TORRANCE, Calif. -

How has the certified pre-owned market managed to be this strong and reach consecutive years of historic sales? It depends on whom you ask.

Among the national CPO managers who shared their thoughts with Auto Remarketing, there were several different reasons cited when they were asked why there has been industry-wide growth in certified sales this year.

At Toyota, TCUV/TRAC retail and operations manager Mia Phillips boiled it down to the improving inventory situation, noting the influx of trade-ins.

“One of the major reasons that CPO sales continue to improve is that inventory is beginning to grow at a much quicker pace,” she said. “With the new-car industry predicting anywhere from a 14.1 million to a 14.6 million SAAR in 2012 and several manufacturers enjoying year-over-year increases in new-vehicle sales each month, customer trade-ins are becoming a larger part of the used-vehicle source again.

“Because Toyota (like all Japanese manufacturers) was greatly impacted by the earthquake and tsunami in Japan last year, we were unable to provide our Toyota Rent A Car (TRAC) dealers with an adequate supply of new vehicles, which also limited a major source of their used-vehicle inventory,” Phillips continued. “This year, we’re expecting a 7 percent increase in TRAC sales — which again equates to an increase in our CPO vehicle inventory.”

Automakers are also improving the quality of their respective certified programs, says Volkswagen’s Scott Weitzman, noting the bolstered benefit packages and program enhancements from various OEMs.

In turn, he said, this across-the-board quality improvement has led to consumers putting more value on buying certified.

“We have seen the overall quality of CPO programs rising across all brands in the marketplace. Brands that did not previously take their CPO programs seriously are now adding more comprehensive levels of benefits and new innovative value-adds to their programs,” Weitzman explained. “This rising tide has helped enhance consumer perceptions of CPO across the industry and has benefitted all brands in the CPO arena.”

Meanwhile, Steve Golow — pre-owned and remarketing manager at Volvo Cars of North America — said, “I believe that many retailers are moving toward CPO as they face the current lack of lease returns and lost opportunities. By selling today's customers CPO cars, they are giving them a stronger product with a promise to see that car back in their shop for service well beyond the normal new car warranty period.”

Dealers across the board have played a major role in the CPO surge, as well. As such, several certified managers shared how their top dealers are thriving in the certified market.

“One contributing factor to our growth stems from our dedicated dealers. Many have realized the sales in financial benefits to having a stand-alone used-car team and facility,” said Brian Butts, manager of auto remarketing at American Honda Motor Co.

“They treat the showroom like they do on the new-car side of the business and have dedicated sales professionals that focus on certified and used vehicles only — no cross-selling,” he added. “Moreover, they have realized that a certified used vehicle turns more quickly and typically realizes more gross profit versus non-certified used vehicles.”

Editor’s Note: For the complete feature about what’s sparking CPO growth, check out the Oct. 15 print edition of Auto Remarketing.