Certified wholesale vehicles sell faster and at rates 4 to 8% higher than their uncertified counterparts, according to a recent white paper from Manheim Consulting.
The paper, titled, “Certification Impact on Low Grade & High Mileage Units,” also showed that certification can mean one-third fewer arbitrations.
According to the white paper, the benefits and returns of certification are even greater as mileage goes higher than 75,000. That, according to the company, is a signal of buyers’ willingness to pay a premium for the guarantee of a mechanically sound unit.
That can be the case even at a lower grade or higher mileage, the company said.
Manheim Consulting added that giving buyers confidence in their purchases is the key to making the sale. Certifications for older and high mileage cars can give buyers the confidence they need to purchase vehicles faster. They can also mean a competitive edge and stronger profits for sellers.
Manheim says its own certification program, Manheim Certified, can improve profit margins for the seller and protect the interests of all involved parties. The program, according to the company, gives buyers more confidence to do business by providing them with a seven-day, 300-mile guarantee.
The company responds if a repair is needed. Manheim will repair the vehicle in-house or cover the costs of the repair.
Or, in periodic cases, Manheim will take the vehicle back.
Under the program, Manheim Certified unit sellers don’t have to worry about arbitration, according to the company, because the company removes the seller from the post-sale claims process.
Manheim says additional benefits and competitive advantages of certifications can be 6.6% more Simulcast sales, 48% wider Simulcast audience reach, and more bids per vehicle.
For Manheim Certified, which is available to all sellers in the Manheim marketplace, vehicles must be under 125,000 miles.
Also to qualify, they must have an InSight Condition Report and be on-site.
“Manheim’s goal is to build trust and confidence between buyers and sellers within the wholesale market,” Cox Automotive vice president of Assurance Brett Woods said in a news release.
Woods added, “While this data reinforces that vehicles with Certifications are at an advantage, we’re also reminded that giving buyers assurance before the sale is the best way to create a positive experience and earn loyalty.”