CPO

Highlights of Canada's CPO Market

CARY, N.C. - 

In April, Subaru Canada more than doubled its certified pre-owned sales total from a year ago, continuing what have been rapidly improving sales in 2016.

Through four months, it has sold 613 CPO vehicles, compared to 241 in the same period of 2015.

April sales were up 206.5 percent, with 192 certified cars sold during the month.

The year began with Subaru selling 148 certified units, more than six times the amount it sold in January 2015 (22).

Audi sold 615 certified vehicles in April (up 7.1 percent) and 525 in March (up 7.6 percent). Through four months, Audi has moved 2,011 units (up 8.9 percent).

Last month was Audi’s best-ever April, pushing the year-to-date tally to a new high as well, Audi said.

Among other automakers in Canada reporting CPO sales, Toyota sold 2,525 CPO units for the month, up from 1,938 a year earlier.

Year-to-date Canadian CPO sales have reached 7,221 units, up from 6,497 in the same period of 2015.

In March, Toyota moved 1,921 certified vehicles, beating the 1,869 sold in March 2015.

Volvo Canada increased its CPO sales by 51.6 percent year-over-year in April, selling 194 vehicles.  The company moved 588 certified units in the first four months of the year, a 16.4-percent hike.  

Over at Volkswagen Canada, April sales were down 10.4 percent at 1,334 units sold, with year-to-date sales coming in at 4,892 (down 9.1 percent). VW moved 1,470 CPO vehicles in March (down 5.6 percent).

 Mercedes-Benz sold 4,101 CPO in Canada during April, keeping a “steady pace,” the company said. They also comprised 80.7 percent of total volume for the pre-owned division.

February brings CPO records, growth for luxury automakers

TORONTO - 

February brought with it certified pre-owned sales growth and a few records for some of Canada's luxury automakers.

First off, the Mercedes-Benz Pre-Owned division, which includes CPO sales, posted record-breaking gains of 14.2 percent, delivering 1,045 used vehicles. CPO sales, in particular, also reached an all-time high of 817 units sold for 78.2 percent of total used sales volume in February.

Audi Canada notched its best February for CPO sales last month, which brought the automaker to a year-to-date record, as well. Audi Canada sold 426 CPO units in February, which was up 10.4 percent from the 386 sold during the same month of 2015. Year-to-date, the automaker has sold 871 certified vehicles, up 11.1 percent over the same period last year.

Jaguar sold 23 CPO vehicles last month, up from 21 in February 2015. And so far this year, 53 CPO Jaguars have been delivered, up from 42 during the same period of 2015.

Land Rover sold 111 CPO vehicles in February, up from 86 during the month in 2015. So far this year, Land Rover has sold 208 certified vehicles, up from 153 sold in 2015.

Toyota Canada sold 1,403 CPO vehicles in February, up from 1,348 sold during the same month last year. Year-to-date, the company has sold 2,775 certified vehicles, up from 2,690 sold during the first two months of 2015.

Subaru Canada sold 119 CPO vehicles last month, up significantly from the 2015 performance of just 47 sales. So far this year, the automaker has sold 267 certified vehicles year-to-date, versus 69 sold during the same period last year.

Volkswagen Canada saw sales dip last month by 10.8 percent, selling 1,033 CPO vehicles, down from 1,158 sold during February 2015. So far this year, the company has retailed 2,088 CPO vehicles, down 10.5 percent from the 2,334 sold during the same period of 2015.

Volvo Canada’s CPO sales for February were flat year-over-year with 108 vehicles sold. Year-to-date, the company is 2 percent below 2015 with 235 Volvos sold as certified units.

 

 

2 luxury brands report best-ever January for CPO

TORONTO - 

Most automakers reporting certified pre-owned sales so far saw sales increase in January, and two luxury brands reported their best January ever.

Porsche Approved Certified Pre-Owned sales reached 101 units, which is a record for the month. This performance bested the previous January record of 77 CPO sales established the prior year.

The Mercedes-Benz Pre-Owned division, which include late-model and CPO sales, launched the year by selling a record total of 906 vehicles. This was up 4.1 percent year-over-year and was the best-ever January showing for the brand. CPO sales accounted for 74.7 percent of the total used sales volume.

Jaguar Land Rover Canada had a successful start to the year for CPO. The Jaguar brand sold 30 CPO vehicles in January, up from 21 sold during the first month of the year in 2015. Land Rover Canada sold 97 certified vehicles last month, up from 67 sold during January 2015.

BMW CPO sales were up year-over-year this past month. In January, BMW Canada sold 565 CPO vehicles last month, up 11 percent from the 510 sold in January 2015.

Toyota Canada’s certified sales were up slightly in January, with a total of 1,372 CPO vehicles delivered. Last year, the automaker sold 1,342 CPO vehicles during the first month of the year.

Volkswagen Canada sales were down a bit for CPO to start of the year. The company sold 1,055 certified vehicles last month, down 10.3 percent from the 1,176 sold during the same period of last year.

Volvo Cars of Canada sold 127 CPO vehicles in January, after selling 130 CPO vehicles in January 2015.

 

January Tradetracker: Trucks, trucks & more trucks

TORONTO - 

The top three most-appraised vehicles Canadian dealers saw last month were, you guessed it, trucks.

To be more specific, they were light-duty trucks, and you probably won’t be surprised which ones they are, because they’re the usual suspects: Ford F-150, GMC Sierra 1500 and Ram 1500.

That’s according to Dealertrack’s monthly Tradetracker report for the month of January. The top five weren’t all trucks, though; those three goliaths were followed up by the Toyota Corolla and the Dodge Grand Caravan, respectively, to round out the top five most-appraised vehicles, overall, by Canadian dealers last month.

Broken down by domestic and import dealer, the results of January’s Tradetracker report are more of the same. The domestic vehicle most appraised by domestic and import dealers? The F-150. The import vehicle most appraised by import dealers? The Corolla. And the import vehicle most appraised by domestic dealers is Mazda’s Mazda3.

From the other side, the vehicles most looked at by trade-in owners boils down to just two vehicles, regardless of dealer type: the F-150 (domestic) and the Toyota RAV4 (import).

The Tradetracker brand of the month for January, Honda, experienced a bit different vehicle interest last month. Canadian Honda dealers’ most-appraised vehicles last month were the Corolla, Hyundai Elantra and Grand Caravan, respectively. From the other end, the vehicles most looked at by trade-in shoppers at Honda store last month were the Honda CR-V and the Civic. 

AR Canada announces its 2016 CPO Dealer of the Year

MARKHAM, Ontario - 

Markham Ontario’s Don Valley North Toyota has been named the 2016 Auto Remarketing Canada CPO Dealer of the Year.

The dealership might sound familiar to readers, as the Toyota store was a runner-up for the 2015 award.

The team continued to excel in the certified pre-owned department over the course of 2015, notching this year’s award with a total of 855 certified units sold last year.

This is up from 801 CPO sales in 2014.

To get some insight into how Don Valley North Toyota continues to grow CPO sales, Auto Remarketing Canada reached out to George Sairoglou, director of used vehicles for the dealership.

Some of the best-selling CPO models at Don Valley North Toyota, Sairoglou said, are popular because the units “cater” to the store’s clientele. For 2015, the Corolla and RAV4 were in the No. 1 and No. 2 spots, respectively, followed by the Camry, Venza and Sienna, to round out the top five.

“These models are so popular because they cater to our clientele,” said Sairoglou. “The RAV4, Camry, Venza and Sienna caters to families. The Corolla caters to everyone for its known history of reliability from young and old.”

When asked about some of the factors that contributed to the store’s success in the certified arena in 2015, Sairoglou narrowed it down to four areas:

■ Better online presence

“Our online presence is an enormous part of our marketing success,” said Sairoglou. “We created a new photo booth to showcase the vehicles. We are constantly changing our prices daily to keep competitive in the changing market.”

■ Better online description pertaining to Toyota Certified Standards ■ All-new reconditioning process. All vehicles go online when they are completely ready for sale.

“We gladly spend the money to recondition the CPO unit to make it as close to new as possible,” Sairoglou said. “We pride ourselves on making that CPO unit one-of-a-kind.”

■ Marketing the Don Valley North Toyota Originals, which include vehicles originally bought, serviced and traded back to Don Valley North Toyota

All these factors and more contributed to CPO sales above 800 for 2015. Sairoglou noted dealership buy-in to the program is a big positive factor, as well.

“The team has embraced the value of the TCUV (Toyota Certified Used Vehicle) program and it has simply become the culture at Don Valley North Toyota Scion,” he said. “We also train with our people to build the value to the customer.”

And once those customers understand the benefits of the TCUV program, Sairoglou said the choice between late-model used or certified becomes easier, and the extra money needed to purchase a CPO unit becomes “justifiable.”

“The future opportunities come with better customer retention,” he said. “TCUV is an excellent gateway for customer retention. It also makes it easier to up-sell the customer to any extended warranty, accessories, winter tires, winter storage.”

And customer retention becomes even more important when trying to source CPO vehicles, especially in the case of Don Valley North Toyota. For this dealership, the best way of sourcing vehicles “is simply through the front door,” Sairoglou explained.

“We have a huge clientele, and we source our vehicles through our own data base. We do promotions for our lease customers (swap-a-lease, auto alert, customer appreciation events, focus on appraisals),” he said.

Obviously, Don Valley North Toyota is at the top of the CPO game. But there’s one thing Sairoglou says automakers could work on to make it easier for Canada franchised dealers to sell more CPO units: consumer education. Although consumers are catching on, CPO is still a new term to some.

“I believe the industry needs to improve on the education to our customers regarding CPO vehicles,” he concluded.

2016 Canadian new-vehicle sales to remain flat

TORONTO - 

Scotiabank released its Global Auto Report on Wednesday, predicting that new-vehicle sales in Canada will end up roughly the same as 2015’s tally of 1.9 million units.

Looking closer at the numbers, Scotiabank’s predicted 1.9 million units to-be-sold for 2016 is slightly higher than the 1,898,000 vehicles that were purchased in 2015.

In the report, the company says that it expects the sales volumes to remain largely flat for the year “as diverging trends between the industrial heartland and commodity producing regions balance each other out.”

Carlos Gomes, Scotiabank’s senior economist, summarized some of the expected factors to be at play that will be a theme in 2016.

"Car and light truck sales will continue to be supported by low interest rates and stimulative financial conditions around the world," Gomes said. "Economic activity and demand for new vehicles will continue to be buoyed by the strongest advance in Canadian non-resource exports since the new millennium, as well as by strengthening U.S. demand and a currency which recently fell below 70 cents (U.S.) for the first time since early 2003.

"Diverging trends between the industrial heartland and commodity-producing regions are expected to balance each other out in 2016, keeping volumes unchanged. Stronger employment growth and economic activity in the export-reliant manufacturing provinces will lift sales in these markets, but deteriorating fundamentals and weakening demographic and income trends will continue to pressure volumes in other regions."

Some other highlights of the report, according to Scotiabank, include the following:

  • Even with sluggish global demand, 17 out of Ontario's 21 manufacturing sectors posted double-digit export gains in 2015.
  • Broad-based manufacturing export gains are also expected to lift economic activity and vehicle sales in British Columbia and Quebec in 2016. Strengthening exports are particularly evident in British Columbia, with nearly half of all manufacturing industries posting export growth in excess of 20% in 2015.
  • In Alberta, new-vehicle sales declined 12 percent last year to 236,000 units. A further slide to 220,000 is projected for 2016, as oil companies continue to curtail their capital expenditures and the labour market weakens amid a large overhang in global crude oil inventories. 
  • Vehicle sales in the remaining provinces were in line with expectations last year. Volumes declined in Saskatchewan and Newfoundland, undercut by the downturn in the energy sector, and were unchanged in Manitoba and edged higher across the Maritimes.

Click here to check out the full report.

New Mitsubishi CPO program to serve as ‘tool’ for dealers

MISSISSAUGA, Ontario - 

A variety of factors made this December the ideal time to launch a certified pre-owned program for Canada’s Mitsubishi Motors.

That’s according to the new program’s management. Charles Plewes, lease manager at Mitsubishi Motor Sales of Canada Inc., told Auto Remarketing Canada, “Our dealers are good used-car dealers, but all dealers can use additional tools.”

And of course, a strong certified program acts as just that, helping dealers market pre-owned vehicles and purchase more quality used vehicles, as well.

Another factor that when into the program’s launch is the fact the automaker jumped back into the leasing market just two-and-a-half years ago, and now many vehicles stemming from that first round of leases are coming back into the remarketing cycle.

“We wanted to provide the dealers with the tools necessary to purchase the off-lease vehicles and help remarket those vehicles,” said Plewes, explaining the reasoning behind the December  launch.

Though the auction will serve as a sourcing pool for CPO vehicles, as well, this leasing program will prove beneficial for Mitsubishi dealers looking for quality used vehicles to certify.

“Our lease program has been running for over two years, and we are starting to have some returns now, some of them will be off-lease vehicles,” said Plewes. “Also, our program, unlike some other programs, is available to ex-daily rental vehicles, so Enterprise or other brands of ex-daily rental vehicles can qualify as long as they pass our inspection and reconditioning process. All of those sources will be available to our dealers.”

The Canadian branch of the Mitsubishi brand is one of the youngest and smallest of the mainstream car companies in Canada, having been first established in October 2002. And though it is joining the CPO game a little later than most, the market is primed for CPO sales, as used auction supply is expected to begin expanding in 2016.

The automaker has a partnership with F&I company LGM Financial Services Inc., who will be providing full administrative and sales support for the newly launched CPO program.

When asked why the automaker chose LGM for the job, Plewes said it came down to resources.

“We are a small company, and we have some limited resources, but we run ourselves very efficiently. And we needed a partner that could provide field support as well as extended warranty products that could support our CPO program,” Plewes said. “LGM was a company that was willing to customize a program to our needs and our dealers’ needs, and they provide the technical background as well as some field support for the program and extended warranty products, as well.”

A rush to sign up

The program launched on Dec. 1, and when Auto Remarketing Canada spoke with the CPO program’s management early that month, 59 of the automaker’s total dealer count of 91 in the country had already signed up to participate in the voluntary program.

“We conducted webinars across the country for all our dealers, and we had great participation, and we trained almost all the dealers through these webinars … It is a voluntary program for them, but they’re coming onto the program quite strong,” Plewes said.

The automaker is also planning some classroom training for dealers in the spring, and in-store training from field staff is also available to dealers.

“It’s early days. We have only been running for 15 days now (at the time of the interview). We already have certified vehicles; we already have some vehicles that have been sold certified, as well. Fifty nine dealers is two-thirds of our dealer body signed up, which is quite strong for the first 15 days.

“Our goal, obviously, is to have 100 percent of our dealers signed up, and we think that over the next several months, we will get very close to that goal and start building volume in the CPO marketplace,” Plewes shared.

Attracting CPO shoppers

The goal of the program is to bring a “new level of confidence” to Mitsubishi car shoppers, said Plewes.

“Mitsubishi has the strongest warranty in the marketplace, and that’s because our vehicles really are built better and backed better, and that theme runs very well with our used vehicles,” said Plewes. “We wanted our CPO program to build on that theme and have our customers be really confident that the used vehicle they are buying as a certified pre-owned Mitsubishi is the best pre-owned Mitsubishi available.”

As for what will be the most attractive elements of the CPO program to customers, Plewes said the 12-month key fob replacements as well as a complimentary SiriusXM subscription will be draws, but the exchange program is key to attracting customers.

“Customers are also very confident because there is a 10-day, 1,500-kilometer exchange program, so that provides a real safety net for the customer when they are purchasing a pre-owned vehicle,” Plewes said.

CPO customers are many times new to a brand and new to the dealership when they come in to check out certified vehicles, and many of these customers become loyal once they have a great CPO experience.

But there’s one key to securing a great CPO experience: treating these customers like new-car buyers.

“They are buying CPO because they want a new vehicle, and they want a new-car purchase experience in a vehicle that is less expensive. So this is a way our dealers can provide a like-new experience to get into the Mitsubishi brand, have all the benefits of the built-better backed-better vehicle with the better warranty,” said Plewes.

“So in our training, we did touch on the fact that dealers should treat CPO customers exactly the same way they treat a new-car customer — the same level of service, and respect when they are delivering the vehicle and selling the vehicle to a CPO customer,” he said.

Editor's Note: Stay tuned to the January/February issue of Auto Remarketing Canada Magazine, set to release next week, in which we delve further into the growing biz of CPO.

 

2015 CPO results start rolling in

TORONTO - 

Another year is in the books, and 2015 brought with it continued certified pre-owned sales growth for Canadian automakers.

As full-year CPO results started rolling in, many automakers were reporting double-digit year-over-year increases, not to mention record years.

For example, Audi Canada experienced a 17-percent year-over-year CPO sales spike in 2015. The automaker sold 6,625 CPO vehicles in 2015, which was up from 2014’s sales of 5,678. Audi Canada CPO management shared 2015 was a record year for the program.

December, another record CPO month for the automaker, contributed to the overall success seen in 2015. Audi Canada sold 547 CPO vehicles in December, up 28 percent from the 428 sold during the same month in 2014.

The Subaru Canada CPO program continues to gain momentum, with certified sales soaring over 2014 levels. In December, the automaker sold 190 CPO vehicles compared to 45 in December of 2014. For the full year, Subaru Canada delivered 1,489 certified vehicles. This is up from just 358 sold during 2014.

"We had an exceptionally strong finish to the year,” said Tom Opratko, manager, business management and certified pre-owned at Subaru Canada. “The final results clearly show that the program enhancements we made for calendar 2015 were embraced by both the dealers and our customers.”

The Mercedes-Benz Pre-Owned sales division, which includes CPO and late-model used vehicles, saw significant sales gains in 2015. The branch of the luxury automaker sold 1,193 used vehicles in December, and reached a grand total of 15,689 for the year. This marks a 9.7 percent year-over-year increase for the full year; the automaker sold 14,296 used units in 2014. CPO sales, in particular, reached a record of 12,660 units in 2015 for an increase of 13.8 percent year-over-year and account for 80.7 percent of the automaker’s total pre-owned sales.

Over at Volvo Cars of Canada, the automaker saw annual CPO sales growth exceed 20 percent. The automaker sold 1,672 CPO vehicles in 2015, up 25.2 percent from the 1,335 sold during 2014. Volvo Canada finished the year out strong, as well, with 125 certified vehicles delivered in December. This is up from 111 sold during December of 2014.

Porsche Canada finished off the year with 134 CPO deliveries in December. That brought the grand total of Porsche Approved CPO vehicle sales in Canada to 1,560, notching a record year for the program.

Volkswagen Canada ended up 1.2 percent ahead of 2014 for CPO sales. In December, the automaker sold 1,064 CPO vehicles, down 5.8 percent from the 1,129 sold during the same month of 2014. That said, sales for the year came in at 17,233, up from 17,023 sold during 2014.

Toyota Canada had a great year for CPO, as well. The automaker sold 1,311 CPO vehicles in December, up from 1,250 sold during the same month of 2014. For the full year, Toyota Canada sold 19,475 certified vehicles, up from 17,000 sold in 2014.

Mazda Canada reported 326 CPO sales in December to round out the year. The automaker sold 5,271 CPO vehicles in 2015.  

Editor’s Note: Stay tuned to Auto Remarketing Canada as more 2015 full-year CPO sales are reported. Also, make sure to check out our January/February magazine issue, set to come out later this month, which will feature a special CPO section.

Mitsubishi launches CPO program in Canada

MISSISSAUGA, Ontario - 

Mitsubishi Motors has officially launched a new certified pre-owned program that began rolling out across the country at participating Canadian dealerships at the beginning of December.

The company says the new program is designed to bring a “new level of confidence” and quality assurance to shoppers looking for a Mitsubishi car, crossover or sport utility vehicle.

The automaker has a partnership with F&I company LGM Financial Services Inc., who will be providing full administrative and sales support for the new program.

“Our pre-owned program is derived from the company’s key strength — an industry-leading warranty. It builds on the ‘Built Better, Backed Better’ qualities built into every Mitsubishi Motors vehicle,” said Tony Laframboise, vice president, sales & marketing at Mitsubishi Motor Sales of Canada.

“Our new Certified Pre-Owned Vehicle Program has the potential to offer up to a nine-year/180,000- kilometer comprehensive vehicle warranty, in addition to the 10-year/160,000 standard powertrain warranty that distinguishes Mitsubishi Motors in the Canadian marketplace,” he added.

Mitsubishi Motors is allowing for optimum, transferable coverage to CPO customers who will also have the ability to extend the original five-year (100,000 kilometer) comprehensive vehicle warranty by four years (or 80,000 kilometer), the company explained.

The company also said that all CPO-eligible vehicles will go through a screening process and come with the following standard features, as well:

  • Mitsubishi Motors-approved,160-point vehicle inspection and reconditioning standards (the all-electric Mitsubishi i-MiEV receives a unique 126-point inspection)
  • 12-month key (or key fob) replacement coverage
  • 10-day/1,500 km exchange privilege
  • CARPROOF vehicle history report
  • 90-day complimentary customer trial of SiriusXM satellite radio on applicable models
  • Warranty coverage (outlined above)

Editor’s Note: Stay tuned to Auto Remarketing Canada on further CPO news from Mitsubishi. We will be interviewing the CPO program's management for an extended feature in the January/February edition of Auto Remarketing Canada Magazine.

CPO sales gain more momentum in November

TORONTO - 

Among the automakers that have reported monthly certified pre-owned sales results so far, two had their best Novembers ever for their CPO programs. And one notched its best month for used sales on record.

First up, Audi Canada notched another record month for CPO sales, reporting its best November for certified on record. The automaker sold 531 CPO vehicles last month, which is up 14 percent from the 466 sales in November 2014. So far this year, Audi Canada has sold 6,078 CPO units, which is up 15.8 percent from the 5,250 sold through November of 2014.

Porsche Canada also saw its best November ever for CPO. The automaker sold 131 CPO vehicles last month, up a whopping 66 percent from the 79 sold during November 2014. Year-to-date, the automaker has delivered 1,429 CPO vehicles, up from 1,036 sold through November of last year.

And for the seventh time this year, the Mercedes-Benz Canada Pre-Owned division, which includes late-model used and CPO sales, has notched its best month on record. The branch of the company sold 1,226 used vehicles in November, which is up 18.5 percent year-over-year. Year-to-date, the automaker has sold 14,496 used units, for a year-over-year increase of 9.7 percent or 1,282 units. CPO sales, in particular, grew by 24.1 percent in November and 13.7 percent for the year so far. CPO sales account for 81.2 percent of total pre-owned sales year-to-date.

BMW Canada CPO sales were up by over 100 units last month. The company reported 696 certified sales, up 20 percent from last November 2014’s total of 577. And sales are up 6 percent year-to-date. The company has sold 7,663 CPO vehicles so far, up from 7,217 sold through November of 2014.

“BMW had another strong month of pre-owned CPO sales due to the excellent value in our program and the continuing efforts of our retailers to deliver the brand promise of ‘The Ultimate Driving Experience’ to our customers,” said Bart Drozdziewicz, specialist, pre-owned sales, at BMW Canada.

The Subaru Canada CPO program continues to gain steam. The automaker sold 176 CPO vehicles for the month, up from just 38 sold in November 2014. Year-to-date, the company has delivered 1,299 CPO vehicles, up significantly from the 313 sold during the same period last year.

Volvo Cars of Canada CPO sales are on the upswing, as well, with 168 certified sales in November, up 23.5 percent year-over-year. And the company is on track to see certified sales rise by over 20 percent for the year. Through November, the automaker sold 1,549 CPO vehicles, up 26.6 percent from the 1,224 sold during the same period last year.

After being up year-over-year in October, VW CPO sales fell a bit in November, although year-to-date sales numbers remain elevated. Volkswagen Canada sold 995 CPO vehicles in November, down 27 percent from 1,363 sold during the same month last year. Year-to-date, though, the company is ahead, with 16,169 certified sales so far, up 1.7 percent from 15,894 during the year-ago period.

Toyota Canada sales were down slightly this past month, with 1,411 CPO sales, down from 1,463 sold during November 2014. Year-to-date, the automaker has sold 18,164 certified vehicles, up from 15,750 sold during the same period of 2014.

Editor's Note: Stay tuned Auto Remarketing Canada for more CPO sales results as they are reported.

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