Does Connectivity & Infotainment Resonate With CPO Shoppers?
One of the biggest selling points in the certified pre-owned market is arguably that CPO vehicles give customers a “like-new” experience while still buying a used vehicle.
As such, CPO customers tend to gravitate toward some of the benefits of certified (i.e. warranty coverage, delivery process, etc.) that are quite similar to those on the new-car side.
But what about the infotainment and connectivity features that have been cropping up in new vehicles the last few years? Those have started trickling into the late-model used-vehicle market — but do they resonate with CPO shoppers and help dealers sell a CPO vehicle?
Based on what automakers have told Auto Remarketing, there’s no clear-cut answer.
At Toyota, for example, there appears to be a distinct demand, says Brad Heagy, the retail sales & operations manager for TCUV / TRAC
“The product and equipment cadence in CPO offering mirrors prior new-vehicle sales, albeit delayed by the average number of years and/or age of the CPO fleet,” Heagy told Auto Remarketing for a story in the June 15 print issue. “We see this pattern consistent with emerging technologies in infotainment and vehicle connectivity.
“For example, in recent years as more of our product equipped with satellite systems and the latest Entune products return to market, we see consumer demand for this technology rise,” he continued. “The consumers’ vehicle performance expectations are really no different than with new vehicles.”
Heagy went on to note how this trend impacts the actual sales process.
“As you might imagine, the sales process must be refined to ensure that a quality product demonstration is provided which accentuates existing vehicle features,” Heagy shared. “This also can translate to higher endorsement of any subscription based vendor services.”
He also pointed out insight from TCUV marketing manager Steve Gallagher, who explained that “while our primary emphasis is correctly placed with interactive and electronic merchandising, we also benefit from vibrant point of sale materials that identify the infotainment and connectivity product advantages included in CPO models.”
But infotainment doesn’t always appear to a major point of concern for CPO shoppers. At Volvo, for instance, pre-owned and remarketing manager Steve Golow said the “value for money” and the “security of Volvo-backed coverage” seems to resonate more with CPO customers
“Volvo shoppers interested in a CPO car tend to be less interested in infotainment tools. Most often they are looking for value for money and the security of Volvo backed coverage,” he pointed out to Auto Remarketing in the same June 15 print edition story. “As a whole, our CPO shoppers come to Volvo as an educated decision, wanting a quality vehicle , and an award winning CPO program on the car.”
Editor’s note: This story and more certififed pre-owned sales details can also be found in the June 15 print edition of Auto Remarketing. In the upcoming July 1 edition, Auto Remarketing looks at the role of F&I in the CPO process.