Online Preview: CarMark Dealer Explains CPO Benefits
Tim Ryan has worked for dealerships that have sold as few as 60 to 70 used cars a month, and he has worked at stores selling as many as 400 or 500 used units each month.
But the demand for pre-owned cars in Columbus, Ohio — home of Bob Caldwell Chrysler Jeep Dodge Ram, where Ryan serves as general sales manager — is probably as strong as you will find in any American city, he said.
Ryan has been in this market for about 27 years, and said the pre-owned space in Columbus is “an extremely big market,” where a dealership has to distinguish itself from the pack.
“The Columbus market is a little more demanding than a lot of marketplaces, because of the selection,” Ryan said. “You have to justify your price, and you have to make yourself different than what your competitor is. If not, you’re just another used-car lot.”
So how does Ryan differentiate the stores he manages? One way is through search-engine optimization.
“We heavily market ourselves and use a lot of SEO,” he said, noting that in light of SEO and the advent of the Internet, the industry has changed entirely.
“The only thing permanent in this business is change,” Ryan added, “and the ability you have to adapt to change is crucial.”
Certainly causing some waves as part of that change is the influence of social media, as well. And given that impact, how you treat the customer and back the product you’re selling is vitally important.
“Everybody has a car. Everybody has a piece of metal with a title attached to it,” Ryan said. “The only thing that differentiates you from your competitor is how that customer’s treated and what they get along with the product.”
Customers at Bob Caldwell Chrysler Jeep Dodge Ram will now be getting the benefits of the CarMark Certified Pre-Owned Program, as the dealership has recently signed onto the third- party CPO program administered by National Auto Care and owned by S&A Cherokee.
“At end of day, the warranty is only as good as the people that are backing it,” Ryan said. “And I have had nothing but tremendous success with National Auto Care.”
When asked what his hope is for his involvement with CarMark CPO, Ryan had this to say: “I won’t say it’s a hope. I believe it’s going to be increased sales and increased back-end revenue. I’m 100 percent sure of it. It’s proven. It’s just how much we stand behind it, and if we’re committed to the program, this program will work.”
Be it third-party backing by CarMark or the factory-certification variety, CPO certainly gives dealers like Ryan and his team opportunities to not only increase confidence in the used-car shopper at the store, but also generate ancillary revenue, future business and continued loyalty.
“People look for that reassurance when they buy a car. The certified brand, the certified name, carries a lot of weight,” he said, noting the tremendous strides made by CPO in 2014 alone.
Ryan points out that, “the first thing searched on the Internet outside of the word ‘used cars,’ is the word ‘certified.’ No. 1 search in SEO.”
Beyond that, Ryan has observed in his own operations that warranty penetration is much higher on certified cars than non-CPO used vehicles.
To learn why, read the full story in the upcoming June 1 print and digital editions of Auto Remarketing.