CARY, N.C. -

Auto Remarketing recently heard from CarMark Certified Pre-Owned dealers about what kind of results they are seeing with the program. One of the dealers represents an independent lot established in 1974. Another CarMark dealer joined the program after losing his franchise designation because of General Motors’ restructuring.

What do both stores have in common? They’re witnessing strong success at boosting profits and customer relationships with CarMark Certified vehicles.

CarMark Certified is a program offered exclusively to members of the Pre-Owned Automobile Dealers Alliance (POADA). Two alliance members shared just before the close of the year how well CarMark Certified vehicles have been received by their customers since the program rolled out nationwide last July.

Randy Beeninga owns AutoFocus, an independent store in Greensboro, N.C. Ken Champagne is president of Champagne Motor Car Co., of Willimantic, Conn., a former Chevrolet franchise. During a recent POADA Webinar called Pre-Owned LIVE, both Beeninga and Champgne said they’ve been able to efficiently and quickly turn CarMark vehicles.

“Any time you can sell anything with confidence, it comes off very well to the customer,” Champagne insisted. “They’ve responded to it very well.”

What’s prompting these positive buyer responses is a nationwide certified program administrated by APCO/EasyCare of Atlanta.

CarMark Certified has a lot of similarities to a manufacturer program, benefits that make the program very attractive to consumers. The in-service date limited powertrain warranty program is for 72 months/100,000 miles for vehicles that have some original manufacturer warranty remaining, are no more than four model years old with less than 60,000 odometer miles. There is also a powertrain warranty for vehicles outside these guidelines with less than 80,000 odometer miles. In addition to the limited warranty package, CarMark Certified provides consumers with a 116-point physical inspection, trip interruption benefit, rental car reimbursement, towing benefit and wheel and tire coverage.

Despite the similarities to a franchise CPO program, CarMark officials stressed that franchised dealers using the program can only certify off-make vehicles, or vehicles not eligible for their manufacturer’s certified program.

“As an independent, customers come on the lot and they just don’t think of an independent offering any kind of warranty on the car,” explained Beeninga, who ramped up his used-vehicle operation four years ago to include about 50 units on the lot.

“It (CarMark) was a great boost. You tell them this car has a free warranty up to 100,000 miles and they just look at you thinking they didn’t expect that. Then they’re off driving the car,” he continued.

For Champagne, CarMark is filling the vacuum left when he lost his Chevrolet franchise. He said CarMark is taking the place of that franchise appeal his store had for more than two decades.

“We were looking for product that would make sense to replace the franchise,” Champange stated.

“Look and see what’s out there. That’s what I did,” he advised to other dealers who might be in the same situation. “I went with CarMark because I thought there was the potential upside to this program. The parent company is a strong company. The national part of it is fantastic. It pleases you; it pleases your customer.”

Beyond the powertrain warranty already associated with CarMark that covers the engine, transmission, drive axle, seals and gaskets, both Beeninga and Champagne described the success their salespeople had in upgrading buyers into the program’s add-on benefits. Buyers can choose a back-end upgrade that covers elements such as towing, rentals and roadside assistance.

Of the CarMark vehicles sold in the latter part of last year, each dealer said the majority of the transactions included the upsells thanks to consumer appeal.

“Customers are afraid of service,” Beeninga conceded. “You have to make them understand it. You have to make it simple. You have to make them believe in you. You have to make them understand that you’re not out there to hurt them. The certified program does all that in one swoop.

“We’re fourth generation service customers,” he went on to say. “There is nothing worse than selling a contract to a customer and the company does not live up to their contract. That is the worst feeling ever because you’ve dealt with these families for 37 years. You just can’t do it. The company is so strong compared to all the other warranty companies out there. You’ll service your customers the way they want to be serviced.”

Champagne even revealed that profits or ROI for CarMark Certified vehicles are several hundred dollars higher than other units in his inventory. This is a profit potential he’s welcoming greatly after losing his franchise status.

“I think this one has got some legs to really take off. I’m all in on it,” Champagne declared. “We’re trying to brand ourselves. I tell our customers that you might not have heard of CarMark today, but one year from now we’re going to be it.

“If you’re out there considering something for your store, take a long look at CarMark,” Champagne suggested. “It’s definitely working for us. I don’t know if I would be in the same position without it today. I feel there’s a light at the end of the tunnel where a year ago I didn’t know if we’d even be here.”

There is a requirement for dealers to be POADA members in order to participate in CarMark Certified, although there are no POADA membership dues for qualified dealers. Also, there are no fees or royalties for a dealer to either join POADA or to be involved with CarMark.

More CarMark Certified information may be obtained by calling the CarMark hotline at (800) 628-4635, visiting the CarMark website at www.carmarkcertified.com or the POADA website at www.poada.biz.