When the automotive market came out of the recession’s tailspin, new-car demand picked back up quicker than used-car demand, a special report from TD Economics explains.
Household balance sheets were getting healthy, consumer confidence and financing conditions were stronger. And there just wasn’t a whole lot of used-car supply, the report said.
But now there is, to say the least.
And it’s younger fleet of used cars being sold, with many sporting tech innovations that have permeated the car business in recent years.
You can bet these cars will sell, and they’ll likely “provide some competition” to the new-car market.
“I do think that it is going to grow, and perhaps slightly faster than the new-vehicle market in percentage terms,” Dina Ignjatovic, economist at TD Economics, said in a phone interview, “and that’s just because of the availability that’s coming back there. And it’s the options that people have.”
She adds, “One thing that’s really attracting people into new-car showrooms is all the new technology that’s come out in recent years. And now that that’s available in used cars, you don’t need to buy a new car to get access to all these new technologies. So, I do think you’re going to see increased demand for pre-owned vehicles.”
The TD Economics report notes that the average age for a used-car sold last year was 4.4 years, a figure driven down by lease returns hitting the market and more than half the sales market being comprised of cars 3 years old or less.
“The trend is set to continue this year, as lease returns are expected to rise by about 25 percent over 2015 levels,” the report said.
Those cars are in the ideal age range for certified pre-owned, which has seen sales records for five straight years.
When asked about the potential growth ceiling for CPO, Ignjatovic said it depends on the price gap between CPO and new, with the thinking being that if the price on a certified car gets too close to new, buyers may just opt for new.
But there is potential that CPO could gain more share of franchised dealer used-car sales.
“I think there’s potential in the sense that we’re seeing a shift in used-vehicle sales toward younger vehicles,” she said. “So, if we are seeing that shift, then you have more potential for that to grow, whereas before when the average age of a (used-car sale) was older, you wouldn’t have as much supply there. So I think that shift will offer that potential.”
Currently, used-car certification programs are now available through most, if not all, major car manufacturers and are joined by numerous warranty companies touting their own versions of vehicle certification.
The certified pre-owned market has broken sales records in each of the past five years, and all data point towards 2016 as another record-breaking year for CPO sales.
Typically, any used car sold through an OEM CPO program or off-brand warranty company will cost more than a used car that is not certified. There are several reasons why such vehicles command a premium in the used-car marketplace. This article will discuss the factors that drive up those costs and, more importantly, increase perceived value for consumers
Certifying a used car requires a financial investment by the dealership in the unit itself. With so many dealerships focused on price compression and turning vehicles faster, adding any additional cost to a vehicle becomes a critical financial decision on the part of the dealership. For dealers in the current highly competitive marketplace, differentiating themselves from competitors and winning over the consumer have become essential to survival.
Wowing the consumer, while keeping the right vehicles on the lot, maintaining value in the car and offering a fair deal is what turns vehicles faster and allows for profit to be made.
In The New Gold Standard, by Joseph A. Mitchelli, the author speaks about how the Ritz-Carlton Hotel Company “wows” their clients: “Customer satisfaction is not enough to ensure business success. Recent research ash shown that customers who are only ‘satisfied’ with a company’s service are far less likely than customers who are ‘extremely satisfied' to remain loyal to that business.”
Specifically, Mitchelli states that customers who reported that they were “extremely satisfied” with a business, were two-and-a-half times more likely to make future purchased from that company.
In the automotive business, there are three major differentiators that move a consumer from satisfied to extremely satisfied at a dealership. They are: vehicle inspection, extended warranty protection and emergency service/roadside assistance. Let’s take a closer look at the value each of these affords.
Vehicle inspection
If a used vehicle meets specified mileage and age requirements, a vehicle history check is performed to ensure the vehicle’s title is clean. If the vehicle history report is clean, the vehicle is then thoroughly inspected by a professional mechanic at the dealership and any failed components are repaired or replaced.
The vehicle is then reconditioned inside and out, with the goal of making it as close to new condition as possible. The vehicle history report and the report detailing the certified used-car inspection and reconditioning process are supplied with the vehicle at the time of sale.
Extended warranty protection
Many CPO programs extend the length of the original manufacturer’s warranty coverage. The extension of coverage typically includes the limited powertrain warranty, which covers the engine and transmission. It may also extend the original “bumper-to-bumper” limited warranty, which covers those components of the vehicle, other than the powertrain, that are not subject to normal wear and tear (tires, brakes, belts, fluids, etc.). Alternatively, some CPO programs offer a separate warranty covering the vehicle against defects for a specific range of time/mileage.
Emergency service/roadside assistance
In addition to extended warranty coverage, CPO programs often include 24-hour roadside assistance, and sometimes provide additional perks such as towing, key lockout, battery jump, trial subscriptions to satellite radio or Internet services, free scheduled maintenance, or courtesy transportation in the event the vehicle requires repair for a covered item.
Additionally, some CPO programs provide a money-back guarantee, allowing a vehicle buyer to return the car within specific time and mileage limits and to choose a replacement vehicle form the dealer’s selection of CPO vehicles.
Value to the customer
Buying decisions made by today’s automotive customers are influenced by several critical considerations: Can they trust the dealer? Is the vehicle safe? Can they be secure in knowing that they’ll be able to maintain the vehicle and their lifestyle in case of an emergency?
Trust
When the consumer understands that the dealership took the time to inspect the vehicle, and complete and document the repairs, this creates a level of trust with the dealership. If the dealers is willing to take the time to care for these vehicles, then the perception is that the dealer has put customer needs and satisfaction first, which leads to a higher transaction satisfaction.
Gilbert Fairhorn, author of Leadership and the Culture of Trust, suggests that social factors and self-serving practices have eroded the confidence that consumers place in businesses. Taking the additional time required to put a vehicle through a rigorous safety inspection bridges the trust gap between consumer and dealer.
Safety
With vehicle safety recalls taking the lion’s share of automotive news, toady’s buyer needs to know that their car is safe. They want to be assured that their significant other, their children, as well as themselves, will be in a vehicle that was inspected, repaired, and certified as safe to drive.
Having access to a detailed and itemized checklist of all items which were inspected by a professional mechanic, and a car that has passed this inspection or has been brought up to those standards, appeals to today’s car buyers. Furthermore, backing this with a warranty adds additional peace of mind that the purchase is safe and reliable.
Security
A recent Harvard study reports that American families judge themselves financially vulnerable: almost half of Americans felt that they were unlikely to access $2,000 in 30 days in the event of an emergency. According to a new Bankrate.com report, “Almost two in three Americans don’t have enough savings to pay for a $500 repair or a $1,000 emergency room bill.” In other words, if most people in the U.S. have a catastrophic breakdown, they would be unable to pay for repairs for a month! Car buyers are looking for the security of knowing that, in the event of an emergency, they would be covered and taken care of.
We began this discussion by stating that CPO prices are higher and enumerated the various reasons why and what this provides the car buyer. Other contributing factors to price are that these cars, sold through dealership under CPO or off brand warranty, are newer models with lower miles. They have been thoroughly inspected with vetted title histories, are reconditioned to as close to new condition as possible, are equipped with extended warranties, and offer additional services that are unavailable for used vehicles not sold through a CPO program.
Whether or not paying extra for these services is worthwhile to the consumer, is really based on their needs and risk aversion. By offering consumers a higher level of trust, safety, and security certified pre-owned sales continue to see record transactions, and thus it is apparent that these sales are filling a need now demanded by record numbers of car buyers.
Rob Christman is the fixed operations director of sales at Cox Automotive.
Consumers who buy certified pre-owned vehicles are loyal to the automaker more than 62 percent of the time, according to a presentation from Experian Automotive at the NADA Convention and Expo here earlier this month.
Their manufacturer loyalty rating (62.2 percent) trails that of new-car buyers (64.8 percent) but is nearly three points higher than non-CPO used buyers (59.5 percent), Experian said.
Likewise, make loyalty is 54 percent for CPO, versus 47 percent for non-CPO used and 57.5 percent for new.
Certified commands 20.9 percent model loyalty, against 26.1 percent for new and 15.1 percent for non-CPO used, their data shows.
Listing price, mileage trends
In its Used Vehicle Market Report – Special Edition released in conjunction with the NADA event, Edmunds.com shared a couple other key differences that make CPO stand out: listing prices and average mileage on the cars.
For model-year 2015 vehicles, the average price on a CPO car was $24,941, with the non-CPO coming in at $23,884. Average mileage on a CPO was 14,030, while average mileage on a non-CPO was 17,001.
Among cars from 2014, CPO units listed for $23,632, against $22,012 for non-certified. The mileage for certified vehicles averaged 25,725; for non-CPO, it was 29,175.
In the 2013 class, the average CPO price was $21,607, with the tag on a non-CPO at $19,817. The average CPO unit had 32,392 miles, versus 37,470 on a non-CPO.
Lastly, CPO vehicles in the 2012 model year had an average price of $19,967, compared to $18,563 for the non-certified variety. The miles were 38,499 on certified vehicles and 47,879 on non-CPO.
Toyota Certified Used Vehicles, as it turns out, is celebrating more than just its 20th anniversary in April.
The CPO program — along with those at eight other brands, for that matter — just posted its best sales month of all time, according to Autodata Corp.
And so did the overall industry.
As for Toyota, it moved 38,563 certified vehicles in March, which beat year-ago figures by 23.2 percent, Autodata said.
Toyota leadership told Auto Remarketing last month that TCUV aims to have 400,000 sales this year.
Through the first quarter of 2016, the company is right on pace with 100,511 certified sales year-to-date.
Of course, Toyota was not alone in CPO record-breaking in March. Not even within its own parent company.
Its sister brand on the luxury side, Lexus, reached an all-time high with 8,560 CPO sales in March. It closed the quarter with 22,994 CPO sales.
Japanese rivals Nissan and Infiniti both posted record certified months, as well, with 16,228 and 3,027 CPO sales, respectively. Through March, Nissan has sold 44,462 certified vehicles this year and Infiniti has moved 7,335.
Sticking with Japanese brands, Subaru notched a record 5,700 CPO sales, pushing its year-to-date sum to 14,825.
Meanwhile, Korean brands Hyundai and Kia both hit all-time highs, with 9,707 and 6,806 CPO sales, respectively. In Q1, Hyundai sold 23,993 CPO units and Kia moved 16,583.
Domestics were in on the action, as well.
Ford Motor Co. hit a best-ever tally, as its Ford/Mercury and Lincoln brands combined to post 27,826 CPO sales, pushing the year-to-date sum to 73,054 sales.
Fiat Chrysler Automobiles had a record month with 20,866 certified sales. Through Q1, it has moved 55,019 CPO units.
The certified pre-owned market was a popular topic during press conferences at the NADA Convention & Expo and in on-site interviews throughout the show.
The news that came out Monday afternoon further cements why: CPO sales have never been higher than they were last month.
According to Autodata Corp., there were 243,957 certified sales in March, which is an all-time high.
It’s also more than 11,000 units higher than the prior best-ever sum of 232,511, which was set in May. March CPO sales were also up 9.6 percent year-over-year and 15.4 percent from February, Autodata said.
The daily sales rate was 9,035 units, which was the highest ever, Autodata said.
On a brand level, setting best-ever CPO sales records were FCA, Ford Motor, Hyundai, Infiniti, Kia, Lexus, Nissan, Subaru and Toyota.
A central theme to a special edition of the Used Vehicle Market Report from Edmunds.com released today — and the 2016 used-car market, in general — is the heavy amount of cars coming out of leases.
There are several tentacles to this off-lease surge. For one, it represents a steady stream of vehicles ideal for certified pre-owned — an area of the market (along with used-car values) that Edmunds is projecting to have “yet another record year.”
It’s also leading to a younger used-vehicle fleet.
Edmunds said in its report that more than half (55 percent) of dealership used sales last year were for cars ages 3 and under, with signs pointing to that percentage climbing this year.
Driven by off-lease volume, the average age of a used vehicle sold by a dealership dipped from 4.6 years in 2014 (and in both of the two years prior) to 4.4 years in 2015, Edmunds said.
The boom in off-lease cars hitting dealer lots, Edmunds said, “was noticeable last year and now will be even more pronounced since 27.1 percent more cars were sold via three-year leases in 2013 compared with 2012.”
Auto Remarketing caught up with Edmunds’ Ivan Drury, who shared his thoughts on the flood of leases coming back into the market and its impact on the age of used cars that dealers are selling.
When it comes to pricing of these cars, this can be a double-edged sword, he said.
Younger vehicles typically means higher prices. However, he explained, a lot of the lease returns are coming from segments like the compact car, midsize car and subcompact car. This can push overall used pricing down due to the fact that these are usually lower-priced segments.
Edmunds’ report shares more on the segmentation of lease returns. It points about that two-thirds of off-lease volume will likely come from just five segments. Here’s how segments ranked in terms of the most popular leases of 2013:
1. Midsize cars
2. Compact cars
3. Compact crossover SUV
4. Entry-luxury cars
5. Midsize crossover SUV
One interesting nugget to take away from this is that the midsize car, compact car and entry-luxury car are among the “less popular” categories today. And they’re coupled in the top five with the “very desirable” compact crossover SUVs and midsize crossover SUVs, Edmunds said.
The company also notes in the report: “For all of 2016, fuel costs have been projected to remain stable around the current low level. This will give consumers who are on the fence about buying a truck or SUV further reason to purchase in these segments, fueling demand and increasing values.”
Touching on the off-lease/CPO connection, Edmunds points out that these cars typically have a listing price about $1,500 higher than a non-CPO used car.
“The high volume of CPOs in the market mix is helping to boost the industry average used-car transaction price,” the report notes.
Stronger economy’s impact on vehicle age
Today’s economy is largely stronger than, say, six or seven years ago when the recession and auto downturn was still being felt. .
So, we asked Drury to what degree he believes a more positive trending economy is having on vehicle age. He estimated the average trade-in age to be about 6, noting that some consumers are still waiting it out to trade their cars in. However, the off-lease push greatly counteracts that.
“We do see that there are enough off-lease vehicles to offset those really old trade-ins,” Drury said.
“Remember back in 2009, 2010, the sales for new cars were so low that there’s that dearth; there’s that huge dip in what’s even available from then. So, if you look at that average trade-in age, even though it says roughly 6 years, you’re also seeing stuff that’s 10 years old, 9 years old that’s being traded in, still, for a new,” Drury said. “And that average really is, it’s like a dip in between these two humps of really near-new … and then you’ve got the really old. But it’s still enough so that these off-lease are pulling into this younger category.”
Term lengths: threshold or sweet spot?
On the new-car side, Edmunds is seeing folks stretch payments out, Drury said, which reflects the common monthly-payment mentality of car shopping. He expects to see the same in used, particularly due to the amount of off-lease cars coming back.
With many of those ending up as CPO — again, a pricier option that non-certified used — “term lengths either have to go up or they’re just going to have to start denying people, and I think they’ll definitely choose the longer term lengths over saying, ‘you can’t buy this car,’” Drury said.
Average used-car transaction prices were at $18,552 in 2015, an all-time high, Edmunds said. With off-lease units often representing future CPO sales and pricier segments (trucks, SUVs) catching consumers’ eyes, look for that average to remain lofty, Edmunds said. As Drury alluded to above, that should drive longer loan term lengths. Edmunds said in its report that less than $400 per month is typically the range used-car buyers go for.
In 2015, the average term on a used-car loan was 66.2 months, according to Edmunds. The data in the report’s chart — which goes back to 2010 — shows a consistent rise over those six years.
“Used-car bargain hunters may benefit from another market trend: much near-new inventory is coming from car rental agencies whose vehicles are generally in service for a year or two and then dropped back into the marketplace,” Edmunds said in the analysis.
There were roughly 2 million vehicles purchased by rental agencies last year, up from approximately 1.8 million bought in each of the three years prior, according to Edmunds.
Lease rankings
The segment rankings discussed earlier are based on leasing volume, not penetration (the latter of which you might expect to lean more towards luxury vehicles).
“It’s amazing, though, how big the volume has become over time. That growth … it’s exploding everywhere,” Drury said. “And it’s across the board too. If you look at it from, even the (penetration) rate, every category has gone up.”
That includes large trucks, which typically would be expected to be a finance deal or for fleets/businesses.
Sharing more thoughts on the increasing lease penetration, Drury said: “We keep thinking, ‘OK, well, it might taper off,’ but at the same time, I feel like the consumer preference and it makes it so easy, especially for people who are uncertain about what the future holds or even what brand, I would say that leasing’s always the best way to test the waters because, hey, you don’t like it, you’re sending it back.”
And in 2016, they'll be doing so in droves.
So, how do you make your certified pre-owned cars and operations stand out? At Prestige Volvo, digital is key.
As part of our Best CPO Dealers in the United States edition this winter, we reached out to Prestige Volvo — ranked second on the automaker’s list of top certified dealers in 2015 with 337 sales — to get its management’s take on making certified cars stand out.
“With pre-owned, it’s all about digital. That’s where the shoppers are, and it’s both new and pre-owned, but when it comes to used, it’s really all about our digital presence,” said Matthew Haiken, the store’s general manager.
“I can’t give away our secret sauce, but we invest every single possibility into making sure we get enough eyeballs and clicks on the vehicles,” he added. “That is how we stand out, without a doubt. We love pre-owned cars; we have a great inventory; we’re buying every day and selling every day. We’re always maximizing our sources.”
Volvo’s complete list of top 10 CPO dealers for 2015 is below:
1. Volvo of Dallas 411
2. Prestige Volvo 337
3. Boston Volvo Village 314
4. Annapolis Volvo 287
5. Red Bank Volvo, Inc. 270
6. Borton Volvo (Golden Valley) 244
7. Volvo San Diego 241
8. AutoNation Volvo Bellevue 240
9. Don Beyer Volvo – Dulles 232
10. Autobahn Motorcars 231
10. Park Place Volvo 231
There were just under 40,000 Toyota Certified Used Vehicles sold in the program’s first year of operations back in 1996.
Two decades later, TCUV is gunning for 400,000 certified sales.
With TCUV celebrating its 20th anniversary in April, Auto Remarketing caught up with Bill Fay — the group vice president and general manager of the Toyota division at Toyota Motor Sales, U.S.A. — and Tom DeLuise, the national TCUV/TRAC operations manager.
In a phone interview, Auto Remarketing and the Toyota executives covered the program’s beginnings, its progress over the years, the incredible traction CPO has generated industry-wide and more.
Initial goals of TCUV
Just three years after luxury cousin Lexus officially launched its program during CPO's infancy, the Toyota brand rolled out a certified offering of its own in April 1996.
In those days, most of Toyota’s new cars were being sold in the traditional sense; leasing was not extremely common for the brand, Fay said. However, as leasing gained ground for Toyota, CPO was an avenue to “protect the whole lease cycle,” he said.
“But it also was a way to create an additional level of peace-of-mind for customers that were looking for pre-owned vehicles that wanted some more assurances, wanted the additional process that these vehicles went through to be checked and upgraded,” Fay said. “I think it all kind of took off as an opportunity to provide another level of used cars to protect the whole lease cycle as it became more and more popular, and really build some value in pre-owned vehicles at the Toyota dealerships that helped the overall Toyota brand.”
Where change is most evident
The sheer sales volume that has accelerated both at Toyota (going from 40,000 to 400,000 annual CPO sales in 20 years) and the industry at large in the past two decades may be the most obvious sign of change.
But there’s more to it than that. Behind the numbers, there’s a different mindset among consumers and a “refined” approach by dealers.
When asked where the change in TCUV is most evident after 20 years, Fay said: “We’ve got a steady flow of customers that come in and look for those vehicles now. So, there’s a real awareness and understanding out there in the public that the certified used brand at Toyota and at other manufacturers is a real, viable brand that adds some peace-of-mind and value.”
He continued: “Clearly we’ve identified some good opportunities to work together with (Toyota Financial Services) to put some marketing support in place to really add even more value to these vehicles. I think the process within the dealerships has really been refined over the years. They know how to take these vehicles; they know what a certified used vehicle is.
“When they trade for it or they buy it, they’re really efficient at taking these vehicles through their checks and making the necessary upgrades. So, it’s really become, at most of our dealerships, a real efficient process in certifying vehicles, being able to incorporate them into the overall retail process, identify and build some value for the consumer and turn it into a win-win for the dealership and for the consumer.”
Along those same lines, we posed this question to Fay: if you were to ask a Toyota dealer why they appreciate TCUV, what might the dealer tell you?
“I think they’ll tell you that it’s profitable for them, it builds retention for the brand, there’s a value and peace-of-mind for their consumers that they value out of these TCUVs,” Fay said.
“I think they understand that it helps us manage the whole lease cycle; so, it protects residuals, it allows us as a company to be aggressive in how we support new-vehicle sales, primarily through the leasing front, because we’re then able to better manage those off-lease returns in a positive and proactive way. I think that they understand that they’re doing their part to help support the brand. I think they understand that it brings new people to the brand,” he added.
In fact, almost two-fifths of folks buying Toyota certified vehicles are purchasing that brand for the first time, Fay said.
Dealers, he adds, understand that TCUV customers are much more likely to buy TCUV or a new Toyota the next time they’re in the market.
“Probably close to 75 percent of those people we’re able to keep in the family,” Fay said.
Overall industry gains
According to CPO sales data that Autodata Corp. provided to Auto Remarketing in 2011, there were 1.29 million certified units sold industry-wide in 2002, which was the first full year of complete CPO sales data (with a very brief patch of incomplete data in 2003).
Less than a decade-and-a-half later, there have now been five consecutive years of record certified pre-owned sales. There were 2.55 million CPO cars sold last year, according to Autodata, and 2016 year-to-date sales are up 2.5 percent through February.
So what is driving this rapid CPO adoption?
For one, the advantages of buying certified are much more well known in the mainstream and consumers have greater access to learn about these cars through the Web, Fay said.
Going certified, he said, has become a ““much more common and accepted way to acquire a vehicle.”
Perhaps even more telling, Fay said shoppers are proactively looking for these cars.
From the OEM standpoint, it gives them a way to manage the leasing cycle, he said.
That is especially important, given the current leasing environment. In the fourth quarter, lease penetration notched another all-time record, representing 33.6 percent of all new-car financing, according to Experian Automotive.
In a separate report from Edmunds.com, director of industry analysis Jessica Caldwell said there were approximately 346,800 leases in February. That represents nearly a third of new-car transactions, according to the data.
All of that follows an already amped-up stock of lease returns. There are approximately 3 million lease returns on tap for 2016, DeLuise said. This would beat the year-ago figure by more than 700,000 units, he said.
Quality. Whether you’re talking about the condition of the vehicle or the assurance the consumer is getting, quality may be one of the first words to come to mind when discussing certified pre-owned.
And this quality proposition may carry over to the F&I department, as Auto Remarketing learned in reaching out to one of General Motors’ top-selling CPO dealers.
As part of our Best CPO Dealers in the United States edition this winter, we asked John Bergstrom, co-owner of Bergstrom Automotive, about Bergstrom Chevrolet Buick GMC Cadillac, which ranked ninth on GM’s list with 1,150 CPO sales in 2015.
How much do the quality attributes and components of a CPO unit help to “get the deal bought” by the store’s pool of finance companies, Auto Remarketing asked?
“We have found that finance companies that are familiar with the GM certified pre-owned program, especially Ally Financial and GM Financial, are much more prone to approving these transactions relative to non-GM certified units,” Bergstrom said. “They also have a tendency to give us some extra room in how much they will finance because it is certified.
“There is no doubt that the GM certified program adds value for our F&I department,” he added.
The complete list of top GM (Chevrolet-Buick-GMC) CPO stores for 2015 is below:
1. Karl Chevrolet 1,763
2. Al Serra Chevrolet 1,569
3. Lone Star Chevrolet 1,522
4. George Matick Chevrolet 1,367
5. Classic Chevrolet 1,260
6. Courtesy Chevrolet 1,251
7. Bob Brown Chevrolet 1,206
8. DeNooyer Chevrolet 1,159
9. Bergstrom Chevrolet Buick GMC Cadillac 1,150
10. DePaula Chevrolet 1,106
Staff Writer Nick Zulovich contributed to this report.
One of the benefits to certified pre-owned is that it often gives dealers and automakers the chance to introduce a consumer to the brand. An entry point, so to speak.
Maybe the shopper is on the fence financially, but wants some of the same protection and assurance that a new car offers; CPO can be a gateway for the dealer or OEM to bring that customer into the brand and keep him or her until the time is right to buy new.
That may be particularly true for luxury automakers.
So, as part of our Best CPO Dealers in the United States issue this winter, we posed this question: To what degree has the Porsche CPO program opened up a new generation of potential Porsche buyers for your dealership?
Here’s what management from the No. 1 Porsche CPO dealer had to say.
“The Porsche certified pre-owned program has been an amazing success. And in my opinion, it is the best CPO program in the industry,” said Eric Mihelich, general manager of Porsche Atlanta Perimeter, which was the Porsche’s top seller with 566 CPO sales last year.
“It has attracted a whole new group of Porsche buyers to our brand by offering the peace-of-mind of a 100,000-mileage warranty and significant savings versus a new Porsche. Now the ultimate sports car, a Porsche is affordable to a whole new group of clients who may not have considered a Porsche before, but will now be Porsche enthusiasts for life,” he added.
Pre-owned sales manager Ryan McIntyre added: “Porsche’s CPO warranty was rated by Autotrader as being the best CPO warranty on the market offered by any manufacturer. It has been a great way to get first-time Porsche buyers into the Porsche brand. We have seen the majority of these clients returning to us down the road to upgrade to a newer CPO or a brand new Porsche. They are very loyal to the brand. Once they purchase that first CPO Porsche, they are hooked!”
The complete top 10 CPO dealers in 2015 for Porsche is below:
1. Porsche Atlanta Perimeter 566
2. Park Place Porsche 440
3. Hennessy Porsche North Atlanta 353
4. Rusnak/Westlake 337
5. The Collection 312
6. Porsche, North Scottsdale 286
7. Rusnak/Pasadena 267
8. Champion Porsche 258
9. Beverly Hills Porsche 244
10. Porsche of The Main Line 232
