CPO Shoppers Value Quality Assurance, Peace of Mind

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!

Tags:


0 Comments

    Leave a Reply

    Your email address will not be published. Required field are marked *.