It’s easy to think that certified pre-owned, CPO, programs that sell used cars that meet manufacturers’ standards for quality, are a fairly modern development in the car biz, but car companies have been helping their dealers sell ‘approved’ used cars for generations. Chevrolet had its “OK” used car program. Ironically, that branding apparently had its origins in the marketing of 1918 era American Motors (unrelated to the company of the same name formed by the merger of Hudson and Nash), which Louis Chevrolet helped found after he parted ways with Billy Durant and the Chevrolet company. Louis Chevrolet would hand sign the dashboard of each American Six with the rhyming “O.K. Chevrolet”. (Read More…)
Tag: certified pre owned
Honda and General Motors dealers beware: If you’re not strictly adhering to the rules laid out by the certified pre-owned overlords, you might find yourself suspended until conditions improve.
Currently, around 2.13 million cars will come off-lease by the end of 2014, up from 1.7 million last year. By 2016 and beyond, however, over 3 million vehicles annually will turn up on many a CPO and used car lot, replacing a long drought with an El Niño-esque flooding of the U.S. used car market.
New-vehicle sales are on the rise due not only to demand originally held back by the Great Recession, but by consumers coming off of their leases for their next latest and greatest.
In 2013, 3.2 million new cars and light trucks were leased in the U.S., an almost threefold increase from 2009. The 2014 Manheim Used Car Report, produced by one of the larger used vehicle auction companies, says that the auto industry will have to change the way it remarkets cars if it is going to successfully handle the increased volume of off-lease vehicles.
According to Automotive News, the Manheim report also warns that dealers who take in off-lease vehicles on behalf of lessors (so called ‘grounding’ dealers, “will not be willing or able to acquire the same large share of off-lease units that they have in recent years.” (Read More…)
“You can have any car you want. So long as it’s a Toyota or Honda.”
My parents had offered to split the costs of a new car with me back in 1994. That matching policy eventually included an awful lot of disclaimers and exclusions.
“No V8! No V6! No turbo! No stick! No convertible! No small car! No! Nein! Nyet!”
I eventually settled on a red Toyota Camry Coupe that served me well for 12 years and nearly 240k miles. It’s still on the road, which is funny because my brother, who had an equal bent on the Toyonda reliability supremacy, did something unusual recently.
He bought an Audi. Then he did something even stranger than that… he bought another.
Certified pre-owned vehicles are rapidly becoming the favored new car alternative in the marketplace.
Sales for March 2013 are up over 21% from March 2012 to 190,065 units. Sales for the quarter were nearly a half million units to 497,647. Up nearly 10% from a year ago.