TORRANCE, Calif. -
Close to the turn of the century, Lexus introduced a unique idea — a manufacturer-sponsored certified program that features the same inspection standards no matter the age or model.
 
The automaker’s management was so confident in the quality of the product, the team was also the first to launch subsidized APRs as well as a 100,000-mile warranty.
 
A key executive at the center of the program’s development, Marv Ingram, will be retiring this week after a career in the automotive field.
 
Though the executive has held many key roles at Toyota and General Motors throughout the years, he is perhaps best known for helping to streamline certified programs, as automakers soon followed Toyota’s lead.
 
Back in 1999, Ingram was the keynote speaker at Auto Remarketing’s inaugural National Remarketing Conference set in Phoenix.
 
“When I first took the National CPO position with Lexus, certified pre-owned was still in its formative years,” he explained to Auto Remarketing Tuesday. “A few manufacturers were in and out of the market, customers and dealers were not convinced certification added value to a pre-owned vehicle, certified warranties were all over the board and media buys and creative strategies were an afterthought to the ad agencies.”
 
Ingram even pointed out a comment he shared at NRC in 1999, "Certified pre-owned was still the Wild West.”
 
However, the Lexus team went about changing this.
 
“Realizing the long term value to the brand, Lexus began a systematic approach to becoming an industry leader in certified vehicles. In early 1997, we introduced the first manufacturer subsidized APR program. This was followed by a relaunch of our CPO program in mid 1998 that standardized CPO for the entire industry. Unlike other programs in the market, all certified pre-owned Lexus vehicles that adhered to our rigorous inspection standards, were sold with the same features, value and benefits, regardless of age. We were so confident in our product, Lexus was the first manufacturer to back our CPO vehicles with a 100,000-mile warranty. At that time, there were no manufacturers that offered a 100,000 mile warranty on new or CPO vehicles,” Ingram explained.
 
“Still looking to differentiate certified from ordinary pre-owned vehicles, Lexus launched a media campaign in late 2003 that changed the Home page on just about every automotive Internet site. Lexus certified pre-owned vehicles were finally recognized as a ‘third category’ of vehicles. It’s not new and it’s not used … but somewhere in between. That year we transferred 75 percent of our media dollars to the Internet,” he continued.
 
Fast forward to today and Ingram points out that CPO sales for both domestic and foreign manufacturers are setting new records.
 
“CPO budgets continue to be strong as they see more and more conquest sales. Dealers over the years have continued to see CPO revenues grow in their pre-owned and service departments. Certified pre-owned vehicles have become more of the norm than the exception. Based on what we are experiencing now, I don’t see this changing in the near future. In fact, over the next few years, those manufacturers who don’t believe their CPO programs are competitive will be making major changes to improve their performance,” he stressed.
 
Ingram’s last workday is Thursday, April 28.
 
“I spent many years with General Motors — during the good times — and many more with Toyota Motor Sales USA. To me, being in the automotive industry has been a very unique experience. If I were to do it again, I think I would try the retail side of the business,” he concluded.