Honda, GM Cracking Down On Non-Compliant CPO Programs

Cameron Aubernon
by Cameron Aubernon

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.

Automotive News reports Honda CPO manager Brian Butts and GM CPO chief Larry Pryg both said most of the dealerships under their watch properly administer their respective programs, but those who do not are temporarily suspended.

For Honda, those suspensions are part of why CPO sales are down in 2014; production cuts — and the subsequent low off-lease volumes — following the 2011 Tōhoku earthquake and tsunami account for the rest of the missing sales. Sales dropped 7 percent in comparison to 2013 to 186,248 units.

Meanwhile, GM’s program saw a 10 percent increase in sales through August compared to last year, with 255,077 units leaving the used lot.

As for how those programs are monitored, Honda uses third-party companies to certify compliance, while GM Certified sends out its own reps to visit dealerships one to four times annually; those who comply receive fewer visits.

Honda’s program, which is undergoing a makeover as of this writing, requires non-compliant dealers to submit a plan and work with field staff to be able to sell CPO vehicles again after the 90-day suspension is lifted. GM also removes non-compliant dealers from the program, though no length of time was stated by Pryg.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

More by Cameron Aubernon

Join the conversation
13 of 38 comments
  • Zip89123 Zip89123 on Sep 23, 2014

    Hey GM, Kuni Chevrolet would be a good place to start. Signed, a former GM owner.

  • Kendahl Kendahl on Sep 23, 2014

    CPO implies that a competent mechanic has performed a detailed inspection of the vehicle and repaired everything that was bad or even close to bad. According to my trustworthy independent mechanic, the inspection is often cursory and repairs are limited to what has already failed. Post sale failures that should have been caught during the inspection are fixed under the extended warranty that is usually part of the CPO program. Done that way, a CPO vehicle is just another used car with an extended warranty you bought by paying a higher purchase price.

  • Mikey Mikey on Sep 23, 2014

    Last winter I made a complicated deal involving two trade ins. I was happy with the offer on the truck. It was my 2011 2SS Camaro with 9000 KLM's {less than 6000 miles}, that was the sticking point. We were 500 dollars apart. The used car guy said "we have to do a multi point check on the Camaro before we can sell it" I called B.S. I said to the dude "you and I both know that when the Camaro comes out of my garage it goes straight to the front row of your used car lot". Two days of haggling later , we split the difference. I drove the Camaro to their lot, it was on the front row that afternoon.

  • Redliner Redliner on Sep 23, 2014

    Reminds me of when I recently went to a local Toyota dealership to look at a low mile CPO car. When I got there, the pictures did not match the ones listed online, and the car had major body damage on the passenger side. The salesman said, "oh, don't worry, it's CPO, so after it comes out of the body shop it will have a great warranty." I couldn't believe they expected me to buy a "CPO" car that literally had thousands of dollars in body damage.

    • See 6 previous
    • Snakebit Snakebit on Sep 24, 2014

      @highdesertcat Like MBella has posted for MB, my experience with Acura is similar. Tires that need replacement demand OEM Michelins or their current Michelin equivalent, because no car will be considered for CPO program if it has 100,000 or more miles things like timing belts are inspected but usually not replaced routinely, mainly because it's typical that the car under CPO consideration has in the range of 40,000 to 70,000 miles and the suggested change interval is 90,000 miles. Doing an oil and filter change IS done routinely. A note about T belts and some Acuras. The manufacturer was gradually going back to using timing chains on cars like TSX and RSX rather than rubber timing belts.