Certified Pre-Owned

New-car incentives impact CPO’s overall sales pace

DETROIT  - 

Elevated new-vehicle incentives are helping to slow the overall sales pace of certified used cars and trucks, analysts said, but some automakers’ CPO sales are still thriving.

Industrywide sales of certified used cars and trucks in August dipped 1.4 percent to 230,013 but were up 0.3 percent to 1,798,711 units in the first eight months, according to AutoData Corp.

Sluggish new-vehicle sales are pressuring automakers to use incentives to move the metal, analysts said. Liberal incentives can bring new-vehicle transaction prices and especially their monthly payments, very close to certified used-vehicle prices. Certified vehicles typically command a premium to cover costs of reconditioning and factory-backed warranties.

These factors can cause some auto companies and dealers to take their eyes off of certified while they concentrate on new vehicles, analysts said.

Edmunds analyst Ivan Drury said August’s average new-car incentive of $3,377 was up 15.1 percent from August 2016 and the third highest for any month since January 2002.

“Like with (Chevrolet) Silverado, they are advertising something like 17, 18 percent off of MSRP,” Drury said. “When you have things like this it (discourages you) to certify your existing, 2- or 3-year old Silverados. Their prices are getting close to the prices of new trucks.

“It’s kind of bizarre that we have such strong residual values on trucks, and we also have large incentives," he added. 

Whatever the reason, some of the industry’s largest sellers of CPO vehicles are seeing their sales fall this year.

For example, the Toyota division’s CPO sales in August dropped 16.6 percent to 30,380 and slid 11.7 percent to 249,842 in the first eight months.

Toyota expects growth in 2018

In an email response, Scott Heyer, the Toyota division sales operations general manager, said the company will fall short of its sales record of over 400,000 units set in 2016, but expects 2017 to be “one of our best volume years in history. We are forecasting to get back to year-over-year growth in 2018.”

But despite the competition from new vehicle sales, CPO sales in general are still doing well, said Anil Goyal, an analyst at Black Book. “They are maintaining the level that we saw last year, which is high for certified,” Goyal said. “As an industry, we’re seeing certified (equal) about 15 percent of all new sales”

And some auto companies and dealers are confident the strong sales increases they’ve seen this year will continue.

Brian Benstock, vice president of Paragon Honda and Paragon Acura in Woodside, N.Y., predicts that CPO sales will continue to grow, especially for the Honda division.

Honda’s stringent certification guidelines makes the difference, Benstock said.

The company conducts monthly visits to most if not all dealerships to inspect vehicles registered as CPO to make sure dealers are doing the mechanical and cosmetic reconditioning as required, he said.

“Hopefully all dealers understand this puts everybody on a level playing field,” he said.

“We’re now getting customers that are multiple time repeat certified buyers.

In August, the Honda division’s CPO unit sales increased 2.7 percent to 22,896; its sales in the first eight months improved 5.2 percent 176,104.

Sights on sales record

Martin Gleason, senior manager of CPO at the Nissan division expects the company’s CPO sales to exceed 200,000 units this year, which would represent at least a 9-percent increase over last year and break last year’s record.

In August, the Nissan division’s CPO unit sales rose 7.5 percent to 18,596; its sales in the first eight months improved 13.4 percent to 139,079.

Gleason said the company’s consistent support of the program with attractive finance rates, dealership incentives and training, and a push for dealers to list every certified used vehicle for sale online, makes the difference.

“There’s nothing new,” Gleason said. “We’ve had all of these for the past three years.”

Eric Swanson, head of certified pre-owned at Fiat Chrysler Automobiles said FCA’s CPO program drives consumers to its dealerships, and when dealers convert those customers to new vehicles, that’s a good thing.

Swanson said his goal is to capture a chunk of the industry’s annual 40 million used-vehicles sales.

First new, then CPO

“What if there is a really great incentive on a new car? Move people over to those cars,” Swanson said. “There are a lot of people buying used cars, and I want them in FCA dealerships buying certified pre-owned cars.”

FCA’s August sales were up 18.4 percent to 22,134 units; its August year-to-date sales were up 13.9 percent to 169,529.

Jose Froehlich, senior manager, certified pre-owned, Hyundai Motor America, in an email response, said the company is seeing increased sales of CPO SUVs, and its future off-lease vehicles mix will better align with customer demand for those vehicles.

“Our CPO program continues to be a great entry point into Hyundai and drives incremental dealer traffic, where consumers may select a certified pre-owned vehicle or, perhaps, a new Hyundai, given the attractive in-market offers currently available,” he said.

Hyundai’s CPO unit sales in August dropped 14.4 percent to 7,140; its August year-to-date sales fell 11.9 percent to 57,958.



CPO share of franchised used-car sales up slightly

SANTA MONICA, Calif.  - 

This year marked the best second quarter ever for the used-car market and the first time there has been more than 10 million used-car sales in Q2, according to Edmunds.

Franchised dealers sold 2.95 million used cars during the quarter, and slightly more of those were certified pre-owned than in the same period of 2017, based on data in the company’s latest Used Vehicle Market Report.

Overall, there were 10.05 million used-vehicle retail sales in the second quarter, a figure that includes sales from dealers and between private parties. That’s a 1.7-percent year-over-year uptick.

Franchised dealers, whose overall used retail sales were up 1.4 percent, sold 693,802 certified vehicles in the quarter, according to Edmunds.

Not only is the CPO sum a 2.3-percent year-over-year gain, but it also represents a bit larger piece of franchised dealers’ used-car operations.

In the second quarter, 23.55 percent of franchised dealer used-car sales were CPO.

In Q2 of 2017, it was 23.34 percent.

CPO results year-to-date 

As for the most recently completed reporting period, certified sales fell 1.4 percent year-over-year in August, but are still on track for another record-breaking year.

That's according to data from Autodata Corp., which said there were 230,013 CPO sales for the month, compared to 233,236 in August 2016.

Certified sales were up 1.3 percent from July, when CPO sales fell 3.2 percent year-over-year

Through eight months, there has been a shade less than 1.8 million CPO sales, which beats the year-ago pace by 0.3 percent, Autodata said.

In August, three brands — Nissan, Jeep and Audi — had their best months ever for certified, according to Autodata. 

 



CPO car sales dip in August, remain ahead year-to-date

CARY, N.C. - 

Certified pre-owned vehicle sales fell 1.4 percent year-over-year in August, but are still on track for another record-breaking year.

According to data from Autodata Corp., there were 230,013 CPO sales for the month, compared to 233,236 in August 2016.

Certified sales were up 1.3 percent from July, when CPO sales fell 3.2 percent year-over-year

Through eight months, there has been a shade less than 1.8 million CPO sales, which beats the year-ago pace by 0.3 percent, Autodata said.

In August, three brands — Nissan, Jeep and Audi — had their best months ever for certified, according to Autodata. 

Domestic brands combined to sell 78,927 CPO units for the month (up 1.9 percent), and they have moved 620,646 for the year (down 1.2 percent).

Asian brands moved 110,157 certified vehicles in August (down 5 percent), with year-to-date numbers at 873,269 (up 0.1 percent).

With 40,929 CPO sales in August, European brands were up 2.7 percent last month. Through eight months, they are up 4.2 percent with 304,796 CPO cars sold.



How North American CPO sales are faring this summer

CARY, N.C. - 

With August drawing to a close on Thursday, certified pre-owned sales results for the month should be rolling in sometime shortly after the Labor Day weekend, if not before.

As a refresher, here’s how the CPO markets in both the U.S. and Canada have fared so far this year, starting with the U.S.

American CPO market up modestly year-to-date

Certified pre-owned vehicle sales in the U.S. fell more than 3 percent in July, but year-to-date numbers still remained slightly ahead of the 2016 pace at month’s end, according to Autodata Corp.

There were 227,045 CPO sales for the month, which was off 3.2 percent year-over-year but up 2.3 percent from June. Through seven months, there have been 1.57 million certified vehicles sold in the U.S., which beats year-ago figures by 0.6 percent, Autodata said.

The daily sales rate in July was 9,082, up from 9,019 in July 2016. Year-to-date, the DSR of 8,862 is also up from year-ago numbers (8,762).

The Big 3 sold 78,782 certified units in July, beating last year’s numbers by 1.9 percent. In seven months, domestics have sold 541,719 CPO units, which is down 1.6 percent year-over-year.

CPO sales for Asian brands were down 7.8 percent in July at 109,827 units sold, with year-to-date sales up 0.9 percent at 763,053 sales.

European brands moved 38,436 certified cars for the month (up 0.8 percent) and 263,874 units year-to-date (up 4.4 percent).

Canadian CPO shows ‘momentum’

Next up, Canada.

When Joel Gregory, the national sales manager for CPO and remarketing at Hyundai Auto Canada, shared his brand's certified pre-owned sales results for July, he said via email: "The momentum continues."

Indeed, it does. 

Not just for Hyundai, where CPO sales climbed nearly 36 percent last month, but for the industry as a whole, as well. 

Hyundai Auto Canada moved 794 certified vehicles for the month, beating last July’s 585 CPO sales. Year-to-date sales of 5,175 are handily beating last year’s pace, when 3,149 CPO units had been sold through July.

It joins several automakers in Canada reporting strong certified pre-owned sales this summer. 

At Mercedes-Benz Canada, the pre-owned division had its strongest July on record in the CPO market. It sold 1,058 CPO units, versus 931 in July 2016. Mercedes has moved 8,027 certified vehicles through seven months of the year, compared to 7,608 CPO units sold through July 2016.

Also notching a record July for certified sales was Volkswagen Canada, which sold 1,683 CPO units, up from 1,287 certified sales in July 2016. Through seven months, VW Canada has sold 9,481 certified vehicles, compared against 9,325 in the year-ago period.

BMW Canada — which reports certified pre-owned and non-certified pre-owned together — said last month was its best July ever on the pre-owned side.

It moved 1,873 pre-owned units, up 21 percent year-over-year. Through seven months, pre-owned sales are up 15 percent at 13,017 units.

Toyota Canada posted 2,664 certified sales for the month, against 2,323 CPO sales in July 2016. Year-to-date sales for the Japanese automaker have reached 18,191 units, up from 14,321 through seven months of 2016.

Volvo Canada sold 183 certified pre-owned vehicles in July, even with a year ago. But through seven months, CPO sales were up 9.7 percent at 1,258 units.

Porsche Cars Canada had 205 CPO sales in July, up from 163 in July 2016. Through seven months, it has sold 1,178 certified vehicles, compared to 1,032 in the same period of 2016. 



4 reasons why Latin America’s used market is ‘transforming’

BUENOS AIRES - 

New research shows the United States is a model for how used vehicles can be a profitable industry growth segment for other places in the world, including the use of certified pre-owned programs.

Strategic consultancy firm Frost & Sullivan cited four reasons why the used-vehicle market in Latin America is “transforming.”

While noting factors common in the U.S. marketplace, Frost & Sullivan projected the total used-vehicle market in Latin America will reach 22.4 million units in 2022, exhibiting a compound annual growth rate of 3.4 percent during 2016 through 2022. The four reasons for that sharp rise include:

—OEM collaboration with franchised dealerships in order to resolve informality and lack of financing, improve their brand image and equity, and increase new unit sales as customers can use their old vehicle as partial payment.

—Deployment of new apps, mostly in Mexico, Brazil and Argentina, which create opportunities for independent dealerships and individuals selling their vehicles.

—Online disruptors partnering with OEMs, dealerships and financiers to create shared value through data such as customer preferences and new-model reselling patterns

—OEM efforts to promote used hybrid and electric vehicles through certified pre-owned programs designed to ease battery life anxiety among buyers.

“The Latin American used-car market is primed for online disruptors that can offer financing, easy and friendly processes, and limited warranties and maintenance plans to differentiate and add value for customers," said Frost & Sullivan mobility industry analyst Hernan Cavarra.

“The focus of these startups will be to remain competitive on pricing by keeping operational costs low,” Cavarra continued. “Taking advantage of the learning curve from similar business models in the U.S. market, online businesses can expect success in the medium to long terms."

Frost & Sullivan also mentioned several innovative players are helping accelerate market growth in peripheral used-vehicle markets like Peru and Mexico that are “informal, unprofessional, and poorly regulated,” and in large markets like Brazil, where oversupply of new models due to an economic crisis and influx of low-cost Chinese units, restrain used-vehicle sales.

For instance:

—KAVAK offers end-to-end buying and selling of second-hand vehicles in Mexico along with the commitment of selling the vehicle offered by individuals within 30 days.

—InstaCarro.com has a disruptive business model that promises to sell any used vehicle in an hour and a half or less to any of more than 1,500 dealers that buy it through an online auction. In its first year of operation, the company reported more than $32 million in revenue.

—Localiza, one of Latin America’s biggest car rental companies, has a used-vehicle division that uses smartphone apps, offers good financing options by taking the customer's used unit as part of the transaction, and provides insurance and regular maintenance services.

—Superbid, which specializes in online auction sales, also offers fleets.

—Nissan Mexico offers almost-new and used vehicle eCommerce through its listing-driven website, and has a 154-checkpoint CPO program, financing, warranty, on-demand maintenance and services features, and original spare parts.

“Government regulations, OEM CPO programs, active participation in the market through franchise dealerships, and startup apps for 100 percent used-car sales processes will build trust among buyers and boost confidence in used cars,” Cavarra said.

to access more information regarding this Frost & Sullivan analysis.



CPO sales down 3% in July, still up for year

CARY, N.C. - 

Certified pre-owned vehicle sales fell more than 3 percent in July, but year-to-date numbers still remain slightly ahead of the 2016 pace.

That’s according to numbers released Tuesday by Autodata Corp.

There were 227,045 CPO sales for the month, which was off 3.2 percent year-over-year but up 2.3 percent from June.

Through seven months, there have been 1.57 million certified vehicles sold, which beats year-ago figures by 0.6 percent, Autodata said.

The daily sales rate in July was 9,082, up from 9,019 in July 2016. Year-to-date, the DSR of 8,862 is also up from year-ago numbers (8,762).

The Big 3 sold 78,782 certified units in July, beating last year’s numbers by 1.9 percent. In seven months, domestics have sold 541,719 CPO units, which is down 1.6 percent year-over-year.

CPO sales for Asian brands were down 7.8 percent in July at 109,827 units sold, with year-to-date sales up 0.9 percent at 763,053 sales.

European brands moved 38,436 certified cars for the month (up 0.8 percent) and 263,874 units year-to-date (up 4.4 percent). 



CertifiedCars.com relaunches website

LOS ANGELES  - 

CertifiedCars.com has relaunched with a new website, the online certified pre-owned vehicle marketplace said in a news release.

The company said is more intuitive and has easier navigation, new tools to browse and research CPO vehicles.

It also has a side-by-side comparison of automaker CPO programs, including information on inspection processes, warranties and other key metrics.

“As the top resource for searching for and comparing only certified pre-owned cars, CertifiedCars.com has years of expertise in providing CPO car shoppers with the tools they need to find their ideal next car, SUV or pickup truck,” the company said in the release.

CertifiedCars.com describes itself as the top source for “locating the best certified used cars in America,” adding: “Certified pre-owned car shoppers and dealerships that sell CPO vehicles benefit from CertifiedCars.com, since certified used cars can be compared and cross-shopped with other CPO models with similar benefits, like an extended CPO warranty.”



Q&A with Ron Cooney of Toyota Certified Used Vehicles

CARY, N.C. - 

As part of the Aug. 1 print edition of AuSM, , we conducted a few Q&As with leaders from some of the top companies in the used-car space. 

Below is a Q&A with Ron Cooney, who is the Toyota Certified Used Vehicles sales operations manager at Toyota Motors North America.

AuSM: When did you move into the role of TCUV sales operations manager, and what have been some of your goals from the outset?

Ron Cooney: Great timing on my move into this position. In 1997 I started with Toyota as a TCUV consultant for the New York and Boston regions. Now, May 2017, exactly 20 years and several positions later, I’m at headquarters working with all of the Toyota regions. My short-term goal is to get settled in Plano, Texas, and adjust to the heat. Seriously, the short-term goal is to serve all of our regional offices in their efforts in supporting the dealers.

AR: How has the increase in off-lease volume helped Toyota certified, and how has it challenged Toyota certified?

RC: Some may look at a lot of lease returns as a problem. Lease returns obviously present new-car sales opportunities as well as create the used-car and TCUV inventory pipeline. Accurate lease return schedules help design incentives and marketing based on expected dealer inventory levels. Lower-mileage, shorter-term lease returns provide great inventory opportunities for both TCUV and non-certified sales. The point is, the Toyota dealer has first crack at the inventory and then the Toyota dealer becomes the one-stop place for any used, certified or new Toyota.

AR: How is the TCUV working to raise awareness and understanding of CPO among consumers?

RC: These days, terms like “peace-of-mind,” “consumer confidence,” etc., have become clichés when it comes to certified used vehicles, or certified anything for that matter. We are delivering the message every day that TCUV is more than just a warranty, and peace-of-mind is not a cliché. TCUV means a thorough eligibility inspection, intense reconditioning, both mechanical and cosmetic. So there’s confidence at the time of purchase, which is just as important as the warranty benefit in the event there’s an issue down the road. You start with the best new cars, add in the best reconditioning standards and you get the best of the best used cars, a Toyota Certified Used Vehicle.

AR: What are some of the challenges dealers are facing in CPO, and how is Toyota working to help dealers overcome those challenges?

RC: Challenges in the used-vehicle and CPO markets can be cyclical. Too many available cars can drive prices down, too few cars drive prices up and less selection for consumers. Consumer questions like, “Should I buy a new car or should I buy a used car?” always challenge dealers to make sure they have the right vehicle, priced correctly for every consumer.

Toyota has seen tremendous growth in used Toyota and TCUV sales over the years. When dealers stay focused on having the right car for everyone, Toyota, the dealer and, most importantly, the consumer, wins. If we do that correctly, we have a customer for life.



Kia reports best-ever half & quarter for CPO sales

CARY, N.C. - 

It was a record half and a record quarter for Kia certified pre-owned

Moving just under 40,000 units, Kia Motors America said the first half of the year represented its best six months ever for CPO sales. More specifically, Kia sold 39,799 certified vehicles in the first six months of 2017, beating year-ago figures by 7.8 percent, according to Autodata Corp.

While June sales were down 13.8 percent at 6,385 units (per Autodata statistics), Kia said the 20,346 CPO vehicles it sold from April through June marked its best quarter ever for certified.

The company said the second-quarter was driven by double-digit-percentage gains for its Cadenza, K900, Sportage and Sedona models.

“Kia is enjoying a terrific year for Certified Pre-owned vehicle sales. Kia has gained market share and is outperforming some of its big-name competitors,” Autotrader executive analyst Michelle Krebs said in the Kia news release.

“As its off-lease vehicles return to the market, Kia is in a strong position to maintain its momentum,” Krebs said. 

Industry-wide CPO sales were down a bit year-over-year in June, but year-to-date sales still beat the first-half totals from a record 2016.

According to Autodata, there were 221,853 CPO sales last month, which was down 0.8 percent from June 2016.

Through six months, there have been 1.34 million certified sales, up 1.2 percent from last year’s pace.



Autotrader names top summer CPO deals

ATLANTA - 

With consumers taking advantage of both pleasing gas prices and the time to shop around this summer, Autotrader has come out with its top picks for certified pre-owned deals in July, which include promotions by eight different automakers.

"For shoppers that are looking for great value in their next car, but are concerned about the potential repair bills that could crop up with a used car, a certified pre-owned model is a good option," Autotrader executive editor Brian Moody said in a news release.

Autotrader editors' top picks for certified pre-owned deals for July include:

—Audi is currently offering 2.49 percent interest on all 2012 to 2016 CPO models for up to 66 months. The offer excludes the exotic R8 sports car.

—Through the end of August, qualified Cadillac shoppers can get 2.9 percent interest for up to 36 months on any CPO 2015 SRX model or newer.

—Kia's certified pre-owned program offers qualified shoppers 1.9 percent interest for up to 36 months on all CPO Kia models.

—In addition to two desirable warranties, Mazda’s CPO program currently touts 1.49 percent interest for up to 36 months on all CPO models through the end of September.

— Mercedes-Benz's CPO program is offering 1.99 percent interest on all CPO 2014-2016 CLA models for up to 36 months.

— This month, MINI qualified shoppers can get 0.9 percent interest on any 2013 or 2014 CPO model. And for shoppers paying cash, MINI is offering an additional $500 cash back incentive this month.

— At Toyota, shoppers interested in the Camry Hybrid can get 1.9 percent interest for up to 60 months through the end of October

— Volvo’s CPO program currently offers seven years or 100,000 miles of comprehensive coverage from the original sale date and a special incentive on its 2015 S60 sedan. CPO shoppers who purchase a 2015 S60 can get 0 percent interest for up to 24 months.

 to get additional details for these CPO programs.



читайте здесь

дизайн интерьера помещений

гадание на кофейной гуще онлайн