CPO

Automakers reporting CPO sales spikes to start Q4

TORONTO - 

CPO sales in Canada are off to a quick start in Q4, with three automakers notching October records and all brands reporting sales increases for their respective certified programs.

First up, Subaru Canada has notched another record month for CPO sales, Tom Opratko, manager, business management at certified pre-owned for the automaker, told Auto Remarketing Canada. The OEM sold 170 CPO vehicles in October; quite a boost from the 29 sold during the same month of 2014. So far this year, the automaker has sold 1,123 certified vehicles compared to 275 sold through October of 2014.

Audi Canada experienced a very strong month for CPO sales with 650 units retailed, which is up 21 percent over the 538 sold in October 2014. This represents the best October ever for certified sales for the company, and the second best month in the program’s history. Year-to-date, Audi Canada has sold 5,547 CPO vehicles, up 16 percent from the 4,784 certified units sold during the same period last year.

Volkswagen Canada also scored a record month for CPO in October. The automaker delivered 1,663 CPO vehicles last month, representing a 12.7-percent year-over-year increase. October’s success pushed year-to-date growth to 4.4 percent. VW Canada sold 15,174 certified vehicles through October, up from 14,531 during the same period of 2014.

Porsche Canada sold 153 Porsche Approved CPO vehicles last month, which translated to a significant 61-percent increase from last October’s 95 sales. Year-to-date, the CPO program has sold 1,295 CPO vehicles, up from 957 sold through October of last year.

BMW Canada also reported a strong month for used sales. The pre-owned division sold 1,452 vehicles in October (which includes CPO sales) marking a 13-percent increase year-over-year. Year-to-date, CPO sales, specifically, have spiked by 5 percent.

Volvo Canada numbers were up, as well, in October. The automaker sold 159 certified units, up 34.7 percent from the 129 sold in October 2014. Through October, the company has sold 1,376 certified vehicles, up 26.5 percent over the 1,088 sold during the same period of 2014.

Jaguar Land Rover Canada had an impressive month for CPO. Jaguar CPO sales were up to 31 this past month, an increase from October 2014’s 24 sales. Year-to-date, the brand has sold 295 CPO vehicles.

Land Rover Canada sold 113 CPO units in October, up from 70 during the same month of 2014. Through October, the automaker has delivered 998 certified vehicles.

The Mercedez-Benz Pre-Owned division sold 1,389 vehicles in October, a number which includes both CPO and late-model used sales. Year-to-date, the division of the brand has sold 13,270 units, which is an increase of 9 percent year-over-year. CPO sales, specifically, grew by 9 percent for the month and 12.9 percent for the years, and accounted for 81.4 percent of total pre-owned sales.

Toyota Canada saw CPO sales grow considerably year-over-year last month. The automaker sold 1,606 certified units in October, up from 1,483 sold during the month last year. Year-to-date, the company has sold 16,753 CPO vehicles, up from 14,287 sold through October of 2014.

Mazda Canada sold 466 CPO units last month, after selling 461 CPO vehicles in September.

 

 

September marks strong month for Canadian CPO sales

TORONTO - 

Every brand reporting CPO results to Auto Remarketing Canada enjoyed certified sales lifts last month, with two automakers securing records.

Subaru Canada notched an all-time record month in September, selling 189 CPO vehicles, compared to the 39 that were delivered in September 2014. This brings Subaru Canada’s CPO program to a year-to-date total of 953, compared to 246 during the same period of last year.

“Our new CPO program continues to gain momentum with another record month which in turn adds to an all-time record breaking year,” said Tom Opratko, manager of business management and certified pre-owned at Subaru Canada.

Audi Canada posted a record September, selling 589 CPO units. This represents a 23 percent year-over-year increase over the 480 sold in September 2014. Year-to-date, Audi Canada has sold 4,897 certified vehicles, up 15.3 percent from the same period of last year, during which the automaker sold 4,246 CPO units.

Volvo Cars of Canada posted double-digit gains in September. The automaker sold 147 CPO units last month, up 24.6 percent from the 118 sold in September 2014. Year-to-date, Volvo Canada has sold 1,217 certified units this year, compared to 959 during the same period last year. This represents a year-over-year spike of 26.9 percent.

Volkswagen Canada sold 1,434 CPO units last month, up slightly from the 1,423 sold during September 2014. Year-to-date, the automaker has sold 13,511 CPO units, up 3.5 percent year-over-year.

Over at BMW Canada, the company delivered 740 CPO vehicles in September, up 5 percent from the 709 sold in September 2014. Year-to-date, the automaker has sold 6,245 certified vehicles, also up 5 percent from the 5,928 sold through September of 2014.

Jaguar Land Rover Canada continues to post certified sales gains, as well. The Jaguar brand sold 35 certified units in September, up from 30 sold during the same month last year. Year-to-date, the company has delivered 264 certified units, up from 106 through September of 2014, though the company started tracking 2014 results in April.

The Land Rover brand delivered 116 CPO vehicles in September, up from 93 during September 2014. The company has sold 884 CPO vehicles so far this year, up from 318 through September of 2014 (also started tracking in April 2014).

Toyota Canada CPO sales were on the way up in September, as well, with 1,536 certified units sold. This is up from 1,414 sold during September 2014. Year-to-date, the company has sold 15,147 CPO vehicles, up from 13,924 sold through September of last year.

Domenic Santucci, national manager of incentives and remarketing at Mazda Canada Inc. told Auto Remarketing Canada the automaker sold 461 CPO units in September, slightly above August’s total of 454 certified sales.

2 brands reach August records for CPO sales

TORONTO  - 

Canadian certified pre-owned sales were strong in August, with all reporting OEMs announcing certified sales increases, and two automakers notching monthly records.

Volkswagen Canada enjoyed a record August for CPO sales, with its dealers delivering 1,613 CPO vehicles in August. This represents an increase of 14.7 percent year-over-year. Year-to-date, the company has sold 12,077 CPO vehicles, up 4 percent from the 11,616 sold during the same time last year.

“Strong dealer engagement and attractive retail offers helped ignite our CPO sales over these summer months,” said Kelly-Ann Neary, used-vehicle sales manager at VW Canada.

Subaru notched yet another record month, selling 181 CPO units in August 2015, versus just 29 during the same period of 2014. This puts the automaker’s year-to-date total at 764, versus 207 in 2014.  

 CPO sales at BMW Canada continued to show positive growth this year, as its pre-owned division sold 680 units in August.

“7 Series is a strong performer, selling 255 units year-to-date (or 43 percent increase year-over-year). We hope to see this trend continue for the remainder of the year,” said Bart Drozdziewicz, specialist, pre-owned sales at BMW Canada.

To date, BMW Canada has sold 5,505 CPO vehicles, which is a 5-percent increase versus 2014.

Jaguar Land Rover Canada continue to see CPO sales improve. This past August, the Jaguar brand sold 33 certified units, up from 27 last year. Year-to-date, the brand has delivered 229 CPO luxury vehicles.

Land Rover also performed well, selling 105 certified units in August, up from 68 sold during the same month last year. So far this year, the nameplate has sold 768 CPO vehicles.

Porsche Approved CPO sales are soaring, as well. The company sold 142 certified vehicles in August, up 48 percent year-over-year.

Mercedes-Benz Pre-Owned division reported August sales of 1,310 units for an increase of 6.1 percent year-over-year.  Year-to date, used sales are up 9.4 percent for a total of 10,378 sold. The company shared that CPO sales grew by 5.6 percent in August and 14.5 percent for the year, and currently account for 82.2 percent of the total pre-owned volume.

Volvo Cars of Canada sales were up, as well. The company sold 132 certified units last month, up from 112 sold during August 2014. Year-to-date, the company has delivered 1,070 CPO units, up 5.5 percent from the 1,014 sold during the same period of 2014.

Moving over to highlight some of the Asian nameplates, Toyota Canada CPO sales were up for the month, with 1,657 units sold in August. This is up from 1,546 sold during August 2014. Year-to-date, numbers are up, as well. Through August, the company sold 13,365 CPO units, up from 12,510 sold during the same period last year.

Over at Mazda Canada, its growing CPO program sold a total of 454 CPO vehicles in August.

Lastly, Hyundai Canada sold 549 CPO units in this past month, bringing total 2015 certified sales through August to 4,739.

July marks strong month for luxury CPO sales

TORONTO - 

July was a solid month for certified pre-owned sales, with one luxury automaker notching its best month ever, and multiple OEMs breaking July records, as well.

First up, Porsche Approved CPO sales reached an all-time monthly record in July, with 154 certified units sold.

Audi Canada had another terrific month for CPO sales, selling a total of 580 certified vehicles in July. This is up 20 percent over the 483 units retailed in July 2014. And last month marks the company’s best July ever for CPO. Year-to-date, Audi Canada has sold 3,696 CPO vehicles, up 13 percent from the 3,270 sold during the same period last year.

CPO sales for Volvo Canada were up significantly this past month — 39.4 percent, to be exact. The automaker sold 152 certified vehicles in July, up from 109 sold during the same period of 2014. Year-to-date, the company has delivered 939 CPO vehicles, up 28.8 percent from the 729 sold through July of last year.

Volkswagen Canada had a successful July, as well, delivering 1,563 CPO vehicles. This is up 8.5 percent from the 1,440 retailed in July 2014. So far this year, VW Canada has sold 10,464 CPO vehicles, up 2.5 percent from the 10,210 certified vehicles delivered during the same period of 2014.

BMW CPO sales were up slightly year-over-year. In July, BMW Canada retailed 759 CPO vehicles, up 1 percent from the 755 sold in July 2014. Year-to-date, the company has delivered 4,825 certified vehicles, up 7 percent from the 4,519 sold through July 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 BMW Group Canada specialist, pre-owned sales.

July CPO sales were up for Toyota Canada, as well. The company sold 1,729 CPO vehicles in July, up from 1,671 sold during the same month last year. Sales are also up year-to-date. Through July, the company sold 11,954 CPO vehicles, up from 10,964 sold during the same period last year.

Honda Canada CPO sales were up slightly. The automaker sold 1,499 certified vehicles in July, up from 1,487 sold during the same time last year. Year-to-date, Toyota Canada has delivered 9,205 certified vehicles.

The automaker's luxury arm saw an even bigger boost in CPO sales last month. Acura sold 325 CPO vehicles in Canada in July, up from 272 sold during the same month of 2014. So far this year, Acura Canada has sold 1,792 CPO vehicles.

Over at Mazda Canada, the automaker sold 482 CPO vehicles in July.

Interest in CPO Land Rover and Jaguar vehicles continues to grow in Canada, as well, with the brands seeing significant year-over-year spikes.

Last month, Jaguar sold 28 CPO vehicles and Land Rover delivered 117, up from 20 and 49, respectively, during July 2014.

Year-to-date, Jaguar has sold 196 CPO vehicles in Canada, while Land Rover delivered 663 through July.

“Jaguar Land Rover continues to be very well positioned within the premium luxury CPO market.  The Canadian market today wants luxury SUV's, both full-size and compact so Land Rover can meet the growing demand there,” said Farouk Giga, national manager of pre-owned at Jaguar Land Rover Canada.  

“There are some unbelievable new car products on the way for these iconic British brands — so the CPO growth potential gets that much better every day,” he continued.

June brings CPO gains for Canadian OEMs

TORONTO - 

June was another strong month for Canadian certified pre-owned sales, with many automakers experiencing record CPO sales and impressive year-over-year gains.

Volkswagen Canada experienced its best June on record for certified sales, with dealers delivering 1,587 CPO vehicles. This represents a 15.5-percent year-over-year spike from last June’s 1,374 CPO sales. Year-to-date, the company has sold 8,901 CPO vehicles, up 1.5 percent from the 8,770 sold during the same period in 2014.

Porsche Canada once again had its best month ever for CPO sales, delivering 146 units in June. This topped the previous record of 141 certified sales, which was set in May 

Over at Subaru Canada, the OEM experienced all-time records for second-quarter sales, as well as year-to-date numbers. In June, the automaker sold 136 CPO vehicles, up 403.7 percent from June 2014 sales of 27 certified vehicles. 

For its record quarter, the automaker delivered a total of 329 certified vehicles, up 239.2 percent from 2014’s second-quarter total of 97. Year-to-date, Subaru Canada has sold 477 CPO vehicles, up 211.8 percent from the 153 sold during the same period of 2014.

BMW Canada also saw sales rise last month, with 705 CPO vehicles sold. This is up 8 percent from the 655 sold in June 2014. Year-to-date, the company has sold 4,066 CPO vehicles — also up 8 percent from the 3,764 sold during the same period last year.

“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, pre-owned and corporate fleet sales manager at BMW Canada.

Audi Canada experienced double-digit gains in CPO sales last month. The company sold 613 units, up 17 percent from June 2014 sales of 523. This successful month contributed to a year-to-date increase of 12 percent. So far this year, Audi Canada has sold 3,116 CPO vehicles, up from 2,787 sold during the same period last year.

Volvo Cars of Canada are seeing impressive year-over-year gains in its certified business. Last month, the company sold 140 CPO vehicles, marking an increase of 75 percent from the 80 sold in June 2014. Year-to-date, sales are up 26.9 percent. The company has sold 787 certified vehicles through June, up from 620 sold during the same period of 2014.

Toyota Canada had a successful month, as well, selling 1,747 CPO vehicles in June, up from 1,490 delivered during June 2014. That said, sales are down year-over-year. The company has sold 10,225 CPO vehicles so far this year, down from 18,141 during the same period of 2014.

The Jaguar Canada and Land Rover Canada CPO business continues to gain interest. In June, Jaguar Canada sold 34 CPO units, up from 15 sold during the same month last year, more than doubling sales. Land Rover Canada delivered 102 CPO vehicles last month, up from 67 during June 2014.  

Year-to-date, Jaguar Canada has sold 168 certified units, while Land Rover Canada has delivered 546 certified vehicles.

The Mercedes-Benz Pre-Owned division — which includes both late-model used and CPO vehicles — delivered a total of 7,774 units in the second quarter, for a record-breaking year-over-year increase of 12.1 percent. In June, the full used division sold 1,416 units, which is 10.1 percent above June 2014 sales.

CPO sales, in particular, are up as well for Mercedes-Benz Canada. CPO sales in June totaled 1,147 units for an increase of 14.9 percent. Certified sales also accounted for 84.2 percent of the total pre-owned sales in June.

5 Automakers Score Best CPO Months on Record

TORONTO - 

This past month was an impressive one for certified pre-owned, with five Canadian automakers experiencing their best CPO months on record.

Subaru Canada was on the list of automakers notching an all-time high.

“May was an all-time record month for Subaru as we did 100 CPO units in May,” said Tom Opratko, manager of business management and CPO at Subaru Canada. “This is the first time in the history of the program that we’ve hit triple digits.”

The 100 certified vehicles sold last month was a jump up from 45 units sold during May of last year. Year-to-date, the automaker has sold 341 CPO vehicles, up from 126 sold during the same period of 2014.

Porsche Cars Canada also sold the most CPO vehicles it has ever sold in one month. For May, the luxury automaker delivered 141 CPO vehicles.

Volkswagen Canada also set an all-time monthly record this past month for its CPO program, experiencing not only the best May on record, but the best month for certified sales in company history.

VW Canada sold 1,933 CPO vehicles in May, up from 1,689 sold during the same month last year.

Year-to-date sales are down, but just slightly after the record-breaking month.

VW Canada has sold 7,314 CPO vehicles so far this year, down 1.1 percent from the 7,396 sold during the same period of 2014.

Audi Canada also has its best month ever in the CPO market. The automaker sold 757 certified vehicles in May, up 16.3 percent from last year’s 565. So far this year, Audi Canada has sold 2,503 CPO rides, up 11 percent versus the same period last year.

Kia Canada was also breaking records in May, hitting its biggest CPO sales month on record with 340 certified sales. This is up from 268 sold during May 2014. Year-to-date, the automaker has sold 1,481 CPO vehicles, up from 941 sold during the same period last year.

“Congratulations to all KCI dealers, sales/service field staff for their continued success and support,” said Richard Pasta, manager of national fleet sales, remarketing and CPO at Kia Canada.

BMW Canada sales were up in May, as well. The automaker sold 807 CPO vehicles last month, up from 770 sold during May 2014.

“The strong demand for Certified Pre-Owned BMWs that we saw last month continues into May,” said Bart Drozdziewicz, pre-owned and corporate fleet sales manager at BMW Canada.

Year-to-date, the company has sold 3,360 CPO vehicles, up from 3,109 sold during the same time period of last year.

Jaguar Land Rover Canada’s growth momentum continued last month.

The Jaguar brand sold 31 CPO vehicles in May, up from 11 sold during the same month last year. And Land Rover delivered 93 certified vehicles, up from 29 sold during May 2014.

“Customers continue to gravitate to Range Rover Sport & Range Rover Evoque in great numbers while on the Jaguar side, we've really seen the sports car side of the business grow given the time of year,” said Farouk Giga, national manager of pre-owned at Jaguar Land Rover Canada. “With some exciting F-Type convertibles and the timeless XK models going to new homes in May, customers will be sure to to put them to good use now that the sun is shining across the country!”

Year-to-date, Jaguar has sold 133 certified vehicles, up from 14 sold during the same period of last year.

Land Rover has sold 433 CPO vehicles through May. Last year, Land Rover had sold 41 certified vehicles by this time, though the CPO program wasn’t launched until April 1, 2014.

Over at Mercedez-Benz Canada, the automaker had its best May ever for overall used sales, delivering a total of 1,517 pre-owned units.

This pushed overall growth to 12.6 percent with 6,358 pre-owned units delivered year-to-date. 

CPO sales represent a large chunk of that number. CPO sales grew by 13.1 percent in May and 19.5 percent year-to-date, making up 85 percent of the total volume of used sales.

Volvo Canada reported 141 CPO units sold in May 2015, compared to 131 in May 2014 representing an increase of 7.6 percent.

Year-to-date, Volvo Canada has sold 647 CPO vehicles, compared to 540 during the same time period last year, for an increase of 19.8 percent.

Toyota Canada performed very well in May for its certified business. The automaker sold 1,981 CPO vehicles, up from 1,868 sold during May 2014. Year-to-date, Toyota Canada has sold 8,478 CPO vehicles, up from 7,816 sold during the same period last year.

Both Honda Canada and Acura CPO sales were down slightly this past month. Honda Canada sold 1,526 CPO vehicles in May, down from 1,662 sold during the same month last year.

The Acura brand sold 302, down from 349 sold in May 2014.

 

CPO Strength Evident In April Sales Results

TORONTO - 

April was a good month for most when it comes to the certified market, as the spring selling season picked up, and automakers reported record CPO sales.

For example, the Mercedes-Benz Pre-Owned division recorded a total of 1,523 units sold for an increase of 20.3 percent, resulting in their best April ever.

This double digit growth was also observed in CPO sales that reached a new all-time high with 1,352 units retailed for an increase of 32.4 percent month-over-month.

For 2015, CPO now accounts for 84.6 percent of the automaker’s total volume of pre-owned sales, up 5.4 percent when compared to last year.

The new Jaguar Land Rover CPO program also continues to gain steam, reporting significant year-over-year gains last month.

Jaguar sold 27 CPO vehicles in Canada last month, up from 3 sold in April 2014. And the Land Rover brand sold 87 CPO rides, up from 12 sold during the same month last year.

Porsche Cars Canada also saw double-digit sales gains. The automaker sold 122 CPO vehicles last month, which marks a record April and a 12-percent rise in price from 2014 levels.

Year-to-date, the company has sold 399 units, up from 342 sold during the same period of last year.

BMW Canada CPO sales were up in April, as well. The automaker sold 744 certified vehicles last month, up from 715 sold during April 2014. Year-to-date, the company has sold 2,553 CPO vehicles, up from 2,339 sold during the same time period of last year.

Subaru Canada is seeing significant certified sales increases, as well, and has notched almost triple the amount of certified sales for the first four months of the year versus 2014.

The automaker sold 93 CPO units in April 2015 versus 25 during the same period last year. Year-to-date, the automaker has sold 241 CPO vehicles, up 81 from last year for a 298 percent year-over-year spike.

Toyota Canada CPO sales were up in April. The automaker sold 1,938 certified vehicles last month, up from 1,760 sold during April 2014. Year-to-date, the company has sold 6,497 CPO vehicles, up from 5,935 sold during the same time period of last year.

And Volvo Cars of Canada saw CPO sales spike by over 20 percent in April.

Volvo CPO sales totaled 128 units for April 2015, marking a 2.4 percent increase over April 2014 and 23.7-percent increase year-to-date over 2014.

Kia CPO sales were up considerably in Canada this past month. The automaker sold 331 certified vehicles in April, up from 216 sold during the same month of 2014. This marks a 53-percent increase from last year’s results.

Year-to-date, Kia Canada has sold 1,141 CPO vehicles, up from 673 sold during the same period of last year, marking a 69-percent year-over-year increase.

Audi Canada’s certified sales stayed mostly consistent with last year’s results, but year-to-date, sales are soaring.

Last month, Audi Canada sold 574 CPO vehicles, up 0.2 percent from last year’s April results. Year-to-date, the automaker has sold 1,846 CPO vehicles, up 8.7 percent year-over-year.

Mazda Canada certified sales were down just slightly in April, ending a long line of monthly gains. The automaker sold 483 CPO vehicles last month, down from 487 sold during the same period of 2014. Year-to-date, the company has sold 1,785 CPO vehicles, up from 1,619 sold during the first four months of 2014.

Volkswagen Canada has seen sales slow a bit this spring, with 1,489 CPO vehicles sold in April for a 8.9 percent decline from April 2014. The company has sold 5,381 CPO vehicles so far this year, down 5.7 percent year-over-year.

 

 

Is Canada Ready for the CPO Boom?

TORONTO - 

The certified pre-owned market is growing at a rapid rate in the U.S., with 2014 marking the fourth record CPO year in a row, and Canadian OEMs are increasing certified sales, as well.

Is Canada ready for the CPO boom? 

To help answer that question, Auto Remarketing Canada went to the heart of the market — the automaker CPO managers.

When asked what factors are pushing overall CPO growth in Canada, Bryan Leaitch, former manager of certified pre-owned at Mazda Canada, who recently took on position of national manager of distribution and logistics at Mazda Canada, broke it down into four different trends:

  • Dealers who have fully embraced selling a CPO brand are seeing increases in dealership profitability, customer retention and inventory turns.
  • Active dealer participation is increasing.
  • Customers in the lower end of the purchase funnel are becoming more aware and educated on the benefits of purchasing a CPO vehicle versus a late-model used vehicle
  • OEMs that are seeing success are continuing to invest in their CPO programs

Emmanuel Lichtenstein, national fleet sales, CPO and remarketing manager at Volvo Cars of Canada, also pointed out that increased exposure and marketing from OEMs have spurred the certified market onward, as well, tying into OEM investment in CPO.

“In recent years customers have been exposed to many marketing campaigns on behalf of CPO brands in Canada. Customers are now more educated and have learned to appreciate the value of a certified car,” said Lichtenstein. “CPO allows buyers the opportunity to enjoy top of the line safety, technology and performance at affordable prices.”

Mazda Canada’s program, in particular, has only been on the market since March 2012, and although the company has seen increased sales growth every day, Leaitch said, “We still have a large opportunity to increase our sales further by increasing our dealer participation in the program.”

Leaitch said his company is also looking forward to an increase in used-vehicle supply beginning in the spring of this year, due to Mazda’s leasing program that was launched in April 2011.

And Mazda dealers aren’t the only ones looking forward to such a trend, as used supply is expected to expand for the overall market this year, as well.

CPO As a Brand Entryway

For many vehicle shoppers, a new Audi or Volvo, for example, might not be in the budget, but certified pre-owned programs have been known to open the door to brands for consumers that might not have been able to afford them otherwise.

And, there is always the chance this customer will enjoy his or her experience in a CPO vehicle and then upgrade to a new ride the next time around.

At Volvo, Lichtenstein said, his customers have always been educated customers that appreciate great product at affordable rates, and “CPO vehicles serve as an opportunity to upgrade to a more equipped vehicle. Volvo customers see CPO Volvos as ‘great value.’”

Leaitch echoed that sentiment, noting the CPO program provides a direct entry way into the brand for some shoppers.

“Many customers progress their vehicle needs to match their lifestyle needs. Meaning – customers who previously were purchasing 5- to 10-year-old vehicles are now looking to move into a newer used vehicle that is 2-3 years old, which CPO provides a match for,” said Leaitch. “Eventually these customers will want/be able to purchase a new vehicle, and we are confident that the purchase and ownership experience we provide will keep them in the Mazda family.”

Where Canadian CPO Growth is Headed

Now on to the question of the hour: Where is the CPO market headed in Canada from here?

Lichtenstein has high hopes and said at Volvo, management has definitely seen growth in CPO inquiries and sales and believe the trend will continue throughout 2015.

Illustrating that assertion, the CPO exec expects Volvo to experience 20 percent to 30 percent year-over-year CPO sales growth this year.

That said, although CPO growth is expected by many for the nation, it might not be quite as robust as the U.S. market for now.

“One reason for this is because most OEMs in Canada advertise their CPO programs in the lower part of the customer purchase funnel, as a result the overall awareness of CPO has not increased compared to the U.S.,” said Leaitch. “On the U.S. side many OEMs implement low, mid, and even high level advertising strategies to help build brand awareness.

“The difference in advertising strategy is mainly due to the investment that OEMs in Canada are willing to make in their CPO programs.”

Although Canadian automakers continue to invest, not all OEMs can implement full spectrum advertising campaigns, resulting in focusing primarily in the digital space and in the lower funnel, Leaitch explained.

He also pointed out that CPO sales will continue to growth, but at modest rates, in part because of an overall lower focus on used vehicles in non-domestic automakers

“Historically domestic OEMs have been strong at selling used vehicles, whereas import OEMs have not achieved the same new-to-used ratios; these ratios are improving, but not rapidly,” said Leaitch. “The result of lower new to used ratios means the investment at a dealer level is not necessarily keeping up with market demand. “

An example of this trend would be having one manager at a dealership handle both new and used sales, versus having a dedicated manager for both departments.

“Typically, when a dealership is able to invest in their used-vehicle department, their sales and profits have increased.  This increased focus then leads to improving all areas of their used-vehicle operations, CPO included.  Why this is relevant is because the large majority of OEMs actively promoting their CPO programs are import OEMs,” Leaitch said.

Added Benefits of Certified Growth

Of course, more sales means more profit for dealerships, but there are other added benefits to growing CPO sales, as well, such as trade-ins, service revenue and more.

At Volvo, Lichtenstein pointed out the CPO program helps Volvo dealers retain higher percentage of their lease returns and trade-ins in order to increase certified inventory.

“Volvo retailers are investing more of their marketing budgets into promoting CPO sales. With monthly CPO sales up, they see an instant return in their investment. It generates showroom traffic and increases profitability,” he added.

And Leaitch went as far as to say all other departments within the dealership are positively impacted when CPO thrives.

“Service and parts departments benefit from the additional reconditioning that is typically involved with bringing a CPO vehicle up to brand standards.  New vehicles benefit from CPO intenders that end up purchasing a new vehicle,” said Leaitch. “The business office benefits from the ability to sell extended warranty plans to CPO customers, who are typically more open to these products, and include them as part of their monthly payment, which is usually affordable because of the low-rate purchase financing offered by the OEM for CPO vehicles.”

Bottom line: As the CPO market continues to grow in Canada, used sales will increase, and in turn, dealership profit is bound to follow the upward trend.

Find this story and more content stemming from the Auto Remarketing Canada Conference in our March/April Auto Remarketing Canada Digital Magazine.

Relaunched Land Rover CPO Program Gaining Steam

TORONTO - 

One year ago, Jaguar Land Rover Canada relaunched its Land Rover Approved Certified Pre-Owned brand.

In April 2014, this program joined the Jaguar Approved CPO business that Farouk Giga, national manager of certified pre-owned at Jaguar Land Rover Canada, said “has been a mainstay in the premium pre-owned marketplace.”

This past March, the Land Rover CPO program delivered 110 certified vehicles, while Jaguar sold 33 certified units.

For the relaunched Land Rover program, the March results were a record, breaking the previous high of 93 certified vehicles sold in September 2014. The brand started the year off with 67 CPO sales in January, followed by 85 in February.

With just this month’s results left to report to round out the program’s first year, the automaker has sold 814 Land Rover CPO vehicles so far.

March for Jaguar CPO was also a good month, with the highest sales seen since April of last year.

Jaguar Approved CPO has “held its own” with 240 CPO sales (from April 1, 2014), said Giga, “giving customers a real unique and exclusive option in the Pre-Owned marketplace that is typically saturated with some other premium brands.”

Growing Interest in Land Rover CPO

When asked what factors are driving Land Rover CPO success right of the bat, Giga noted there are a number of players in the mix.

First off, manufacturer-backed CPO programs offer a peace-of-mind that can be attractive to shoppers, especially luxury buyers.

“Knowing that your warranty is backed by the manufacturer and not a third party is important to customers.  Manufacturers have a vested interest to ensure customer satisfaction because it's more than just a profit/loss equation for us,” said Giga. “We want brand ambassadors in our products and we do that by ensuring customer expectations are met every step of the way.”

Giga explained that especially with vehicles becoming more and more complex, having access to technicians trained in particular brands is becoming increasingly important to customers, as well.

“Knowing that manufacturer trained technicians have thoroughly inspected/reconditioned the vehicle using the right equipment and tools ensures that the vehicle is returned to factory specifications. Let's face it, vehicles are becoming increasingly complex,” said Giga. “We provide specialized training to our technicians to ensure they know how to deal with any issues that may arise during the refurbishment process and during the ownership period of the vehicle.”

Also, for many luxury CPO buyers, value retention might be top-of-mind for such a large purchase.

For Jaguar Land Rover, the CPO warranty stays with vehicle and any warranty work has Jaguar Land Rover Retailer maintenance records to go along with it — “these things add value to the next owner and increase the desirability of the vehicle,” Giga said.

And the SUV market is often strong in Canada, which certainly plays a role.

“Obviously, the SUV market continues to grow which positions Land Rover very well within Canada as does Land Rover's reputation for conquering all weather situations. It's no secret that we have been known to get a few flurries in Canada,” Giga said.

Giga also explained among luxury buyers, there is an “appetite” for unique models that speak to distinction and individuality — and Land Rover has tuned in to this trend.

“It's why our top of the line Range Rover is appropriately named ‘Autobiography’ and why luxury vehicle brands have sub brands that promote the ability to customize their purchase even further — luxury is about having that which isn't mainstream,” Giga said.

Giga asserts Jaguar and Land Rover clients “are unique in that they want something different; they choose to avoid the norm.

“For example, within the desired segment, you may have a buyer who is purchasing a niche brand, be it a Jaguar or a Land Rover.  Now take it a step further.  The same buyer may look for their desired model in a particular exterior color which in itself may have only been available for that particular model year,” said Giga.  

“Then they may want that exterior color matched with a particular interior color. With a particular alloy wheel ... and a particular equipment package and so on and so on,” Giga added. “By the time you drill right down to that VIN, you may be in fact looking at a vehicle that is one of one made for Canada,” he continued. “That's the beauty of niche.”

And on top of what Giga calls “great product design” for the Land Rover lineup, retailer enthusiasm certainly plays a role in CPO success, as well.

“Last but not least, our retailers really love the Land Rover product.  They speak with such reverence about previous models, special colors/trims and their own experiences going off-road in the product,” said Giga. "You can't help pass that enthusiasm along to your clientele when they're in the showroom.”

CPO Rides that Stand Out

Giga also pointed out a few vehicles for both brands that should become especially popular in the CPO market going forward.

For Jaguar, the CPO manager expects to see an increase in popular vehicles like the Jaguar XF  and Jaguar XJ All-Wheel Drive variants.

Giga noted these vehicles are entering the vehicle supply stream in slightly higher numbers this year. 

“These are vehicles built with high quality materials and timeless design — add a great certified pre-owned program in the mix, and customers will continue to the beneficiaries of a real great value equation,” Giga said.

 For Land Rover fans, Giga said the iconic Range Rover Sport leads a cult following that shows no signs of letting up. 

“Demand continues to be strong for what is a perfect certified pre-owned vehicle for our Canadian climate and clientele.  It pairs all terrain/all-weather capability along with class and sophistication that can fit right in wherever it goes — on the trails or on the red carpet,” Giga said.

The Range Rover Evoque “continues to turn heads”, as well, Giga pointed out. Giga said the various trims packages for the unit as well as its fuel-efficiency and all-weather capability makes it an attractive option for CPO buyers.

The Jaguar Land Rover CPO Customer

For the majority of luxury brands, certified sales offer an entry-way into the brand for those shoppers that might not be able or willing to shell out for a brand new vehicle.

But with Jaguar and Land Rover, some of these CPO vehicles' pricetage still go over the $100,000 mark, so Giga said it’s not always a question of affordability.

“It's really more about the value equation that motivates a pre-owned buyer.  hey get a vehicle that has depreciated from new, a warranty that protects, a finance rate that makes for an attractive payment and some other benefits that round out the package,” said Giga. “That's a tough package to beat, especially when it's attached to a beautiful vehicle.”

 And as for whether the CPO programs drive loyalty to the brands, Giga said the certified programs to increase the “opportunity of loyalization.”

“CPO vehicles increase the product offering, some that may strike a chord with a potential returning customer. You may also have the chance to build a better relationship with the customer if they decide to service their vehicle at your location,” he said. “But you still have to do the right things to earn customer loyalty and it's bigger than just one program. It takes a concerted effort of exceptional customer service, great products, competitive offers and much more to drive loyalty.”

 

Meet Mazda Canada's New CPO Manager

TORONTO - 

Mazda Canada recently promoted a new CPO manager to run the automaker’s certified program that has been reporting sales increases consistently since relaunching in 2012.

Kevin Yeoh has been chosen as the automaker’s new manager of certified pre-owned and remarketing.

Yeoh takes the place of Bryan Leaitch, who has taken on the position of national manager of distribution and logistics at Mazda Canada.

“When I was in an incentives role, I was part of the team that helped launch Mazda’s lease program.  So when the predecessor to my role, Bryan Leaitch, was promoted, it presented a good chance for me to complete the lifecycle of the vehicles that we had leased out as new cars that are now coming to maturity,” Yeoh said.

Yeoh’s main responsibilities in his new role will include working with the company’s partners and dealer network to promote and grow the Mazda certified pre-owned brand, as well as manage the remarketing portfolio to improve our residual values.

Yeoh started his career at Mazda Canada in the product strategy department in 2008 and was then promoted to senior specialist for incentives in December 2009, after the company enjoyed 13 consecutive months of year-over-year sales growth and two record months.

Yeoh told Auto Remarketing Canada he also played a role in launching the Mazda Financial Services lease program with partners at Canadian Dealers Lease Services Inc. and Scotiabank.

Yeoh also served with the company as a district sales manager, covering the eastern Greater Toronto Area as well as the Ottawa market.

Before joining Mazda Canada, Yeoh began his career in personal and commercial banking at HSBC before delving into the marketing and sales field, working as a buyer for point-of-connection materials for the marketing team at Labatt Breweries of Canada.

Now, the newly promoted CPO manager is ready to take on his new role.

“I know that the first year for me will be a learning curve, but one that I am very excited about.  We have a large number of maturities coming due this year, so the whole remarketing process presents a lot of opportunities that will directly impact our brand,” Yeoh concluded.

 

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