes two years of complimentary maintenance, adding peace-of-mind and a significant savings for the consumer. The customer is given an opportunity to own a Lexus for less, we retain them for service and after a great ownership experience, the natural progression is to a new Lexus.” — Scott Brewer, general sales manager, Pohanka Lexus

How does your store boost the awareness/understanding of CPO among consumers?

“We realize that the best new cars will also become the best used cars. We advertise strongly through our website and all forms of digital and social media — and are always aware that the consumer’s word-of-mouth is our best form of advertising.” — John Barr, general manager, Findlay Toyota

How has the increase in off-lease supply impacted your CPO operations?

“Having an abundance of off-lease VWs readily available has made the sourcing of quality preowned cars much easier; we normally search for inventory from New York to Florida, but we’ve been able to narrow our search to the Mid-Atlantic Region, therefore, saving the dealership additional transportation fees.” — Blake Curtis, pre-owned sales manager, Lindsay Volkswagen of Dulles

“The increase in off-lease vehicles has allowed us to create an inventory of well-conditioned certified units to match the financing programs afforded to us via Volkswagen Credit, which in turn led to a substantial increase in certified sales.” — Michael Mazell, general manager, Stokes Volkswagen

Staff writers Nick Zulovich and Chris Hart-Williams contributed to this report. 

Best CPO Dealers: Strategies for success — Part I

CARY, N.C. - 

As part of our annual special issue honoring The Best CPO Dealers in the USA, Auto Remarketing shared the respective top 10 certified pre-owned sales leaders for a wide array of automakers.

In addition to the lists of CPO leaders, which were based on full-year 2017 sales, we also connected with many of these dealers and asked them about the strategies that made them so successful in the CPO market during 2017.

Part I of their responses can be found below:

What features of Audi certified pre-owned vehicles resonate best with buyers in your market?

“Clients like knowing the vehicle has been through a comprehensive inspection and comes with an additional two years of warranty on top of the factory warranty.” — Joey Morea, certified pre-owned sales director, Audi Atlanta.

How does retailing a certified pre-owned vehicle create opportunities for your finance department to generate additional gross?

“Selling certified pre-owned units allows the finance department to sell wrap warranties. These warranties have longer term benefits to the customer, while adding value to the benefits. It makes it more profitable. Certification also helps add value to the overall book of the vehicle to certain banks, which helps with negative equity and helps to get deals bought.” — Steven Amos, pre-owned manager, Stew Hansen Dodge Chrysler Jeep Ram.

“I think the biggest contribution to making additional gross profit is the recognition of a greater value in the certified pre-owned vehicle by the consumer. F&I products are sold when a customer recognizes a true value, and in CPOV sales, that value is already present. The CPOV customer is more likely to purchase F&I products because they want that ‘new-car coverage and assurance’ at a used-car price. We also sell maxcare bumper-to-bumper coverage that mimics the extended powertrain warranty on a certified vehicle, which most consumers opt for while in the finance office.” — Drew Haag, used-car manager, Performance Chrysler Jeep Dodge.

“CPO introduces the customer to extending their warranty coverage. This fits in nicely to selling the wrap coverage, which helps to increase your opportunities for sales in finance through CPO sales.” — Don Luke, dealer principal, Bill Luke Chrysler Jeep Dodge & Ram.

How has the increase in off-lease supply impacted your CPO operations?

“The off-lease vehicles coming in is a huge help; it eliminates some of the need to acquire vehicles through traditional auctions, plus the vehicles we acquire from our own new-car customers coming off lease have all our service history and records attached to them. It’s really a win-win both for the dealer and the consumer buying the off-lease vehicle, as well.

“This, of course, is my opinion, but ultimately a strong CPO program to help us as a dealer group is essential, as well. (If) Cadillac wants to play in the luxury brand trying to compete with juggernauts like Audi, BMW, Mercedes Benz and yes, Lexus, they had better keep up the dealer support and programs. I have yet to see a TV commercial or radio spots even mentioning Cadillac CPO, unlike the aforementioned.” — Mike Ruiz, certified pre-owned sales manager, Patrick Cadillac.

“The increase in off-lease supply has had a very minimal impact on our CPO operation. It has opened up more inventory pools for us to buy from to restock our inventory, but we still value-price all of our vehicles against the market. At Serra Pre-Owned, we certify every vehicle we can because we believe that the value to our customer gives us a market advantage. With off-lease supply continuing to grow in 2018, we believe we can sell over 1,000 GM CPO (units) in 2018.” — Bob Davidson, used sales manager, Serra Buick GMC Cadillac.

What is necessary for CPO sales to continue increasing and hitting records on a national level?

“I feel that for CPO sales to continue to grow the manufacturer needs to have a strong and balanced leasing plan, since the lease returns purchased by the dealers make up a large portion of the CPO sales.” — Kyle Herman, sales manager, Luther Brookdale Chevrolet Buick GMC

“The keys to increasing CPO sales to record levels will take a team effort from the manufacturer and dealers. Manufacturers need to raise awareness of the benefits and value of the CPO program with consumers utilizing digital and traditional marketing campaigns. Also, incentivizing sales programs like mark of excellence would help drive dealership sales professionals to focus on selling more CPO units. At the dealership level, we need to be completely committed to selling CPOs and make sure the CPO units stand out on the lot, are merchandised well online, stocking/sourcing strategy in place and have a full proof process to make sure reporting is done properly.” — Bryan Long, used-car director, Courtesy Chevrolet

“All the dealers need to buy into the certified program. At Classic Chevrolet, every car, truck or SUV that qualifies to be certified is certified, and we never decertify it to sell it cheaper. Our salesman are trained to show the customer the benefits certification gives them and the value it brings to the vehicle their purchasing.” — Danny Bowen, pre-owned director, Classic Chevrolet Inc.

“My opinion is that one of the biggest factors in continuing to grow the CPO program is factory, bank and dealership relationships. Inventory is the biggest hurdle we climb when trying to stock certified units at the levels we want. A lot of times, when trying to buy leases back at turn-in or even at the sale, they are way off of the money. There has to be a better way for the banks to get what they need while allowing the dealers to be the ones to get their hands on this product. We need to be able to buy more of this product right at time of turn-in.” — Mike Fountain, general sales manager, DePaula Chevrolet

Staff writers Nick Zulovich and Chris Hart-Williams contributed to this report. 


Hyundai lists CPO vehicles for sale on Carfax.com


Hyundai Motor America announced Wednesday that it has begun launching vehicles for sale on Carfax Used Car Listings.

Along with access to a free Carfax Report with every Hyundai Certified and non-certified vehicle, online shoppers who visit Carfax.com can now choose to see only Hyundai CPO vehicles in their search results.

“Our certified program has grown significantly since its inception,” Hyundai Motor America senior manager of certified pre-owned Jose Froehlich said in a news release. “Continuing that trend means being on the shopping and research sites people turn to most when shopping for pre-owned cars, and that’s Carfax.com. This is an excellent opportunity to expand our relationship with Carfax and place Hyundai CPO vehicles in front of ready-to-buy shoppers.”

On Carfax.com visitors can easily connect with the Hyundai dealer directly from the vehicle listing and start searches for cars using Carfax vehicle history attributes, the company said.

“We work hard to deliver maximum value to Hyundai and all the members of our CPO family,” said Carfax vice president Joe Koenig. “Carfax is uniquely positioned to give car buyers and sellers a trusted place to connect and build confidence to buy. Certified vehicles are an increasingly popular option for consumers and we’re excited to help drive more of them to Hyundai dealerships,” Koenig continued.

Additionally, Carfax.com features Carfax vehicle history-based pricing that indicates a “Great”, “Good” or “Fair Value” compared to the list price.

Best CPO Dealers: 2017 sales rankings by brand

CARY, N.C. - 

It has now been seven straight years of record certified pre-owned vehicle sales, according to Autodata Corp.

To recognize the dealers leading the CPO car business, Auto Remarketing presents our annual special section honoring The Best CPO Dealers in the USA.

As part of the Feb. 15 issue of Auto Remarketing, we reached out to automakers across the CPO spectrum and requested their respective top 10 certified dealer lists based on full-year 2017 sales.

Those include the top 10 dealers for each brand along with their respective full-year CPO sales and city/state (where provided).

They can be found below:


Paragon Acura 883
Acura Carland 611
Muller's Woodfield Acura 580
Bill Vince's Bridgewater Acura 573
Vandergriff Acura 572
Niello Acura 546
Jay Wolfe Acura 512
John Eagle Acura 496
Acura of Westchester 494
Gunn Acura 468

Audi Atlanta 850
Fletcher Jones Audi 821
Rockville Audi 742
Audi Central Houston 668
Audi Natick 622
Audi Palo Alto 611
Stevens Creek Audi 605
The Audi Exchange 584
Audi Beverly Hills 582
Audi Burlington 535

Stevens Creek BMW 2,522
BMW of Gwinnett Place 2,465
United BMW 1,591
Chapman BMW 1,571
BMW/MINI of San Antonio 1,527
Vista BMW/Vista MINI 1,498
Hendrick BMW/MINI 1,424
Beverly Hills BMW 1,378
Lauderdale BMW/MINI 1,363
BMW/MINI of Monrovia 1,331

Kelley Buick GMC, LLC (Fort Wayne, Ind.) 1,100
Serra Buick GMC Cadillac (Washington Township, Mich.) 895
Bergey's Buick GMC (Souderton, Pa.) 827
Woody's Buick-GMC, Inc. (Naperville, Ill.) 661
Jim Ellis Buick GMC Mall of Georiga (Buford, Ga.) 601
Motor City Buick GMC (Bakersfield, Calif.) 574
Bob King Buick-GMC (Wilmington, N.C.) 570
Sellers Buick GMC, Inc. (Farmington Hills, Mich.) 566
Sewell Buick GMC (Dallas) 565
Lighthouse Buick GMC (Morton, Ill.) 524

Sewell Cadillac (Dallas) 947
Sewell Cadillac (Houston) 870
Sewell Cadillac of Grapevine (Grapevine, Texas) 790
Ken Batchelor Cadillac (San Antonio) 753
Arrowhead Cadillac (Glendale, Ariz.) 663
Covert Buick GMC (Austin, Texas) 505
Crest Cadillac (Frisco, Texas) 486
Cadillac of Las Vegas (Las Vegas) 398
Patrick Cadillac (Schaumburg, Ill.) 376
Tom Peacock Cadillac Inc. (Houston) 365

Al Serra Chevrolet (Grand Blanc, Mich.) 2,291
Karl Chevrolet, Inc. (Ankeny, Iowa) 2,187
Courtesy Chevrolet (Phoenix) 1,883
DePaula Chevrolet, Inc. (Albany, N.Y.) 1,293
Bergstrom Chevrolet Buick (Neenah, Wisc.) 1,248
Kelly Chevrolet (Fort Wayne, Ind.) 1,245
DeNooyer Chevrolet, Inc. (Albany, N.Y.) 1,208
Classic Chevrolet, Inc. (Grapevine, Texas) 1,128
Luther Brookdale Chevrolet (Brooklyn Center, Minn.) 1,063
John L. Sullivan Chevrolet (Roseville, Calif.) 1,041

Fiat Chrysler
Bill Luke Chrysler-Jeep & Dodge 2,402
Stew Hansen Dodge City Jeep 1,419
Security Dodge Chrysler Jeep Ram 1,230
Route 46 Chrysler Jeep Dodge 1,183
Westbury Jeep Chrysler Dodge, Inc. 1,115
Jeep Chrysler Dodge Ram FIAT of Ontario 1,061
Yark Chrysler-Jeep-Dodge 1,052
Ed Voyles Chrysler Jeep Dodge 967
Performance Chrysler Jeep Dodge 952
Airpark Dodge Chrysler Jeep 951

Paragon Honda 2,990
Norm Reeves Honda Superstore 1,627
David McDavid Honda of Frisco 1,449
Planet Honda 1,445
Hamilton Honda 1,441
Honda of New Rochelle 1,376
DCH Paramus Honda 1,372
Rick Case Honda 1,248
Gwinnett Place Honda 1,165
Honda Marysville 1,118

Rick Case Hyundai (Plantation, Fla.) 1,081
Hyundai of New Port Richey (New Port Richey, Fla.) 1,072
Jim Ellis Hyundai (Atlanta) 1,005
First Hyundai (North Attleboro, Mass.) 663
Napleton's Hyundai (West Palm Beach, Fla.) 635
Lester Glenn Hyundai (Toms River, N.J.) 595
Superior Hyundai (North Fairfield, Ohio) 575
Henderson Hyundai Superstore (Henderson, Nev.) 530
Stew Hansen Hyundai (Des Moines, Iowa) 529
Hyundai of El Paso (El Paso, Texas) 510

Infiniti of Gwinnett (Duluth, Ga.) 918
Sewell Infiniti (Dallas) 907
Southwest Infiniti (Houston) 768
Roswell Infiniti (Roswell, Ga.) 759
Grubbs Infiniti (Grapevine, Texas) 645
Sewell Infiniti of N. Houston (Houston) 622
Crest Infiniti (Frisco, Texas) 548
West Houston Infiniti (Houston) 493
Austin Infiniti (Austin, Texas) 477
Infiniti of Clarendon Hills (Clarendon Hills, Ill.) 465

Jaguar DFW 218
Jaguar Palm Beach 168
Rusnak / Pasadena 160
Jaguar North Scottsdale 154
Warren Henry Jaguar 154
Galpin Jaguar 144
Jaguar Great Neck 143
Jaguar Paramus 140
Hornburg Jaguar Los Angeles 131

Kia of Irvine 855
Garden Grove Kia 837
Luther Kia of Bloomington 717
Kia of Des Moines 617
Courtesy Kia of Brandon 583
Patterson Kia of Arlington 575
Cobb County Kia 558
Halleen Kia 526
Rick Case Kia 511
Car Pros Kia 477

Land Rover
Land Rover North Dade 377
Land Rover Parsippany 370
Land Rover Paramus 349
Land Rover Glen Cove 313
Land Rover Norwood 296
Land Rover Encino 291
Land Rover Denver 281
Land Rover San Diego 255
Land Rover Newport Beach 247
Land Rover South Dade 244

Sewell Lexus 2,199
Park Place Lexus Plano 1,575
Lexus of Glendale 1,326
Longo Lexus 1,191
Lexus of Watertown 1,182
Pohanka Lexus Chantilly 1,099
JM Lexus 1,083
Park Place Lexus Grapevine 1,080
Lexus of Winterpark 1,028
Johnson Lexus of Raleigh 1,022

Mazda South (Austin, Texas) 641
Roger Beasley Mazda Georgetown (Georgetown, Texas) 525
Roger Beasley Mazda Central (Austin, Texas) 503
Morries Minnetonka Mazda (Minnetonka, Minn.) 499
North Park Mazda (San Antonio) 488
Wayne Mazda (Wayne, N.J.) 458
Brown's Fairfax Mazda (Fairfax, Va.) 451
Dublin Mazda (Dublin, Calif.) 400
Piazza Mazda of West Chester (West Chester, Pa.) 385
Tustin Mazda (Tustin, Calif.) 376

Trophy Nissan 2,125
Clay Cooley Nissan 1,391
Garden City Nissan 1,137
Sterling McCall Nissan 1,114
Nissan of McKinney 1,036
Sutherlin Nissan 956
Courtesty Nissan of Tampa 956
Town North Nissan 936
Mossy Nissan 929
Cerritos Nissan 898

Cavender Toyota 3,151
Longo Toyota 3,055
Toyota of Boerne 2,108
Don McGill Toyota of Katy 1,927
Central Florida Toyota 1,803
Kendall Toyota 1,618
Koons Tysons Toyota 1,613
Toyota Carlsbad 1,590
Boch Toyota 1,559
Findlay Toyota 1,558

Autobahn Motorcars 423
Crest Volvo Cars 375
Boston Volvo Village 352
Borton Volvo Cars 344
Prestige Volvo 306
Hendrick Volvo Cars of Charleston 303
128 Volvo Cars 267
Niello Volvo of Sacramento 245
Bobby Rahal Volvo Cars 218
North Point Volvo 218

Luther West Side Volkswagen (Saint Louis Park, Minn.) 1,127
Burnsville Volkswagen, Inc. (Burnsville, Minn.) 614
Gunther Volkswagen of Coconut Creek (Coconut Creek, Fla.) 568
South Bay Volkswagen (National City, Calif.) 546
Volkswagen Santa Monica (Santa Monica, Calif.) 528
Stokes Volkswagen (North Charleston, S.C.) 515
Hall Volkswagen (Brookfield, Wisc.) 505
Volkswagen Kearny Mesa (San Diego) 502
Lindsay Volkswagen of Dulles (Sterling, Va.) 479
Lokey Volkswagen (Clearwater, Fla.) 478

CPO car sales climb modestly in February

CARY, N.C. - 

Certified pre-owned vehicle sales edged up by 0.4 percent in February, keeping the year-to-date sum ahead of 2017 through two months of the year.

According to Autodata Corp., there were an estimated 212,116 CPO sales last month, compared to 211,225 certified sales in February 2017.

Through two months, year-to-date sales of 415,139 are up 2.7 percent from 2017.

Last month’s CPO sales were up 4.5 percent month-over-month, Autodata said.

The daily selling rate of 8,838 units in February was consistent with year-ago figures (8,801). The DSR was up nearly 9 percent from January.

Big 3 CPO sales were up 4.1 percent in February at 74,362 units, with year-to-date sales climbing a shade under 10 percent at 144,636 units.

CPO sales of Asian-brand vehicles (100,992) were down 2.9 percent in February, and year-to-date sales of 198,724 were 1.9 percent softer.

European-brand certified vehicle sales climbed 2.9 percent to 36,762 units in February, putting the year-to-date total at 71,779 (up 2.5 percent).

COMMENTARY: In digital-first world, accurate pricing reigns essential

IRVINE, Calif.  - 

The automotive industry is changing at an unprecedented pace as consumers demand the industry to embrace the digital-first world.

Individuals are beginning their car-shopping process online at an increasing rate, completing most of their research before stepping foot in a dealership.

In fact, according to Cox Automotive’s recent "Future of Digital Retail Study," seven in 10 consumers are more likely to buy from a dealership if they can start the process online, while 71 percent of consumers want to get information about the deal online, away from the dealership.

As more and more of the car-shopping process takes place online, the need for accurate, trusted pricing and data for both new and used vehicles will become even more integral.

Dealers can no longer rely on in-store interactions to lock down a price. With most of the research taking place online, consumers are relying on third-party valuation tools to provide accurate pricing and up-to-date data to guide them through the purchase process.

These pricing tools, backed by up-to-date and relevant data, help give consumers reassurance that they are receiving a fair and accurate price, further alleviating the stresses and concerns that often revolve around the deal-making process.

Third-parties now have access to more data, resources and technology, which has resulted in the most market-reflective valuations to-date for the industry. Enhanced valuation models, like the availability of range-based pricing for consumers, provides car shoppers with a realistic view of what they can expect to pay for a vehicle in their area.

With a local approach that not only looks at data at the state, but also county and even ZIP code level, the data becomes more granular and market-reflective. And when dealers and consumers can come together and work with the same set of numbers, it is a win-win for both parties, as they both spend less time negotiating and more time focused on creating value and enhancing satisfaction around the transaction.

While many dealers have taken steps to deliver a more digitally-enhanced car-shopping experience, and have access to improved data, more work needs to be done to meet the demands of today’s certified pre-owned consumer. Demand for CPO inventory continued its gradual growth in 2017, and Cox Automotive estimates sales will continue to climb in 2018.

Despite this segment’s popularity, there are very few tools that cater specifically to consumers searching for these vehicles. For example, our all-new CPO Price Advisor, which is based on recent certified vehicle sales transactions, updated weekly, and adjusted for local market conditions and seasonal trends, is one tool that helps consumers search for CPO vehicles.

However, the automotive retail community needs to ensure there’s an industry standard when it comes to creating more transparency between dealers and consumers. This ultimately wins out in the long run, as modern, transparent digital tools backed by actual transaction data will help move units faster; a process that both dealer and consumer can trust and buy into.

As digital retailing continues to become a larger part of the car-shopping process, demand for trustworthy, reliable and data-driven pricing tools will only grow greater. It’s time to meet the consumer’s needs head on and enable a more transparent and confident car-shopping experience online.

Mike Sadowski is vice president of operations and general manager for Kelley Blue Book.

KBB introduces new market-reflective CPO Price Advisor

IRVINE, Calif. and ATLANTA - 

Kelley Blue Book has introduced the CPO Price Advisor, which is a new source for certified pre-owned vehicle pricing that has been added to its Price Advisor product suite.

CPO Price Advisor pricing information is based on recent certified vehicle sales transactions and is adjusted for local market conditions and seasonal trends.

The KBB CPO Price Advisor is now available on KBB.com and on participating dealer websites.

“Updated for the needs of a new-age, CPO car shopper, the Kelley Blue Book CPO Price Advisor is utilizing granular data to equip consumers with the most up-to-date information possible when buying a certified vehicle,” KBB general manager Mike Sadowski said in a news release.

In addition to KBB CPO Fair Market Range and CPO Typical Listing Price information, the new CPO Price Advisor presents three different pricing zones by color — white, green and red.

The white zone represents pricing that falls below the KBB CPO Fair Market Range, the green zone reflects current market conditions for a selected vehicle in a buyer’s location and the red zone indicates an exceptionally low supply with high demand and falls above the KBB CPO Fair Market Range.

“CPO sales continue to climb with 2017 marking the seventh consecutive year for sales growth. Cox Automotive estimates sales will continue their record streak in 2018 with 2.7 million CPO vehicles sold for the year, making the need for the latest in CPO vehicle pricing a need more than ever before.”

Autotrader's top CPO deals

In other CPO-related news from Cox Automtoive, Autotrader has come out with its latest list of the top incentive deals available on certified pre-owned vehicle purchases throughout the month, as early-year car shoppers continue to make their way to car lots and showroom floors in search of attractive deals .

Along with Cadillac’s recently upgraded CPO program, this month’s list also features Lexus, which touts a special incentive on CPO versions of the Lexus RX, plus six years of bumper-to-bumper warranty coverage with no mileage limit from the original sale date.

Cadillac’s recently upgraded CPO program boasts six years or 100,000 miles of bumper-to-bumper coverage from the original sale date, along with 2.9-percent interest for up to 60 months on CPO versions of the ATS sedan, Escalade and SRX luxury SUVs.

In addition to seven years or 100,000 miles of bumper-to-bumper coverage from the original sale date, the Jaguar CPO program is also offering the Jaguar XF sedan with 0.9-percent interest for 24 months, 1.9-percent for up to 60 months and 2.9-percent for up to 72 months.

Through the end of February, Lexus CPO program shoppers can get six years of bumper-to-bumper warranty coverage, with no mileage limit from the original sale date. And those interested in the Lexus RX can get 1.9-percent interest for up to 48 months on CPO versions of the model. The offer includes the RX 350 and hybrid RX 450h models.

At Lincoln, CPO buyers are being offered bumper-to-bumper warranty coverage for up to six years or 100,000 miles from the original sale date, and those qualified can get 2.9-percent interest for up to 66 months on their CPO Lincoln through the end of February.

Mazda’s CPO program touts an incentive on CPO versions of the Mazda3 and seven years or 100,000 miles of powertrain coverage from the original sale date this month. Shoppers interested in CPO Mazda3 models from years 2014, 2015 and 2016 can get 0.9-percent interest for up to 36 months or 2.9-percent interest for up to 60 months. Additionally, buyers who finance through Mazda qualify for a free first payment.

This month, Nissan CPO program shoppers can get additional powertrain warranty coverage for up to seven years or 100,000 miles from the original sale date, along with 1.95-percent interest for up to 36 months or 3.99 percent interest for up to 72 months.

At Toyota, in addition to an added year of bumper-to-bumper coverage and up to seven years or 100,000 miles of powertrain protection, buyers of CPO Toyota Camry and Camry Hybrids can get 1.9 percent interest through the end of February.

Volkswagen’s CPO program presents an extra incentive this month. On top of offering five years or 60,000 miles of bumper-to-bumper coverage for most CPO models, qualified shoppers can also get 1.99-percent interest for up to 60 months on all CPO Volkswagen models.

Certified pre-owned car sales start year up 5%

CARY, N.C. - 

After just narrowly notching another record year, sales of certified pre-owned vehicles climbed more than 5 percent in January.

The CPO market began 2018 with 203,024 sales last month, according to Autodata Corp. This was a 5.3-percent hike over January 2017 — although it was also an 8.2-percent decrease from December.

The Big 3 was the highlight of the month, with CPO sales up 16.9 percent from a year ago. Domestic-brand dealers combined to move 70,274 certified vehicles, according to Autodata.

That compares to a 2.2-percent spike for European-brand dealers, who sold 35,019 CPO cars.

Sales of Asian-brand certified units were down 0.8 percent at 97,731.

Autodata notes that with 25 selling days in January (versus 24 a year ago and 26 in December), the daily sales rate of 8,121 beat year-ago figures by 1.1 percent and was down 4.5 percent from December.

Last month, Cox Automotive economists said they are expecting approximately 2.7 million CPO sales in 2018, and if that comes to fruition, it will be the eighth straight year of record CPO sales.

According to Autodata., there was an estimated 2,645,718 CPO vehicles sold in 2017, compared to 2,642,986 sold in 2016.

That’s a gain of just 0.1 percent, but it was enough to bump certified sales to their best year on record.

Autotrader highlights Top 10 CPO vehicles for 2018


With the first full month of the year in the books, Autotrader on Wednesday named the 10 must-shop certified pre-owned mass market and luxury vehicles for 2018.

To make the list, vehicles needed to fit a budget not surpassing $40,000 for the non-luxury cars and $65,000 for luxury models.

“This list of ‘good as new’ models offer the latest design, meaning your friends and neighbors will think you bought a brand-new model, even though you saved money on a certified pre-owned car,” Autotrader executive editor Brian Moody said in a news release. “Aside from being affordable, each car on the list includes a desirable, manufacturer-backed warranty, which means these selections come without many of the traditional costs (or fears) associated with a typical used car.”

Autotraders's top 10 lists include, the following group of models listed below:

Mass Market


2015-2017 Chevrolet Tahoe

  2014-2017 Acura MDX

2015-2017 Ford Edge

  2015-2017 Audi A3

2015-2017 GMC Yukon

  2015-2017 Cadillac ATS

2015-2017 Honda Fit

  2014-2017 Infiniti QX60

2016-2017 Hyundai Tucson

  2017 Jaguar F-PACE

2016-2017 Kia Sorento

  2015-2017 Kia K900

2014-2017 Mazda6

  2015-2017 Lexus RC

2014-2017 Nissan Rogue

  2015-2017 Lincoln MKC

2014-2017 Subaru Forester

  2014-2017 Range Rover Sport

2014-2017 Toyota Tundra

  2016-2017 Volvo XC90

Additionally, non-luxury models named have an overall NHTSA safety rating of four stars or more, according to Autotrader.