Certified Pre-Owned Archives | Page 4 of 47 | Auto Remarketing

J.D. Power: Smartphone mirroring in 2021 models still triggering complaints

Perhaps emphasizing how that 2021 model that could be a certified pre-owned vehicle in your inventory can connect to the potential buyer’s smartphone might not be the best pitch option for your dealership sales staff.

According to the J.D. Power 2021 U.S. Multimedia Quality and Satisfaction Study, the top-cited problem for new-vehicle owners is connectivity issues with Apple CarPlay or Android Auto.

J.D. Power explained on Thursday that tech companies and automakers are delivering on consumers’ desires to wirelessly connect smartphones to infotainment systems. However, this study showed owners whose vehicles have wireless Apple CarPlay or Android Auto connectivity capability cite more problems (7.1 problems per 100 vehicles) than those whose vehicles do not (4.0 problems per 100 vehicles).

But if you still feel compelled to highlight the smartphone connection capabilities, J.D. Power highlighted that the top-performing vehicles in each segment included:

• Midsize/Large: Nissan Maxima

• Midsize/Large Premium: Cadillac Escalade and Chevrolet Corvette

• Small/Compact: Nissan Sentra for a second consecutive year

• Small/Compact Premium: BMW 4 Series

“Smartphone mirroring has shown to be a source of problems for several years now but has become more problematic this year with the growing ability to wirelessly connect the feature on a number of vehicles,” said Brent Gruber, senior director of global automotive quality at J.D. Power.

“Fortunately, the top tech companies and automakers have the ability to generate demand for new or upgraded technologies while troubleshooting current issues as the rollout continues,” Gruber continued in a news release.

The 2021 U.S. Multimedia Quality and Satisfaction Study is based on responses from 110,827 purchasers and lessees of new 2021 model-year vehicles who were surveyed after 90 days of ownership.

The study was fielded from February through July.

More details about the study can be found via this website.

NIADA CPO program gets pulled into NYC dealer investigation

The National Independent Automobile Dealers Association’s certified pre-owned program has been brought into an investigation by the NYC Department of Consumer and Worker Protection (DCWP) of multiple dealerships in New York City.

On Wednesday, DCWP commissioner Peter Hatch announced cases against two dealer groups — Kings Autoshow and JF Motors — which operate a total of five dealerships in Brooklyn and Queens. Hatch said these dealerships have been engaging in deceptive and unlawful trade practices that “preyed on vulnerable New Yorkers, as well as consumers from across the tristate area. “

DCWP’s cases, which will be heard at the city’s Office of Administrative Trials and Hearings (OATH), allege thousands of violations, including violations of the city’s new laws and rules designed to prevent “predatory conduct by the industry.”

In its case against Kings Autoshow, which operates two Brooklyn Mitsubishi locations, DCWP is charging the company with more than 7,000 violations and seeking more than $50,000 in restitution for 34 consumers, civil penalties and revocation of both of its dealership licenses.

The case against JF Motors includes Automania, Luxury Automotive Club and the now-closed World Auto, all of which are in Queens. DCWP is charging the JF Motors group of dealerships with more than 9,000 violations and seeking more than $100,000 in restitution for nine consumers, civil penalties and revocation of its two remaining licenses.

DCWP is also seeking to hold the respective owners and Brooklyn Mitsubishi’s general manager personally liable for the violations.

“These dealerships repeatedly victimized their customers and violated consumer protection laws,” Hatch said in a news release. “We are taking action to a put a stop to their exploitative practices, obtain restitution for the consumers they harmed, and to revoke their licenses so they cannot do this again.”

Among the specific allegations, DCWP highlighted:

1. Using false advertising to lure consumers and charging more than advertised

DCWP alleged both companies used deceptive advertising to lure customers to their dealerships and then illegally sold vehicles at prices well above the advertised prices.

For example, the agency said one consumer saw a 2017 Jeep Grand Cherokee advertised by Brooklyn Mitsubishi on CarGurus.com for $27,994. She visited the dealership and, after taking her down payment, Brooklyn Mitsubishi “rushed her through signing all the paperwork and ultimately charged her $36,585 for the automobile, or $8,500 above the advertised price,” according to DCWP.

The agency said both Brooklyn Mitsubishi dealerships persistently advertised “expired” prices with false claims stating, “the price you see is the price you pay” and “no dealer fees” that weren’t honored when consumers got to the dealership. DCWP added the stores also falsely advertised accessories, warranties and add-on products that did not come with the vehicle.

Meanwhile, DCWP said JF Motors’ dealerships frequently marketed their vehicles as certified pre-owned through the program offered by NIADA, even though JF Motors did not conduct the required 125-point inspection, give buyers the promised 10-year/100,000 warranty, or provide the vehicle history report for each vehicle.

“JF Motors inflated prices by adding fake fees, even charging consumers a fee for the fake NIADA certification,” officials said.

2. Misleading consumers about financing

DCWP said the Brooklyn Mitsubishi dealerships had a practice of “luring” consumers with lower credit scores by promising “guaranteed approval” for financing and pre-approval for financing from a “fake finance company.”

3. Conducting other illegal activity

The agency said the Brooklyn Mitsubishi dealerships misled consumers about warranties, executed illegal contracts, failed to maintain required records, failed to respond to DCWP’s subpoenas and submitted false license applications to DCWP.

Officials added that the JF Motors dealerships used illegal contracts, required consumers to buy service contracts that either did not exist or had less coverage than promised, overcharged out-of-state buyers for title and registration fees and failed to provide contracts and other documents to consumers in Spanish even though the deal was negotiated in Spanish.

NIADA response

After the allegations surfaced, NIADA chief executive officer Bob Voltmann offered this statement on Thursday via a news release.

“The National Independent Automobile Dealers Association does not condone illegal or unethical practices,” Voltmann said. “We continually strive to strengthen the integrity of our industry-leading CPO program through enhanced technology and training.

“The all-new NIADA CPO 3.0 program will guard against fraudulent and deceptive practices through a digital inspection process and will require participating dealers to complete training and acknowledge NIADA’s Code of Ethics,” he continued.

With the reworked program, NIADA and its board of directors said they are helping association members better meet the needs of their customers. The association highlighted that the improvements include a technologically advanced platform that provides consumers multiple layers of protection against fraud.

“The modernized NIADA CPO program uses multi-level vetting to assure car buyers that the vehicles meet certified standards. It includes tighter standards for vehicles to earn the certified designation, while allowing older, higher-mileage units to qualify for limited coverage in the newly created verified pre-owned category,” the association said in the news release.

“The updated program also employs the latest technology to upgrade the vehicle inspection to a tamper-proof 200-point digital process,” NIADA added.

Irate customers

The DCWP news release contained comments from two customers who described their experiences with Brooklyn Mitsubishi.

Jefferey Williams said: “I was looking for a good experience in buying my very first car. Instead, I was taken advantage of and cheated out of my hard-earned money. No one should ever have to go through this with any used car dealership, especially if it’s their first time.”

Karinie Olivero said: “Brooklyn Mitsubishi made it clear that they were not on my side the moment I walked through their doors. There was no explanation of the car-buying process and I didn’t even receive my paperwork on the same day. I felt used, robbed, betrayed and unhappy with how they treated me. It was very troubling as a consumer and as a hard-working New Yorker to go through this kind of treatment.”

DCWP said it currently licenses 476 dealerships and has received more than 10,000 complaints about the industry since 2014.

In that same period, DCWP said it has conducted more than 4,500 inspections of dealerships and issued more than 1,600 violations, most of which were for failure to post required signs, parking or storing cars on sidewalks and public roadways and missing price disclosures.

As a result of mediating complaints, charging businesses with violations of the applicable law and rules, and executing settlements, DCWP said it has secured nearly $3.4 million in consumer restitution and more than $5.5 million in fines against dealerships since 2014.

Auto Remarketing’s 2021 CPO Dealer of the Year: Roger Beasley Mazda South

At Roger Beasley Mazda South and its sister stores within the Roger Beasley Imports group, certified pre-owned is not a last-ditch effort or a “save-a-deal” strategy. 

In fact, it’s presented right up front as a viable option — even when the customer is looking for a new car.

“On the first or second pencil, however you would like to look at it, with a new car or a used car, the salesman will go out and get a comparable bid,” Jim Bagan, who is vice president of the group, said in an interview with Auto Remarketing.

“So, if they’re looking at a new CX-5 Touring edition, we will show them that same Touring edition that we have available in the CPO,” he said. “One, to show the value walk proposition between new and used. And two, just to make sure that …

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CPO still ahead of record 2019, but margin narrows

Certified pre-owned vehicle sales took a tumble in August, but remain just under 2% ahead of the record 2019 pace.

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Up 15% year-to-date, CPO sales on track for best year ever

The certified pre-owned vehicle market continues to rocket toward what would be the 10th record year in the past 11.

CPO sales through seven months are up more than 4% from 2019, which was the best year ever for certified, and are beating 2020 figures by 15%.

That’s according to a Cox Automotive analysis of Motor Intelligence data, which indicates there have been 1,712,320 CPO sales year-to-date.

July CPO sales of 248,748 were down 2% year-over-year, but take that with a grain of salt: July 2020 was amid the surge in the used-car recovery.

What Cox considers to be a “much more relevant comparison” is the fact that last month’s certified sales beat July 2019 figures — a “more normal period” — by 5%.

Certified sales in July beat June figures by 4%, the company said.

Looking at some of the individual brands reporting CPO results, Volvo sold 3,325 certified vehicles in July and has moved 24,168 CPO units so far this year.

Mazda moved 6,704 certified vehicles last month, which was down 3% year-over-year. However, last month was its second-best July for CPO on record, behind July 2020.

In its analysis, Cox Automotive said that Kia showed the most growth in certified sales among non-luxury brands, with its CPO numbers up 18% year-over-year in July.

Cox pointed out that Toyota and Volkswagen saw certified sales fall more than 5%.  Meanwhile, Alfa Romeo had the biggest spike among luxury brands (up 43%), the analysis said.

As for the overall CPO market, Cox is seeing some positive signs for the future.

“Near-record low new-vehicle inventory and record-high prices will keep certified pre-owned units as very attractive alternatives,” Cox said. “Credit conditions also remain favorable, as it remains easier to get a CPO loan than it was a year ago, and lower average interest rates on CPO loans help soften the impact of higher prices.”

After first half growth, CPO car sales on pace for record year

Though the buying “frenzy” slowed last month, certified pre-owned sales in the first half of 2021 beat year-ago figures by 18% and bested first half-half figures from 2019 — a record year — by 4.3%.

That’s according to a Cox Automotive analysis of Motor Intelligence data included in a Data Point report this week.

Specifically, there were 1,463,571 CPO sales in the first half of the year, Cox Automotive said. That beats the record pace of

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After 2020 blip, CPO vehicle market back on record pace

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CPO vehicle sales outpacing record 2019 by 5%

Certified pre-owned vehicle sales in 2021 have come out of the gate surging ahead of the record pace set two year ago.

In 2019, which was the strongest year ever for the certified pre-owned vehicle market, there were 910,578 CPO sales in the first four months of the year.

The first four months of 2021 beat that sum by more than 45,000 units.

According to a Cox Automotive analysis of Motor Intelligence data, there have been 956,070 certified sales year-to-date.

That beats the year-ago pace by 29% and is 5% stronger than the tally through four months of 2019.

And last month’s certified sales were more than double the sum from April 2020.

Specifically, there were 259,242 CPO sales in April, up from 127,068 a year ago, according to Cox’s analysis.  Last month was also 25,702 units stronger than April 2019.

However, April was softer than the record-breaking 286,061 CPO sales in March, Cox Automotive said.

Toyota, Honda, Chevrolet, Ford and Nissan combined for a 44% CPO market share in April, Cox noted. The first three of those brands represented over a third of the market last month and are the segment’s largest, the company said.

Elsewhere, Mazda had its strongest April ever with 6,880 CPO sales, according to the automaker. That beat year-ago figures by 187%.

Volvo reported that it had 3,511 certified sales in April and has moved 13,021 CPO units year-to-date.

Overall used-car sales

Looking at the overall used-vehicle market, Cox estimated there was a 69% spike in sales last month compared to April 2020. It pegged the overall used-car SAAR at approximately 41.0 million last month, versus 40.5 million in March and 23.6 million in April 2020.

As far as used-car sales specifically involving a dealer, Cox said the retail used SAAR last month was an estimated 22.4 million. In March, it was 22.2 million. A year ago, it was 12.5 million.

In late April, TrueCar was forecasting 3.4 million used sales for the month. That sum would be 6% softer than March, but mark a 58% increase from April 2020.

Carzato enhances online sales tool to boost CPO retailing

Carzato understands how valuable certified pre-owned vehicles are in your dealership inventory.

To help stores get the most for those units at retail, the automotive online services provider recently rolled out its certified pre-owned vehicle feature, allowing dealerships to sell certified units online utilizing its cross-tier and brand-customizable online vehicle-buying tool that routes high-intent shoppers directly to dealerships.

For the first time, Carzato explained dealerships can use its Online Retailing Experience platform for all of their customers' pre-owned buying needs. This platform includes what the company calls a “consistent and efficient” retail experience across stores’ brand website, dealer website, social media, CRM email, search, display and video campaigns.

To help augment the package even more, Carzato partnered with Auto Lead Star to offer media buying services for dealerships.

“Utilizing the best-in-class online car dealership advertising together with state-of-the-art artificial intelligence, car dealerships are able to maximize their sales both on the lot and online — regardless of COVID-19 or any future unforeseen circumstances,” Carzato co-founder and chief executive Javier Ruiz said in a news release.

In a recent dealership case study orchestrated by the company, the implementation of Carzato’s digital retailing solution was shown to increase dealers’ close rate to sale by 18%, decrease their cost per lead by 81%, and skyrocket their total number of leads by 382%.

Carzato pointed out that it’s able to provide a unique platform that can utilize online technology together with AI to “level the playing field of a highly competitive car market.”

Carzato’s proprietary digital retailing experience is fully scalable, modular and includes:

— Customizable high-converting landing pages and CTAs

— VIN-specific dealer pricing

— Dealer choice of trade-in valuation and F&I products

— Dealer-customized service and protection plans and pricing

For more information, visit www.Carzato.com.

Dealers with most CPO vehicle sales in 2020

To recognize the dealers leading the certified pre-owned car business, the April issue of Auto Remarketing will feature our annual special section spotlighting "The Best CPO Dealers in the USA." 

We reached out to automakers across the industry and requested their respective top 10 certified pre-owned dealer lists based on full-year 2020 sales.

The full brand-by-brand CPO sales rankings can be found below. Listings include dealer name, city/state (where provided) and 2020 CPO sales.  

(Data/information provided by the individual brands/automakers)

ACURA

AUDI

BMW

FORD

HONDA

HYUNDAI

INFINITI

JAGUAR

KIA

LAND ROVER

LEXUS

MAZDA

NISSAN

STELLANTIS

TOYOTA