Through the end of March, qualified shoppers can get a certified pre-owned GMC Acadia or Terrain with 1.9-percent interest for up to 36 months. Autotrader describes that as one of many strong offers that automakers and dealers will be rolling out as they gear up for one of their prime selling stretches of the year.
Warmer weather is coming, and that could mean more warmth from dealers that are ready to drive sales. Car shoppers during this time should potentially check out certified pre-owned vehicles, which Autotrader says is part of a growing market in recent years.
“To kick off the spring selling season, dealers will be rolling out specials on new cars to attract customers, but car shoppers looking for a good deal should consider a certified pre-owned vehicle,” Autotrader executive editor Brian Moody said in a news release. “Automakers continue to back their CPO programs by offering favorable pricing, financing and warranty coverage on a great selection of vehicles. Customers can drive off the lot this March with a car that looks as good as new but has a lower monthly payment.”
Autotrader editors say the following deals can help shoppers in March find a certified pre-owned vehicle that is best for them.
In addition to the Acadia and Terrain mentioned earlier, GMC's certified pre-owned program offers six years or 100,000 miles of powertrain coverage from the original sale date, according to Autotrader, and that includes an extra year of comprehensive warranty coverage.
For Jaguar's certified pre-owned program, the automaker is offering qualified shoppers 0.9-percent interest for up to 24 months through the end of March on all CPO 2017 F-Pace models. Drivers can also get 3.9-percent interest for up to 36 months. Jaguar offers comprehensive coverage for up to seven years or 100,000 miles from the original sale date.
Lincoln's certified pre-owned program offers up to seven years or 100,000 miles of powertrain protection, plus an additional year of comprehensive coverage over the standard factory warranty, according to Autotrader. But Autotrader adds that Lincoln’s CPO program is available with another “alluring benefit” that could give cost-conscious shoppers a reason to consider a luxurious Lincoln model: That benefit is 2.9 percent interest for up to 72 months on all Black Label models. Aside from Black Label, 4.75-percent interest is available on other Lincoln models for up to 66 months.
Mazda offers powertrain coverage for up to seven years or 100,000 miles from the original sale date as part of its certified pre-owned program. That includes one-year extension of the bumper-to-bumper warranty. Mazda is enhancing its CPO warranty in March, with a special offer of 0.9-percent interest for up to 36 months on all CPO models to qualified shoppers.
Automakers’ and dealers’ commitment to CPO in March includes the Mercedes-Benz certified pre-owned program. The current program offers one year of comprehensive coverage with no mileage limit, and buyers can pay an extra fee to extend that coverage for additional years. In March, Mercedes-Benz shoppers will see several incentive offers for certified pre-owned vehicles. They can pay 1.99-percent interest for up to 36 months on many CPO models, and that includes popular vehicles such as the CLA, the GLA, the C-Class, the GLC, the E-Class, the GLE, the S-Class and the GLS.
Subaru's certified pre-owned program offers coverage that lasts for seven years or 100,000 miles from the original sale date, but the program doesn't offer any additional comprehensive warranty coverage. “That’s forgivable this month,” Autotrader writes, noting that through the end of March, qualified shoppers can get 1.99-percent interest for up to 36 months on all certified pre-owned Subaru models. Autotrader notes that is “an excellent deal” on a pre-owned vehicle.
Autotrader writes that Toyota's certified pre-owned program is strong, featuring one year of comprehensive coverage along with the standard warranty coverage and seven years or 100,000 miles of powertrain coverage. In March, qualified CPO Camry or Corolla shoppers can get 3.9 percent interest for up to 36 months. Autotrader believes that is a strong deal as interest rates rise.
Different Volkswagen certified pre-owned vehicles receive different coverage, but buyers can add an additional two years or 24,000 miles to their factory warranty. Shoppers can get a better deal than usual on a CPO Volkswagen in March, according to Autotrader. Qualified shoppers can receive 3.99 percent interest for up to 60 months, which Autotrader says is a desirable long-term deal for a pre-owned car.
There’s a new player in the certified pre-owned vehicle space: Lamborghini.
Automobili Lamborghini announced the launch of Selezione Lamborghini Certified Pre-Owned last week. It’s a global certification program for Lamborghini dealerships and service centers, and a company spokesperson confirmed it will be available in the U.S.
The CPO program will be available at all 34 of Lamborghini’s U.S. retail locations, the spokesperson said.
Selezione Lamborghini launched in February, with global rollouts occurring throughout 2019.
“This is an important new program to support the growing volume of pre-owned Lamborghini cars sold through the authorized dealer network,” Automobili Lamborghini chief commercial officer Federico Foschini said in a news release.
“In line with our growing production volumes, an increasing number of clients are deciding to buy into the Lamborghini marque, both new and pre-owned models,” Foschini said. “Today, Lamborghini is recognized as a benchmark in the segment in terms of quality and exclusivity.
“The purpose of Selezione Lamborghini is to now make these standards also available for those who want to take the first significant step into the Lamborghini world with the purchase of a pre-owned Lamborghini.”
Super sports cars must have mileages of 43,500 miles or fewer and 84 months or fewer of use to be eligible for certification; Urus models can 62,000 miles or less with 120 months or less of use.
Regular scheduled maintenance under Lamborghini service schedules is a requirement for eligibility, as is a 150-point inspection and full diagnostic and road tests.
The Lamborghini CPO vehicles come with a minimum 12-month warranty covering parts and labor. That can be extended out to 24 months and is transferrable. There is also roadside assistance provided during the warranty period.
The CPO program also provides a free six-month checkup.
“All Lamborghini cars are sold from new with a 3-year warranty that can be extended up to five years by the customer at the moment of purchase. Further warranty extension and maintenance option will also be offered as part of the Selezione Lamborghini program,” the company said in a news release.
As part of Auto Remarketing’s annual issue honoring The Best CPO Dealers in the USA, we reached out to automakers across the board to gather their respective top 10 lists of dealerships with the most certified pre-owned vehicle sales.
Those brand-by-brand sales rankings, based on full-year 2018 sales, can be found below.
Listings include dealer name, city/state (where provided) and 2018 CPO sales.
Acura
Paragon Acura (Woodside, N.Y.) 831
Vandergriff Acura (Arlington, Texas) 576
Hendrick Acura (Charlotte, N.C.) 544
Muller's Woodfield Acura (Hoffman Estates, Ill.) 513
Jay Wolfe Acura (Kansas City, Mo.) 500
Acura of Fremont (Fremont, Calif.) 498
Acura Turnersville (Turnersville, N.J.) 496
Niello Acura (Roseville, Calif.) 494
McGrath Acura of Westmont (Westmont, Ill.) 482
Acura Carland (Duluth, Ga.) 451
BMW
Stevens Creek BMW 2,274
BMW of Gwinnett Place 2,052
United BMW 1,817
Chapman BMW 1,659
Crevier BMW/MINI 1,603
Hendrick BMW/MINI 1,510
BMW/MINI of Monrovia 1,354
BMW/MINI of San Antonio 1,350
BMW of Fort Lauderdale/Lauderdale MINI 1,252
Vista BMW/Vista MINI 1,238
Fiat Chrysler
Bill Luke Chrysler Jeep & Dodge (Phoenix) 2,421
Stew Hansen Dodge City Jeep (Des Moines, Iowa) 1,451
Westbury Jeep Chrysler Dodge (Jericho, N.Y.) 1,240
Yark Chrysler Jeep Dodge (Toledo, Ohio) 1,224
Security Dodge Chrysler Jeep Ram (Amityville, N.Y.) 1,187
Performance Chrysler Jeep Dodge (Columbus, Ohio) 1,145
Ed Voyles Chrysler Jeep Dodge (Marietta, Ga.) 1,099
Luther Brookdale Chrysler Jeep (Brooklyn Park, Minn.) 1,090
Firkins Chrysler Jeep Dodge Ram (Bradenton, Fla.) 1,083
Lindsay Chrysler Dodge Jeep Ram (Manassas, Va.) 1,016
Honda
Paragon Honda (Woodside, N.Y.) 2,653
Norm Reeves Honda Superstore (Cerritos, Calif.) 1,825
Lindsay Honda (Columbus, Ohio) 1,549
Planet Honda (Union, N.J.) 1,475
David McDavid Honda of Frisco (Frisco, Texas) 1,402
DCH Paramus Honda (Paramus, N.J.) 1,382
Galpin Honda (Mission Hills, Calif.) 1,313
Rice Case Honda (Davie, Fla.) 1,312
Honda of New Rochelle (New Rochelle, N.Y.) 1,231
Hamilton Honda (Hamilton, N.J.) 1,222
Hyundai
Hyundai of New Port Richey 1,129
Jim Ellis Hyundai 953
Rick Case Hyundai 820
Luther Bloomington Hyundai 687
Suntrup Hyundai 632
Napleton's Hyundai 610
First Hyundai 609
Stew Hansen Hyundai 589
Danbury Hyundai 579
Crestmont Hyundai 558
Infiniti
Sewell Infiniti (Dallas) 928
Sewell Infiniti of North Houston (Houston) 897
Infiniti Gwinnett (Duluth, Ga.) 836
Roswell Infiniti (Roswell, Ga.) 776
Crest Infiniti (Frisco, Texas) 753
Southwest Infiniti (Houston) 678
Grubbs Infiniti (Grapevine, Texas) 618
Austin Infiniti (Austin, Texas) 589
West Houston Infiniti (Houston) 502
Infiniti of Nashua (Nashua, N.H.) 450
Jaguar
Jaguar DFW 254
Hennessy Jaguar 212
Jaguar Fort Lauderdale 165
Jaguar Palm Beach 160
Jaguar Paramus 156
Jaguar Sarasota 155
Imperial Motors Jaguar of Lake Bluff 137
Rusnak / Pasadena 136
Warren Henry Jaguar 135
THE COLLECTION 132
Kia
Kia of Carson 1,019
Kia of Downtown 952
Kia of Irvine 846
Luther Kia of Bloomington 680
Garden Grove Kia 608
Jim Shorkey Kia 592
Suntrup Kia 569
Orlando Kia East 559
Orlando Kia West 546
Kia of Des Moines 545
Land Rover
Land Rover Parsippany 397
Land Rover Buckhead 393
Land Rover North Dade 391
Land Rover Glen Cove 364
Land Rover Paramus 346
Land Rover Encino 335
Land Rover San Antonio 297
Land Rover North Atlanta 289
Land Rover San Diego 282
Land Rover South Dade 277
Mazda
Wayne Mazda (Wayne, N.J.) 662
John Hine Mazda (San Diego) 605
Mazda South (Austin, Texas) 580
Morries Minnetonka Mazda (Minnetonka, Minn.) 519
Roger Beasley Mazda Central (Austin, Texas) 480
Piazza Mazda of West Chester (West Chester, Pa.) 460
North Park Mazda (San Antonio) 458
Brown's Chantilly Mazda (Chantilly, Va.) 442
Brown's Fairfax Mazda (Fairfax, Va.) 438
Tustin Mazda (Tustin, Calif.) 423
Nissan
Trophy Nissan 2,031
Peoria Nissan 1,540
Sutherlin Nissan 1,149
Nissan of McKinney 1,134
Courtesy Nissan of Tampa 1,094
Sterlin McCall Nissan 1,028
Round Rock Nissan 959
Universal City Nissan 937
Al Piemonte Nissan Inc. 916
Eden Prairie Nissan 903
Volkswagen
Luther West Side Volkswagen 1,129
Volkswagen Kearny Mesa 792
Alexandria Volkswagen 775
Burnsville Volkswagen, Inc. 766
Lindsay Volkswagen of Dulles 647
Hall Volkswagen 629
Vorderman Volkswagen 539
David Maus Volkswagen 502
Gunther Volkswagen of Coconut Creek 497
Campbell Volkswagen of Edmonds 493
Volvo
Autobahn Motorcars 423
Prestige Volvo 392
Volvo Cars Mall of Georgia 377
Crest Volvo Cars 358
Borton Volvo Cars 324
Hendrick Volvo Cars of Charleston 305
Smythe Volvo Cars 302
Niello Volvo Cars Sacramento 273
Stillman Volvo Cars 268
Park Place Volvo 253
To recognize the dealers leading the certified pre-owned car business, the Feb. 15 edition of Auto Remarketing features our annual special section honoring The Best CPO Dealers in the USA.
We reached out to automakers across the CPO spectrum and requested their respective top 10 certified dealer lists based on full-year 2018 sales.
Auto Remarketing also connected with a handful of these top-selling dealers and asked them about the strategies that made them so successful in the CPO market.
Here's what a few of them had to say, via brief emailed Q&As:
How does your store boost the awareness/understanding of CPO among consumers?
- “Our store boosts the awareness/understanding of CPO among consumers by constantly training our sales people on the value of a certified pre-owned car. They need to establish what sets a Nissan CPO car apart from just a Nissan pre-owned car.
“For example, our salespeople know how to explain the Carfax, service comm. (vehicle history), 167-point inspection process, reconditioning, customer benefits (seven-year/100,000-mile powertrain warranty), 24-hour roadside assistance and courtesy transportation.
“We also certify all pre-owned Nissans that we sell. A great merchandising plan also creates customer awareness. We use the point-of-purchase materials that Nissan makes available to us such as windshield stickers and license plates that say ‘certified.’ With this successful, plan not only do we sell more pre-owned Nissans we also have a higher gross profit on the sales and a higher per copy ran in finance.” – Michael Spinazze, General Manager, Sutherlin Nissan of Fort Myers
- “The biggest way we go about boosting awareness about CPO to consumers is training the sales people to explain the benefits and advantage of buying a CPO. Many in the public do not know the benefits of purchasing a CPO. And educating the consumer is important. I think the salesman is the most important part of this for overall bigger CPO sales.” – Bryan Blagg, Used Car Manager, Kia of Irvine
To what degree does CPO serve as an entry for newcomers/aspirational buyers to the Land Rover brand?
- “The CPO business here at Land Rover Parsippany is an integral part of our sales strategy. Its serves as an effective way to cycle through our Land Rover service loaners quickly and allows many first-time Land Rover owners to ‘step up’ into the brand, primarily on the Discovery Sports and Evoques.” – Bill Gonyea, General Manager, Land Rover of Parsippany
How has the increase in off-lease supply impacted your CPO operations?
- “The increased availability of off-lease Mazdas has helped us better align our Mazda certified inventory with the demands of our customers. By stocking the right mix of popular models and colors, we’ve been able to drive more customers to the dealership. Having the right mix of CPO inventory has also provided our sales team with a great alternative solution to offer our budget-conscious new-car customers.” – John Hine, John Hine Mazda
How do you raise awareness and educate the consumer about the benefits of CPO at your stores?
- “Whether customers inquire electronically, via phone of in person, our process of educating consumers about benefits of CPO remains consistent. Customers are informed that:
– CPO vehicles go through multi-point inspection and reconditioning process
– CPO vehicles are hand-picked, and only vehicles in best condition qualify
– CPO vehicles have extended warranty protection
– CPO vehicles qualify for low-interest financing
– CPO vehicles come with free maintenance
– CPO vehicles come with satisfaction guarantee exchange policy.
“Once consumers choose (to) visit our store and demo the CPO model, we make sure that we practice what we preach.” — Dragan Cvorovic, General Sales Manager, Infiniti Of Gwinnett
- “The story on CPO is simple actually. Whether the customer is here at the store, internet lead or a phone customer, the story is the same — no deviation. Dominating the inspection checklist and educating the value of each component of the checklist is very important.
“Sharing real-world cost of the investment that was made in each section of the CPO process. Not being afraid to share your R.O. with the customer to give them the added comfort of what was spent — i.e. four tires or two; front brakes or rear brakes; exterior investment cost — is a big factor that plays into CPO, as well.” — Rob Pruett, General Sales Manager, Roswell Infiniti of North Atlanta
The full rankings of the top-selling CPO dealers in the US can be found here.
Through the end of February, Audi is offering buyers all of its certified pre-owned models from 2013 to 2017 at 1.99-percent interest for up to 24 months.
That is one of what Autotrader describes as the best CPO deals to help shoppers find and purchase a pre-owned vehicle this month.
Autotrader notes that car buyers at this time of year can find a good deal on a vehicle. Dealerships should have a strong selection in February on certified pre-owned vehicles because of year-end trade-ins and vehicles coming off-lease.
“Certified pre-owned vehicles should be high on every shopper’s list, since they come backed with warranties and still have years of useful life left, offering a like-new vehicle at a lower price,” Brian Moody, executive editor for Autotrader, said in a news release.
Following are some of the best CPO deals in February, according to Autotrader editors:
BMW’s certified pre-owned program: The automaker’s certified pre-owned warranty is more appealing than usual because of an incentive from BMW, according to Autotrader. Through the end of February, qualified shoppers can get 1.99-percent interest for up to 24 months on a certified, pre-owned 2015 or 2016 model. That is a good deal for a used car, even if the term is shorter than usual, Autotrader said.
The program covers vehicles for one year with no mileage limit beyond the original factory warranty, and drivers who want to add additional coverage can do so for an extra fee, according to Autotrader.
Buick’s certified pre-owned program: The program offers six years or 100,000 miles of powertrain coverage, along with an additional year of bumper-to-bumper coverage from the expiration of the original warranty, according to Autotrader. Buick is currently offering 1.9 percent interest for up to 36 months to qualified shoppers for a certified pre-owned Encore or Enclave luxury crossover.
Autotrader scores Cadillac’s certified pre-owned program as having some of the best coverage in the luxury car space, with six years or 100,000 miles of comprehensive coverage from the original sale date. The compact ATS, the Escalade SUV and the SRX crossover are available with 2.9-percent interest for up to 36 months to qualified buyers. That is a good rate and a desirable term length, especially taking Cadillac’s available warranty into account, Autotrader said.
For Chevrolet’s pre-owned program, see Buick. Like its fellow General Motors brand, Chevrolet offers the same six years or 100,000 miles of powertrain coverage from the original sale date, along with an extra year of bumper-to-bumper coverage. Chevrolet is also offering 1.9 percent interest for up to 36 months to qualified shoppers on its Bolt electric hatchback, the Cruze compact, the Equinox and Traverse crossovers, the Malibu midsize sedan and the Volt plug-in hybrid.
Autotrader describes Land Rover’s certified pre-owned program as offering “excellent” coverage, with seven years or 100,000 miles of comprehensive warranty coverage from the original sale date. Autotrader says that is one of the longest terms in the industry. Land Rover is also offering various interest rate incentives, including 0.9 percent interest for up to 24 months for all models. Depending on the Land Rover model and model year, qualified shoppers can also get 1.9 percent, 2.9 percent or 2.9 percent for up to 36 months.
Nissan’s CPO program regrettably doesn’t offer any additional comprehensive coverage beyond powertrain coverage for up to 6 years or 100,000 miles, according to Autotrader. However, some incentives on the Altima sedan and Rogue crossover make the program especially strong in February, Autotrader said. Qualified shoppers choosing certified pre-owned versions of either models can get 3.9 percent interest for up to 60 months through the end of the month, which Autotrader describes as a good rate over such a long term for a used vehicle.
Toyota is offering powertrain coverage for up to six years or 100,000 miles as part of its certified pre-owned program, plus up to a year of comprehensive coverage. In February, a special interest rate is available to qualified buyers who decide on a CPO Camry or Camry Hybrid, with Toyota offering 3.9-percent interest for up to 36 months.
And now, back to Audi: In addition to the special incentive discussed earlier, Audi’s certified pre-owned program offers one year of additional comprehensive warranty coverage beyond the original factory warranty and if they wish, drivers can pay more to add extra coverage.
There was a bit of a slow start for the certified pre-owned car market at the outset of 2019, but that comes off what was the eighth straight record year of sales.
According to Cox Automotive, there were 2.70 million CPO sales in 2018, a 2.1-percent year-over-year gain. This marked another all-time high, and 2019 could see much of the same, with the market expected to reach 2.75 million sales, the company said in an analysis released last week.
This year started with 199,640 certified sales in the first month, which was 1.6-percent softer than January 2018 and 11 percent softer than December, according to Cox Automotive chief economist Jonathan Smoke. This was in line with the overall used-car market in January, Smoke said.
But again, the market remains strong. Cox Automotive attributes the CPO health to plentiful used-car demand and off-lease supply.
There were 3.85 million off-lease units in 2018, an 11-percent increase from 2017, the company said. This year, Cox Automotive is projecting a peak of 4.08 million off-lease vehicles, which would be a 6-percent gain.
Factors pushing used demand
As to why overall used-car demand is so high, Smoke said in a phone interview Tuesday that it boils down to two fundamentals.
“Where we are in the cycle for the market, you tend to have strengthening demand for used vehicles while the new-vehicle market is past its peak and starting to decline,” Smoke said. “Normally that’s related to affordability, primarily because at this point in the cycle, we have higher interest rates that are causing payments to go up much more quickly than they had been in prior years.
“And so, simply put, a consumer that has a fixed amount of money that they can afford to spend or even qualify for a payment is essentially having to look at a less expensive vehicle, in terms of the vehicle price, now than they would have, say, a few years ago,” he said.
“But this time, on top of the normal cycle influence that’s all about payment being related to higher interest rates, we also have the scenario of affordability dramatically getting worse simply from the vehicle expense in the new-vehicle market,” Smoke said.
“And that’s a function of the shift that we’ve been seeing to more expensive vehicle types, like pickup trucks and SUVs, but also the fact that even the more affordable cars today have much more technology in them, such that we’ve essentially seen twice the level of inflation in new-vehicle prices for the last couple of years. It’s showing no sign of slowing down.”
As for certified pre-owned sales, those won’t slow down either. Smoke said there’s at least more year of gains on tap, followed by a plateau at a high level.
“It’s certainly no longer showing the tremendous year-over-year growth that it once had. It, of course, is a function of how quickly the supply of nearly new vehicles that go into the CPO market, which are principally off-lease vehicles, are also slowing down its pace of growth … It’s inevitable that the market will reach a peak. We don’t think we’re there yet,” Smoke said.
“We think we have at least another year of growth in 2019. And then I think it is appropriate to call it a plateau because while we’re no longer going to see off-lease volumes drive growth in the market, we’re going to continue, from a historical perspective, at a fairly elevated level of off-lease supply for the foreseeable future,” he continued. “Leasing has now become a much more significant part of the market, and as a result, we can depend on it providing an ample supply of vehicles that can be CPO’d for the foreseeable future.”
Brand-by-brand rankings
As for the present, or recent past, Cox Automotive shared Motor Intelligence data indicating the brand-by-brand certified sales leaders in 2018. Toyota topped the list, with 345,000 CPO sales last year, followed by Honda at 265,000 sales, Chevrolet at 242,000, Ford at 221,000 at Nissan at 217,000.
Mercedes-Benz, which came in at No. 6 overall, led the luxury crowd with 217,000 certified sales in 2018.
“The CPO market is top-heavy with a few brands accounting for the majority of sales. Toyota is the largest player in the CPO market and accounted for 13 percent of all CPO sales in 2018,” Cox Automotive said in the analysis.
“Toyota along with Honda, Chevy, Ford and Nissan account for 48 percent of total industry CPO sales,” the company added. “Look for that to change as brands like Jeep, Volkswagen and Mazda make gains in CPO sales and increase their share of this market.”
A full rundown can be found here.
It’s the quintessential hook to selling a certified pre-owned car. It has been inspected and reconditioned (and practically guaranteed) “good as new,” or close to it.
And some more so than others.
In a set of lists released Tuesday morning, Autotrader shared what it considers to be the 10 Best CPO Cars for 2019 and the 10 Best CPO Luxury Cars for 2019.
With modern design, warranties and much of the same amenities, these rides come at a more affordable price than buying the same car new. And you might not be able to distinguish some of them from new, says Autotrader executive editor Brian Moody.
“As more features are added to today’s vehicles, new-car prices continue to rise, with even ‘affordable’ models costing as much as $35,000 or $40,000,” Moody said in a news release.
“Our list of ‘good as new’ vehicles can bring the car a consumer wants into the price range they want to pay,” Moody said. “These CPO vehicles are thoroughly inspected, covered by warranties and offer the latest designs, making it difficult to even tell the difference between their new car counterparts.”
The lists below, respectively, are the 10 “Must-Shop” CPO cars, broken down by mainstream and luxury models. The maximum price tag on cars for the mainstream was $40,000 and $65,000 for luxury vehicles.
The lists are ordered alphabetically and unranked.
Good as News: 10 Best CPO Cars for 2019
2015-2018 Chevrolet Tahoe
2016-2018 Honda Civic
2016-2018 Hyundai Sonata
2013-2017 Jeep Wrangler
2016-2018 Mazda6
2014-2018 Nissan Rogue
2015-2018 Ram 1500
2015-2018 Subaru Outback
2016-2018 Toyota Tacoma
2014-2018 Toyota Tundra
Good as New: 10 Best Luxury CPO Cars for 2019
2014-2018 Acura MDX
2015-2018 Cadillac Escalade
2017-2018 Chrysler Pacifica
2014-2018 Infiniti QX60
2017-2018 Jaguar F-Pace
2014-2018 Jaguar F-Type
2014-2018 Kia Cadenza
2015-2018 Lexus RC
2015-2018 Porsche Macan
2016-2018 Volvo XC90
As shown above, the non-luxury list is split fairly evenly between trucks/SUVs (six) and passenger cars (four). Auto Remarketing asked Moody if that was surprising, given how strong truck/SUV demand is over cars, and what he thought was driving that even distribution.
“It is surprising considering how the industry has been telling all of us how SUVs and trucks are king,” Moody said via email. “I think there are a lot of good cars out there and believe frugal shoppers, the kind likely to buy CPO, are in tune with the fact that many cars (coupes and sedans) are a better value given the better fuel economy on the whole and the fact that some sedans with similar equipment can be less expensive than SUVs.
“Also, I feel like Autotrader shoppers may be a little more practical and want what best does the job for a reasonable price versus what’s the coolest or fanciest vehicle,” Moody said.
“Remember, even if sedans drop all the way down to just 10 percent of the overall new-car market, that’s still hundreds of thousands of sales per year for some brands,” he said. “Finally, people who enjoy driving prefer sedans and coupes because of the lower center of gravity and better handling.”
Dealerships that eventually will have 2020 Toyota models in their inventory now have another feature to tout to potential buyers.
SiriusXM announced on Wednesday that it has reached what the company called a “landmark” agreement with Toyota that will expand the installation of SiriusXM to all Toyota models and trims sold in the continental U.S.
Officials said the expansion is expected to start with 2020 model year vehicles produced in the fall of this year. They added the agreement will result in SiriusXM becoming a standard feature as Toyota’s next generation head units are rolled out to Toyota cars, trucks and SUVs.
SiriusXM also mentioned the agreement extends the long-term relationship between the two companies into 2028.
Toyota customers will continue to receive a three-month introductory subscription to SiriusXM All Access, which is SiriusXM’s most expansive programming package and gives the subscriber access to SiriusXM both on the radio and via the SiriusXM app.
“This extension represents a milestone agreement between our two companies,” said Christopher Lam, senior vice president and general manager of automotive partnerships for SiriusXM.
“Our long-standing relationship with Toyota has helped grow SiriusXM to over 34 million subscribers, and we’re excited that Toyota will now offer even more customers access to all of SiriusXM’s exclusive, award-winning content,” Lam continued.
Of particular interest in the used-vehicle space, the companies highlighted customers who purchase or lease Toyota certified pre-owned vehicles will also continue to receive a three-month introductory subscription to SiriusXM All Access.
“We are committed to delivering our customers the features and services they want, and because of the strong demand we see for SiriusXM, both from our customers and dealers, we’re making SiriusXM standard across our entire model lineup,” said Steve Basra, vice president of connected technologies for Toyota Motor North America.
“By building SiriusXM into every model and trim level, it will enable us to deliver SiriusXM to more Toyota drivers than ever before,” Basra went on to say.
Last year, 53.7 percent of customers returned to market to purchase or lease another new vehicle from the same make they already owned.
Also, converting a customer from used to new can have an impact on loyalty rates.
More than 29 percent of used-vehicle owners who returned to market for a new vehicle during the 2018 model year purchased the same brand. In addition, customers returning to market with a certified pre-owned vehicle who purchased a new vehicle of the same brand did so at a rate of 38 percent.
All of that is according to an analysis by business information provider IHS Markit, which presented its IHS Markit Loyalty Awards on Tuesday during the Automotive News World Congress.
At the presentation, General Motors retained its position as the leader in automotive manufacturer loyalty, receiving the evening’s top award (Overall Loyalty to Manufacturer) with a loyalty rate of 68.3 percent.
Ford was the winner in the category of Overall Loyalty to Make, with a rate of 63 percent.
IHS Markit honored winners in more than 30 categories. Automotive News World Congress is held alongside press and industry days for the North American International Auto Show in Detroit.
The aforementioned 53.7-percent rate of customers purchasing or leasing a new vehicle from the same make they already owned sets a record in the IHS survey in loyalty rate, although the increase was just one tenth of a percentage point from last year. That demonstrates a flattening of loyalty rates in the industry after years of increases, according to IHS.
But IHS notes the competition is stronger than ever at the top.
In 2014, only one brand scored a loyalty rate above 60 percent, and five percentage points separated the top three brands. During the 2018 model year, only three percentage points separated the top three brands, and now two brands score a loyalty rate above 60 percent, with the third only two tenths of a point away.
IHS Markit reviewed additional influencers impacting loyalty metrics. Make loyalty rates among those who financed through captive lenders were 57.8 percent during the 2018 model year, more than eight percentage points higher than loyalty rates of those who financed with non-captive lenders (49.4 percent loyalty). Service experience also played a role, resulting in a 4.5-percentage-point lift in loyalty among owners who service within the dealer network.
Ford achieved the highest loyalty rate of all makes during the 2018 model year, winning the Overall Loyalty to Make award for the ninth consecutive year. The award for Highest Conquest Percentage for the 2018 model year went to Jeep for the second year in a row.
IHS Markit again honored Toyota for highest Ethnic Loyalty to Make among all ethnic groups combined, as it led in loyalty among all three ethnic groups: African-American, Hispanic and Asian.
Lincoln was a repeat winner in the Highest Loyalty to Dealer category, as more Lincoln owners returned to a Lincoln dealer for another Lincoln than any other brand during the 2018 model year.
Tesla was recognized for Most Improved Loyalty to Make for the model year and also was recognized for Most Improved Conquest Percentage during the 2018 model year.
A complete list of winners from the program is as follows:
|
Overall Loyalty Awards
|
Winner
|
|
Overall Loyalty to Manufacturer
|
General Motors
|
|
Overall Loyalty to Make
|
Ford
|
|
Highest Conquest Percentage
|
Jeep
|
|
Ethnic Market Loyalty to Make
|
Toyota
|
|
Overall Loyalty to Dealer
|
Lincoln
|
|
Hispanic Market Loyalty to Make
|
Toyota
|
|
Asian Market Loyalty to Make
|
Toyota
|
|
African American Market Loyalty to Make
|
Toyota
|
|
Most Improved Loyalty to Make
|
Tesla
|
|
Most Improved Conquest Percentage
|
Tesla
|
|
Segment Loyalty Awards
|
Winner
|
|
Luxury Compact CUV
|
Lincoln MKC
|
|
Luxury Full-Size SUV
|
Lincoln Navigator
|
|
Luxury Mid-Size CUV
|
Lexus RX
|
|
Luxury Mid-Size SUV
|
Lexus GX
|
|
Luxury Sport Car
|
Porsche 911
|
|
Luxury Traditional Compact Car
|
Lincoln MKZ
|
|
Luxury Traditional Full-Size Car
|
Lexus LS
|
|
Luxury Traditional Mid-Size Car
|
Lexus ES
|
|
Luxury Traditional Sub-Compact Car
|
BMW i3
|
|
Compact CUV
|
Chevrolet Equinox
|
|
Compact SUV
|
Jeep Wrangler
|
|
Full- Size Three-Quarter To One-Ton Pickup
|
Ford F-Series
|
|
Full-Size Half-Ton Pickup
|
Ram 1500
|
|
Full-Size SUV
|
GMC Yukon Denali XL
|
|
Mid-Size CUV
|
Subaru Outback
|
|
Mid-Size Pickup
|
Toyota Tacoma
|
|
Mid-Size SUV
|
Jeep Grand Cherokee
|
|
Mid-Size Van
|
Honda Odyssey
|
|
Sport Car
|
Volkswagen GTI
|
|
Mid-Size Sport Car
|
Ford Mustang
|
|
Traditional Compact Car
|
Honda Civic
|
|
Traditional Full-Size Car
|
Toyota Avalon
|
|
Traditional Mid-Size Car
|
Toyota Camry
|
|
Traditional Sub-Compact Car
|
Mini Countryman
|
With some shoppers looking to make quite an impression via a holiday gift purchase, Autotrader found a half dozen luxury brands are ramping up their certified pre-owned offerings in hopes of capturing some of that consumer zeal.
“Dealerships are highly motivated in December to close sales across their entire inventory, both new and used,” said Brian Moody, executive editor for Autotrader. “The high discount month means smart shoppers can find great options and value in certified pre-owned vehicles.
“CPO programs have many added-value perks and you can’t overlook the importance of the comprehensive inspection every CPO vehicle undergoes,” Moody added.
The editors at Autotrader have rounded up some of the best CPO deals to help shoppers find that perfect certified pre-owned vehicle that could make this December truly one to remember.
BMW
In December, BMW is offering a special deal for its CPO program. Through the end of the month, qualified shoppers can get 1.99 percent APR for up to 24 months on all certified pre-owned 2015 and 2016 BMW models.
Buick
This month, Autotrader stressed that Buick’s certified pre-owned program is especially alluring for the Enclave and Encore, as qualified buyers can get CPO versions of both models with 1.99 percent APR through the end of December.
Chevrolet
In December, Autotrader pointed out Chevrolet’s CPO program is even more attractive for drivers interested in the compact Cruze sedan, the Equinox crossover, the midsize Malibu sedan, the full-size Silverado pickup, and the midsize Traverse crossover, as the automaker is offering CPO versions of those models with 1.99 percent APR to qualified shoppers.
Land Rover
Autotrader highlighted Land Rover is offering a host of excellent financing deals this month for qualified shoppers, including 0.9 percent APR for up to 36 months on Discovery Sport, 3.9 percent for up to 36 months on Discovery and LR4, and 1.9 percent for up to 36 months on certain model years of the Range Rover Evoque.
Lexus
This month, Autotrader found that Lexus is offering an even better deal than usual for a certified pre-owned version of the RX crossover, as Lexus is offering CPO RX models with 3.9 percent APR for up to 60 months to qualified buyers — a deal that extends to the RX, the extended-length RX L and the hybrid-powered RX Hybrid.
Lincoln
During December, Lincoln’s CPO program offers qualified shoppers interested in financing a certified pre-owned Lincoln can get 3.49 percent APR for up to 66 months, “which is a good deal and an especially long term on a used vehicle,” according to Autotrader.
Mercedes-Benz
Through the end of December, drivers can get 1.99 percent APR for up to 48 months on most CPO models, including the CLA, the C-Class, the E-Class, the GLK, the GLC and more.
