IRVINE, Calif. -
The momentum kept rolling in the industry’s certified pre-owned segment during October, especially for a trio of automakers that posted best-ever CPO months, according to Autodata Corp. 
With a double-digit improvement from October 2009, the certified segment made its eighth consecutive month of year-over-year gains, and year-to-date sales showed upward movement for the fourth straight month.
Specially, there were 141,651 CPO units sold, a gain of 23 percent year-over-year, Autodata noted. This marked a 4.7-percent month-over-month rise.
Through the first 10 months of the year, the market moved more than 1.37 million certified vehicles and was 4.8 percent stronger than the pace through this point of 2009.
And not only did three automakers break all-time CPO records, but several others had their best-ever Octobers for certified sales, and most of the companies included in Autodata’s analysis showed year-over-year improvement.
So, what advice would the CPO leaders of some of the more successful automakers give to dealers to help them lift certified sales?
Several managers shared their advice with Auto Remarketing, while also delving into the month’s certified results.
Beginning with Mazda, which was one of the three OEMs that posted its strongest CPO month of all time, its manager of remarketing and CPO Eric Watson said: “Dealers will see increased sales and gross if they consistently follow the certification process, properly merchandise the car on their lot and present the value of the program in the sales process.”
As for October, Mazda moved 1,360 CPO vehicles for a 271-percent gain over the year-ago period.
Through 10 months, Mazda had moved 7,610 certified units in 2010, an improvement of 83 percent.
The automaker rolled out a “revamped” CPO program in July and has seen dealer participation increase in droves, said Watson. Specifically, dealer participation back in June was 18 percent, but that has since climbed to 50 percent.
Continuing on, Mercedes-Benz had CPO sales of 7,120 units in October, a 31.1-percent hike. Year-to-date sales stood at 68,088, which was 9.5 percent stronger than the year-ago period.
Scott Penza, manager of pre-owned operations for Mercedes-Benz USA, dispensed some advice for dealers to lift CPO sales, emphasizing the dealers focus on the “basics.”
“In the current market place there are so many technologies aimed at providing car dealers with a competitive advantage,” he noted. “A lot of customers are being educated locally on the benefits of CPO, and it is actually some of the basics that allow successful dealers stand out.
“One of the common elements I find when visiting successful dealers is the actual presentation of certified pre-owned,” Penza continued. “That is a universal approach to reconditioning vehicles to the highest possible standard in addition to the dealership promoting CPO in the showroom or dedicated space with knowledgeable salespeople.
“Each CPO vehicle is different but the program is universal. A customer experience should be the same whether a customer visits a Mercedes-Benz certified pre-owned dealer in New York, Texas or California,” he added.
Next up was Toyota, which has its best October CPO performance on record.
Sharing some CPO-related advice, Jason Cropper, Toyota Certified Used Vehicles’ operations manager, noted that the best advice comes from the TCUV associates in field offices.
“Right now our field organization continues to work with the dealers on their in-dealership e-commerce processes. They are working with the dealers to identify how customers are researching their next vehicle purchase and how to connect with that customer has become essential to our every day sales process,” Cropper pointed out. “Our dealers are doing a great job of connecting with customers through all new avenues and in turn selling those customers a TCUV.”
He added: “Just take Auto Remarketing’s article regarding the recent J.D. Power study, which showed 51 percent of customers use online classified ads as a method to shop for a vehicle, and more than two-thirds indicate they intend to purchase a CPO. The dealers understand this changing market better than anyone; it is our job to help them utilize the tools and processes to adapt to that changing market.”
Looking at the monthly results, the brand moved 29,239 CPO units in October, which was up from 20,845 certified models sold in the year-ago period. The previous record October was set in 2007, as Toyota moved 21,532 certified vehicles.
In 10 months, it has moved 263, 529 CPO units, up 17.1 percent.
“TCUV is very pleased with our October sales results. Our dealers continue to do a great job of selling TCUV in a tough and competitive business environment,” said Cropper.
“The dealers continue to see the value TCUV provides for both themselves and the customer. TCUV continues to help the dealers ensure they have balanced dealership operations while also helping to provide customers with the added piece of mind many are looking for,” he added.
Meanwhile, Lexus also notched its strongest October for certified sales on record, with CPO sales coming in at 6,009. This marks a 6.5-percent increase from October 2009, which had been Lexus’ strongest October in the CPO segment.
Year-to-date certified sales through 10 months have hit just more than 56,000 units, a gain of 7.3 percent.
Continuing on, Volkswagen also had its best-ever October, as it improved its CPO sales 68.4 percent on a year-over-year basis to 5,091 units. Year-to-date sales stood at 45,709 certified units at the end of October, up 19.1 percent from the same period of 2009.
VW’s Rob Martin stressed that CPO dealers can bolster sales by focusing on their quality of their online marketing and emphasizing to shoppers how the certified segment can bring “peace of mind.”
“My top tip for a dealer to drive CPO sales would be to make sure online marketing of the units is top-notch, including excellent photos and video, and well-detailed descriptions that tell about the vehicle, and not just the same info copy and pasted over and over for multiple vehicles,” he shared.
“Also, make sure to highlight CPO program attributes that will give the customer peace of mind and the ability to shop and ultimately buy with confidence,” Martin added.
Next up, Audi posted CPO sales of 2,400 in October, compared to 1,845 a year ago. This was Audi’s strongest October in the certified segment since 2004. Not to mention, the 30-percent year-over-year improvement Audi made is “record-breaking,” according to the automaker.
Through the year’s first 10 months, Audi had moved 23,425 CPO units, down from 24,884 units through October 2009.
Among domestic automakers, Ford’s certified sales total in October was 10,819 units, an increase of 15.5 percent year-over-year. Its year-to-date sales through October were at 112,263 units, down 1.3 percent year-over-year.
By brand, Lincoln Mercury posted CPO sales of 1,718 units in October, up 25.8 percent from the prior-year period, while Ford showed a 13.7-percent gain, reporting certified sales of 9,101 vehicles.
“The 15.5-percent increase in year-over-year CPO sales for the Ford and Lincoln Mercury programs is a result of the efforts of our dedicated dealers,” stated Glenn Burke, CPO manager for the automaker.
“Year-over-year, dealers have certified more of their used inventory — which is a critical step to selling more profitable certified units,” he added. “The collective dealer and Ford Motor Co. focus on implementing the right marketing and showroom programs will continue to drive CPO sales.”
At General Motors, all of its certified brands combined to sell 24,418 units in October for a 9.5-percent gain. Through October, they had sold 252,725 units, down 17.1 percent from the year-ago period.
GM Certified Used Vehicles moved 22,217 units in October, and this included CPO sales for Buick, Chevrolet, GMC, Pontiac and Saturn. GM Certified sold 19,784 units in October 2009, and this included sales for Buick, Chevrolet, GMC, Oldsmobile and Pontiac, but not Saturn.
“October sales of GM Certified Used Vehicles represent our second consecutive sales increase this quarter,” stated Larry Pryg, manager of GM Certified Used Vehicles. “We’re on track to continue building on last month’s momentum and closing out the year with strength.”
Through the first 10 months of 2010, GM Certified (Buick, Chevrolet, GMC, Pontiac, Saturn) sold 230,322 units. In the same period of 2009, GM Certified (Buick, Chevrolet, GMC, Oldsmobile, Pontiac) sold 266,282 units.
For comparison purposes, Saab was not included in any of the monthly or year-to-date totals for either period. It moved 212 CPO units in October, a 41.4-percent decline.
Over at Chrysler, its brands combined to sell 9,455 CPO units in October, a gain of 37.6 percent from a year ago. Year-to-date certified sales stood at 89,616 units.
Breaking it down by brand, Dodge moved 3,768 CPO units in October, compared to 2,812 CPO vehicles in the year-ago period. Jeep’s certified sales reached 3,264 vehicles for the month, up 46.1 percent year-over-year.
The Chrysler brand CPO sales hit 2,423 units, which was a 32.9-percent improvement.
Moving along, BMW moved 9,144 certified vehicles during the month, which was off 12.6 percent from October 2009. Year-to-date sales were at 94,313 units, down modestly (0.7 percent) from last year.
“As we approach the end of Q4 in 2010, continued efforts in managing their portfolios, using the many BMW Financial Services offerings, and merchandising CPO vehicles online should be a major focus in the pre-owned department,” Joan Bowen, pre-owned manager of marketing for BMW North America.
Volvo sold 1,224 certified vehicles in October, down from 1,745 CPO units in the year-ago period. Through October, it had moved 14,854 CPO vehicles, compared to 19,935 certified rides through the first 10 months of 2009.
Honda sold 17,907 CPO units in October (up 35.9 percent) and moved 170,853 certified units in the first 10 months of 2010 (up 23.8 percent).
Acura’s CPO sales hit 3,931 units for the month (up 37.8 percent) and its year-to-date tally stood at 37,294 CPO vehicles (up 8.9 percent).
Moving on, the Nissan and Infiniti brands combined to sell 7,765 certified units in October, compared to the 6,638 CPO vehicles they sold in the same period of 2009. Year-to-date, their sales hit 77,945 CPO vehicles, compared to 66,725 units in the year-ago time frame.
By brand, Nissan moved 6,722 units in October (up 18 percent) and Infiniti sold 1,043 units (up 11.1 percent).
Subaru posted certified sales of 1,955 vehicles, compared to 1,500 in the year-ago period. Its year-to-date sales through October stood at 16,628 units, a 30.4-percent gain.
Hyundai’s CPO sales reached 2,444 units for the month, up 76.7 percent. Year-to-date sales were at 18,348 (up 46.5 percent)
Kia moved 519 certified vehicles in October (up 38 percent) and its sales through 10 months totaled 5,906 CPO units (up 66.2 percent).
Among other automakers, Porsche sold 565 certified units in October for a 3.7-percent gain.
Jaguar’s CPO sales totaled 384 vehicles (up 2.7 percent) and Land Rover’s reached 266 vehicles (down 27.5 percent).
Mini sold 143 certified vehicles in October, up 2.9 percent.
Mitsubishi sold 40 CPO vehicles, compared to 44 units a year ago. Bentley was estimated to have sold 30 certified vehicles.
Maserati’s CPO sales reached 21 units, compared to 15 CPO units a year ago.