By Jon LeSage, Editor, Used Car Market Reports
Here’s a few significant remarketing news developments during the past week:
- Certified pre-owned vehicle programs are continuing to grow outside manufacturer programs. Auction Direct USA, one of the largest independent used-car retailers in the US, partnered with the National Independent Automobile Dealers Association and will be offering NIADA Certified Pre-Owned vehicles at its stores. Vehicles in the program will undergo a 125-point inspection and will have a “worry-free” six-month/6,000-mile limited warranty; a CARFAX Vehicle History Report; flexible, fully customizable warranty options; free vehicle maintenance; and the option of receiving an exclusive 100-day/1,000-mile return option from Auction Direct USA.
- Lithia CEO wants to ramp up used sales. Lithia Motors president and chief executive officer Bryan DeBoer has an objective that each of the group’s 130 dealerships in 14 states turn at least 75 used vehicles each month – even though Lithia stores averaged 57 retail vehicle sales during the first quarter of this year. That will come from an abundant supply of three-to-five year old vehicles available as inventory, which he calls the group’s “core product.” Trade-ins are also filling Lithia lots with more than 80,000 miles and often sold to consumers with sub-prime credit ratings.
- Manheim continues to go mobile. Manheim has added to new state-of-the-art trucks to its mobile auction network. Eight additional mobile units will be added later this year, bringing up the total to 24. The new mobile unit will be packed with portability features, making it an “auction in the box” where an auction can take place anywhere there’s demand. They’ll have the same Simulcast capabilities of Manheim’s physical auctions, and the same support services dealers have come to expect at all its auctions.
- Tesla quietly launches certified pre-owned program. Last year, Tesla Motors talked about launching its own CPO program as its Model S started coming off-lease. That was launched last week without notifying the media or customers, perhaps in a test model. Every pre-owned Model S comes with a 4 year, 50,000 mile limited warranty, according to the Tesla website. On the site, a 2013 Model S 85 is selling for $65,550 and has 13,036 miles on its odometer.