ATLANTA – Currently, used-car certification programs are now available through most, if not all, major car manufacturers and are joined by numerous warranty companies touting their own versions of vehicle certification.
The certified pre-owned market has broken sales records in each of the past five years, and all data point towards 2016 as another record-breaking year for CPO sales.
Typically, any used car sold through an OEM CPO program or off-brand warranty company will cost more than a used car that is not certified. There are several reasons why such vehicles command a premium in the used-car marketplace. This article will discuss the factors that drive up those costs and, more importantly, increase perceived value for consumers
Certifying a used car requires a financial investment by the dealership in the unit itself. With so many dealerships focused on price compression and turning vehicles faster, adding any additional cost to a vehicle becomes a critical financial decision on the part of the dealership. For dealers in the current highly competitive marketplace, differentiating themselves from competitors and winning over the consumer have become essential to survival.
Wowing the consumer, while keeping the right vehicles on the lot, maintaining value in the car and offering a fair deal is what turns vehicles faster and allows for profit to be made.
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Author: Digital Dealer
Digital Dealer exists to help dealers and their managers sell more vehicles more profitably by creating the best live events and media in the industry.