CPO

Update on Canadian CPO car sales

CARY, N.C.  - 

Through five months of 2018, certified pre-owned sales continue to  look strong for a few automakers reporting results to AuSM Canada.

Volkswagen, for example, had its best-ever May. It moved 1,938 CPO units, which was up 36.2 percent year-over-year. 

VW’s year-to-date sales of 8,283 units are up 29.8 percent.

Audi sold 815 certified pre-owned vehicles in May, beating the year-ago figure by 9.1 percent. Through five months, it has moved 3,762 CPO vehicles, a 23.2-percent increase.

The 213 certified sales from Porsche in May represented a lift of 7 percent from a year ago, pushing the year-to-date sum to 946, a 19-percent increase.

Hyundai increased CPO sales 3 percent in May, selling 900 units.

“Hyundai Canada continues to be very pleased with how dealers have responded to the program,” Hyundai Auto Canada’s senior manager of fleet sales, CPO and remarketing Russell Seton said via email. “We are now seeing more dealers engaged and actively supporting the brand.”

Mercedes-Benz was relatively steady with year-ago figures, moving 1,373 CPO units, compared to 1,378 in May 2017.

Likewise, its 5,665 year-to-date certified sales are up slightly from 5,653 through five months of 2017.

Nissan had 927 CPO sales in May, compared to 1,400 a year ago. Its year-to-date sum is at 1,618, down from 2,265 in the year-ago period.

Infiniti moved 115 certified vehicles for the month, up from 111 in May 2017. Its year-to-date sales are at 209, compared to 245 in the same period of 2017.

Volvo had 772 certified sales in May.



VW Canada reaches CPO vehicle sales record

CARY, N.C.  - 

Volkswagen Canada had its strongest month ever for certified pre-owned sales, moving 2,016 CPO units in April, according to the automaker.

This was up 52.6 percent over April 2017 sales.  This followed March sales of 1,686 CPO units, which beat year-ago figures by 18.6 percent.

Through four months, VW is up 28 percent with 6,345 CPO sales.

Elsewhere in the CPO market, there were several other positive signs.

At Porsche, certified sales have climbed 22 percent year-to-date at 733. March sales were up 32 percent (216 units), and April sales climbed 15 percent (205 units).

Hyundai has sold 2,998 certified vehicles through April, up from 2,685 units a year ago. It moved 819 in March (up from 747 in March 2017) and 808 in April (up from 787).

“Hyundai Canada Dealers continue to embrace H Promise CPO with ever-increasing adoption and steady year-over-year growth,” Russell Seton, senior manager of fleet sales, CPO remarketing national sales at Hyundai Auto Canada, said via email.

Mercedes-Benz has sold 4,282 certified vehicles through four months, up 0.2 percent year-over-year. In March it moved 1,282 CPO vehicles (down 7.0 percent), but increased sales 1.9 percent in April with 1,269 vehicles moved.

Toyota has sold 10,823 certified vehicles so far this year, up from 9,546 in the first four months of 2017. In April, it sold 3,191 CPO vehicles, compared to 2,929 in April 2017.

It moved 3,104 CPO cars in March, compared to 2,598 a year earlier.

 

Canadian certified car sales through 2 months of year

CARY, N.C. - 

Automakers shared their certified pre-owned sales results with AuSM Canada for February, and below is a rundown of how auto brands are faring through two months of the year. 

Starting with Audi, the automaker increased CPO sales by 29.4 percent year-over-year, moving 612 units in February. It has lifted year-to-date sales by 37.1 percent, selling 1,230 CPO vehicles.

Porsche certified sales climbed from 136 units in February to 169 last month.

Year-to-date sales are at 312, compared to 256 sales a year ago.

Hyundai increased CPO sales by 23 percent last month, moving 645 units. Its year-to-date numbers (1,359 sales) are up by 27 percent.

Toyota reported 2,317 certified sales for February, up from 2,038 a year ago. Through two months, there have been 4,528 Toyota CPO sales, compared to 4,024 through February 2017.

There were 1,325 VW CPO sales in February, compared to 1,094 a year ago.

VW has sold 2,643 certified vehicles year-to-date, against 2,215 in the first two months of 2017.

Over at Mercedes-Benz, there were 869 certified pre-owned vehicle sales last month, versus 878 in February 2017.

Canadian car market may have CPO momentum in store

CARY, N.C. - 

If certified pre-owned vehicle sales in Canada appear strong, that may only be the tip of the iceberg.

That is, if it follows the pattern of the CPO market in the U.S., which took some time to develop but certainly “caught on … in a big way” during the last decade.

KAR Auction Services chief economist Tom Kontos believes Canadian CPO car sales will remain on the upswing and give a boost to used-car values.

“Certification seems to be another sort of avenue that will probably be helpful to the Canadian market going forward. Certification really caught on in the U.S. in a big way over the last ten years, but in Canada, it’s a little more embryonic, though growing,” Kontos said in a phone interview with AuSM Canada correspondent Sarah Rubenoff.

“I would expect certified used-vehicle sales continue to grow in Canada and provide demand/supply support to wholesale values because those off-lease units that start coming back are perfect candidates to be certified cars,” he said.

From 2013 through 2017, there were an average of roughly 225,000 lease returns each year in Canada, said Canadian Black Book’s Brian Murphy. However, the average for the 2019-2021 time frame is expected to be 400,000 lease returns annually, he said.

So look for the CPO “candidates” to be plentiful in coming years.

And look for more used-car analysis from both Kontos and Murphy at next month’s . Both are , which is being held March 27-28 at the Westin Harbour Castle in Toronto. 

CPO sales from January, full-year 2017

As far as the present, certified sales are already showing some strength, based on the numbers provided by automakers in Canada.

Mercedes-Benz had its strongest January ever for CPO, moving 862 vehicles for an 11.5-percent year-over-year gain.

In full-year 2017, Mercedes moved 13,344 certified cars — its best-ever year for CPO and a 5.1-percent improvement.

Volkswagen also had its strongest January ever for certified and an all-time annual record.

Its 1,318 CPO sales last month were up 17.6 percent year-over-year. And with 17,338 CPO sales, 2017 was the best year ever for VW CPO and a 13-percent year-over-year gain.

Hyundai sold 716 certified vehicles in January, up 32 percent year-over-year. This was its strongest month in six years. In 2017, Hyundai sold 9,125 certified vehicles, compared to 6,101 in 2016.  

At Porsche, January CPO sales were up 19 percent at 143.  This follows a 2017 that saw the brand sell 2,150 certified cars for the year (up 13 percent).

 “Porsche Approved Certified Pre-Owned had a stellar year in 2017 with growth above expectations.  With a brand such as Porsche and its rich history, it is wonderful to see that the passenger car business is just as healthy as the ever growing SUV segment.  Pre-owned 911s and Panamera had a great year respectively — and Macan did exceptionally well bringing new clients into Porsche Centre showrooms and ultimately, the Porsche family,” Farouk Giga, national pre-owned manager at Porsche Cars Canada, said via email.

“2018 promises more of the same with January already showing strength over the same time last year.  We look forward this year to an increase in Porsche Approved CPO market share, higher pre-owned and Porsche Classic sales but most importantly, providing the best client experience in the business,” Giga said.

Over at Audi, there were 618 CPO car sales in January for a whopping 45.8-percent year-over-year gain. In 2017, Audi sold 8,441 units, increasing its annual sales by 23.5 percent.

Volvo sold 148 certified vehicles for January, up 2.1 percent from January 2017.

For full-year 2017, it moved 2,097 CPO vehicles, down from 2,324 a year earlier.  Volvo’s objective for 2018 is to move 2,806 certified vehicles.

At Toyota, there were 2,213 CPO sales in January, up from 1,986 a year earlier.  Toyota moved 31,010 certified vehicles in 2017, compared to 25,880 in 2016.

October a strong CPO sales month for Canada

CARY, N.C. - 

Based on results reported by automakers, October was a solid month for the Canadian certified pre-owned vehicle market.

For instance, Hyundai sold 938 certified vehicles in October, a major increase from 627 a year ago. This was its best October since 2013.

Year-to-date, its numbers are up 56 percent with 7,732 CPO sales.

Volkswagen moved 1,605 certified units for the month (up 29.4 percent), and it has sold 14,568 CPO vehicles through 10 months of the year (up 11 percent).

Mercedes-Benz moved 1,130 certified vehicles, a 20.2-percent year-over-year increase and its strongest CPO October.

Through 10 months, Mercedes has moved 11,585 CPO units.

Toyota sold 2,590 certified vehicles in October, compared to 2,344 CPO sales a year ago.

Year-to-date Toyota has moved 26,325 CPO units, versus 21,542 in the same period of 2016.

Porsche moved 196 CPO units for the month, up from 162 a year ago.

Year-to-date sales are at 1,783 units, up from 1,535 through 10 months of 2016. 

Kia Canada announces CPOs must earn CARPROOF VHR badge

TORONTO - 

Kia Canada and CARPROOF recently announced that in an effort to make used-car transactions more transparent, all vehicles in Kia’s CPO program must now qualify for the CARPROOF Top Condition badge found on the company’s VHRs.

Kia Canada CPO vehicles have to meet CARPROOF’s strict safety and condition standards to earn the VHR badge.

CARPROOF introduced both Top Condition and Low Kilometers badges in January.

“Kia Canada is extremely excited to further enhance our partnership with CARPROOF to increase transparency into our Certified Pre-Owned vehicle program,” Kia Canada national remarketing manager Stephane Lubin said in a news release. “Incorporating Kia CPO badging into CARPROOF reports will naturally expand our ability to provide reliability, dependability and peace of mind for our consumers.”

The Top Condition badge will appear on Kia CPO vehicle VHRs until they are retailed, according to Kia Canada.

“This initiative is an effective way for automotive dealers to use a CARPROOF VHR as a selling tool,” added Mike Foster, CARPROOF OEM and lender national manager “In addition, the permanent CPO record can help with resale value when the time comes to trade the vehicle in again.”

Hyundai’s new CPO program designed for ‘customers and dealers’

MARKHAM, Ontario - 

Hyundai Auto Canada’s new certified pre-owned program, known as H Promise, was launched last year and is designed to be a product that adapts to its market environment.

Joel Gregory, national sales manager for CPO and remarketing at Hyundai Auto Canada Corp., told AuSM Canada that Hyundai’s previous CPO program was “appropriate for its time,” but had not kept up with the demands of the marketplace.

“Working with both our dealer network and business partners, we took a bold step to offer an entire suite of plans including a choice of deductibles for the first time,” Gregory said.

Gregory shares he has actively been involved in the pre-owned industry for his entire career — coming up on 25 years now.

“During that time I have experienced first-hand the tremendous growth in CPO and the changing needs of both consumer and dealer alike,” he said. “In my opinion, CPO should be an integral component of every dealership’s marketing strategy.”

Making sense for ‘both the consumer and the dealer’

So, what makes H Promise stand out?

According to Gregory, for a corporate lead program to be successful, “it must make sense for both the consumer and the dealer.”

That turned out to be the backbone of H Promise as the CPO program was restructured. The automaker involved its product team, service team and a select group of dealers to assess the CPO program during its restructuring.

“We didn’t simply look at the CPO programs offered by our competitors,” said Gregory. “We identified best practices within the industry as a whole, then adapted those practices.

“We recognized the impact that technology was having on repair costs and how this factored into a customer’s purchase decision,” he added.

The CPO program evolved from three basic plan choices to a program with 26 options and the ability for dealers to “tailor” a plan to their customer’s needs.

H Promise performance

With the introduction of H Promise, Hyundai Auto Canada now has more dealers selling CPO than were active in the previous program.

And according to Gregory, those dealers that had previously “embraced” the importance of CPO are now selling more than ever before, and spikes in sales of 50 to 100 percent are not uncommon.

In fact, total August CPO sales for Hyundai Auto Canada were up 42 percent from July and grew 60 percent year-over-year. What factors have contributed to this impressive growth this past summer?

“Simply stated, dealers and consumers alike are seeing real value in the program,” said Gregory. “Combine a great product like Hyundai vehicles with a great certification program, and you have a recipe for success.”

As for what vehicles are performing particularly well in the H Promise program, Gregory said, “We are very pleased with our entire pre-owned inventory.”

And the Hyundai Elantra has been performing particularly well in the ultracompetitive sub-compact segment.

When it comes to sourcing, where do Hyundai Auto Canada dealers turn to for CPO-worthy inventory? The short answer: trade-ins, factory programs and the auction.

And with the recent introduction of Hyundai Capital, the automaker now has its own captive finance division in Canada.

“Joint ventures have also lead to strategic leasing programs, which have become an excellent source of pre-owned inventory as leases mature,” Gregory said.

Further, Hyundai’s fleet industry leaders work closely with key commercial accounts and dealers to remarket these types of vehicles.

“It goes without saying, a strong, industry-leading CPO program provides the needed incentive for our dealer network to not only help remarket fleet vehicles, but also to expose them to a growing number of consumers who have never owned a Hyundai before,” Gregory said.

Hyundai Auto Canada dealers market to their customers using a full suite of CPO-branded point-of-sale material. Gregory added, “My team and I are hard at work to continually improve our digital footprint.”

Hyundai Auto Canada sees the future of pre-owned and CPO moving towards a digital environment, and “are in the process of developing a much more robust section on our corporate site,” Gregory said. When asked to explain what makes the new H Promise special, Gregory had this to say: “Simply put, it’s both a customer- and dealer-friendly program.”

Canadian CPO market seeing the 'best' of times

CARY, N.C.  - 

Through three quarters of 2017, one turn of phrase common among automakers reporting Canadian certified pre-owned vehicle sales is “best.”

Whether that’s best year or best September, Canada’s CPO car market is rolling.

Audi, for instance, is enjoying its best certified pre-owned sales year in history, the company said.

It has sold 6,497 CPO units through nine months, which is a 27.7-percent increase from the first three quarters of 2016.

Audi also had its best September ever for CPO sales, moving 792 certified vehicles for a 43-percent hike.

Up next, Volkswagen had its best September ever for CPO, having sold 1,681 units for a 33.7-percent gain. Sales through nine months are up 8.8 percent at 12,963 units.

Mercedes-Benz’s certified pre-owned sales through nine months of 2017 have climbed 4.9 percent, with dealers having moved 10,455 CPO vehicles. In September, CPO sales were down 3.6 percent year-over-year at 1,206.

Porsche has sold 1,587 certified vehicles through nine months, compared to 1,373 a year ago. Its September sales of 202 CPO vehicles were up from 178 in the same month of 2016.

Hyundai’s year-to-date certified sales have climbed 58 percent, reaching 6,812 units through nine months. The automaker had its strongest September in five years, having sold 810 CPO units (up 50.5 percent).

Toyota has sold 23,735 certified vehicles through nine months, up from 19,198 a year ago.  It sold 2,731 CPO vehicles in September, up from 2,419 units a year ago.

At BMW, the pre-owned division (which includes certified and non-certified used vehicles) sold 1,969 units for the month. This was the strongest September ever for BMW pre-owned and a 17-percent improvement from a year ago.

BMW’s pre-owned sales are up 16 percent at 16,950 sales through nine months.

Volvo posted 1,631 certified sales through three quarters and 160 sales in September. 

With this kind of momentum industry-wide, it’s possible that for the Canadian CPO market, the “best” days are ahead.

Records roll in for Canadian CPO car sales

CARY, N.C.  - 

August was a hot month for automotive brands and their certified pre-owned vehicle sales in Canada.

Audi, for example, had its best-ever CPO month, moving 974 units in Canada. That beat year-ago figures by 59 percent.

Through eight months, Audi is up 26 percent with 5,705 sales.

Mercedes-Benz had its strongest August on record for CPO, moving 1,222 units. That’s up 10.4 percent year-over-year. Through eight months, certified sales are up 6.1 percent at 9,249 units.

Volkswagen had a record August, with 1,801 certified sales, a 35-percent spike. Year-to-date, VW has moved 11,282 CPO cars, a 5.8-percent lift.

Subaru was up 12.7 percent in August with 267 certified sales; year-to-date, it’s up 20.3 percent with 1,799 CPO sales.

Toyota sold 2,814 certified vehicles in August, up from 2,461 August 2016. Year-to-date sales have climbed from 16,782 units to 21,005.

Hyundai’s certified sales climbed from 606 units in August 2016 to 862 last month. The company said it has seen 12 straight months of year-over-year sales.

Through eight months of this year, Hyundai has sold 6,028 certified units, up from 3,755 in the same period of 2016.

Porsche sold 208 CPO cars for the month, up from 163 in August 2016. Year-to-date sales are at 1,386, up from 1,195 a year ago.

 

Strong CPO sales roll on in Canada

CARY, N.C. - 

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 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. 

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