CPO Shoppers Value Quality Assurance, Peace of Mind

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From the experts at Cars.com

To help deal­ers and man­u­fac­tur­ers under­stand more about shop­per moti­va­tions for pur­chas­ing or con­sid­er­ing a CPO vehi­cle, Cars.com con­ducted a sur­vey of nearly 900 online car shop­pers in June 2012 who intended to pur­chase or had recently pur­chased a CPO vehicle.

With their manufacturer-backed war­ranty and qual­ity assur­ance, cer­ti­fied pre-owned vehi­cles are gain­ing inter­est among car shop­pers. For man­u­fac­tur­ers, CPO pro­grams can attract shop­pers to the brand who aren’t yet ready to pur­chase a new vehi­cle, build­ing loy­alty to grow new-car sales in the years ahead. Deal­er­ships who cer­tify used vehi­cles can achieve a price pre­mium on those vehi­cles and often cre­ate rev­enue oppor­tu­ni­ties in the sales and ser­vice depart­ments beyond those typ­i­cal of used car sales.

The Cars.com study brought forth the fol­low­ing infor­ma­tion on CPO shop­ping behavior:

  • The study found that qual­ity, reli­a­bil­ity and value are among the top rea­sons shop­pers con­sider pur­chas­ing cer­ti­fied pre-owned, with many con­sid­er­ing recent-model CPO vehi­cles as alter­na­tives buy­ing new. The find­ings also revealed that con­sumers place a pre­mium on CPO vehi­cles over used cars and are often in mar­ket for a longer period of time than their used– and new-car shop­per counterparts.
  • Notably, one in four non-luxury CPO shop­pers and one in three lux­ury CPO shop­pers had owned a cer­ti­fied pre-owned vehi­cle in the past, indi­cat­ing a some­what high degree of cus­tomer loy­alty – a sig­nif­i­cant ben­e­fit for deal­ers given the rev­enue oppor­tu­ni­ties made pos­si­ble by cer­ti­fied pre-owned vehi­cle pro­grams for busi­ness units beyond sales, includ­ing ser­vice and F&I. The fol­low­ing is a sum­mary of the survey’s findings.

Most CPO Shop­pers Col­lege Grads, Mar­ried
A total of 51% of CPO shop­pers have a col­lege degree or have com­pleted post-graduate edu­ca­tion, with 43% of the total report­ing house­hold income of more than $65,000. A higher pro­por­tion of lux­ury CPO shop­pers reported earn­ing more than $65,000 in their house­hold and hav­ing post-secondary degrees, while a higher pro­por­tion of non-luxury CPO shop­pers are female and non-white.

Qual­ity, Reli­a­bil­ity and Value are Key Dri­vers
Lux­ury CPO shop­pers in par­tic­u­lar are influ­enced by the abil­ity to afford a lux­ury vehi­cle and get more features/options for their money, while non-luxury CPO shop­pers are inter­ested in the peace of mind and lower mileage com­pared with non-certified used, but at a lower price point than a new vehi­cle. In the case of both lux­ury and non-luxury shop­pers, the sur­vey respon­dents indi­cated they would pay a pre­mium for CPO over non-certified used vehicles.

Most shop­pers indi­cated an inter­est in pur­chas­ing a CPO vehi­cle that is less than three years old, with less than 1 in 4 con­sid­er­ing a CPO vehi­cle five years or older. Nearly all lux­ury CPO shop­pers also con­sider new vehi­cles, with 8 in 10 non-luxury CPO shop­pers also con­sid­er­ing new, while 7 in 10 of all CPO shop­pers also con­sider pur­chas­ing a non-certified used vehicle.

CPO Shop­pers In-Market Longer, Cross-Shopping More
The major­ity of con­sumers con­sid­er­ing CPO vehi­cles spend more than four months shop­ping for a car, par­tic­u­larly in the case of lux­ury CPO shop­pers – nearly 70 per­cent of lux­ury CPO shop­pers spend at least four months in market.

Visit Cars.com today to put the Deal­er­AD­van­tage to work in your dealership!

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