Certified pre-owned vehicles can be gateway to new-car sales
Three-fourths of certified pre-owned customers are satisfied with their CPO experience and 85 percent of CPO owners are likely to buy from the same dealership, according to a new study by AutoTrader.com.
Consumers are more open than ever to certified pre-owned vehicles, and if dealers and manufacturers can turn shoppers into owners, they are well positioned to build long-lasting relationships with those consumers, said Rick Wainschel, vice president of customer insights at AutoTrader.com.
Experienced with CPO is at an all-time high, with 75 percent of new car shoppers and 45 percent of used car shoppers familiar with it. An impressive 84 percent of new car shoppers are willing to pay more for a CPO vehicle, up 22 points from a year ago. But the amount of the premium they are willing to pay is down. New car shoppers said they are willing to pay $2,032 more, down from $2,434 in 2013.
Although CPO buyers are willing to move up to a new car the next time they buy, dealers need to work to convert CPO customers to new-car buyers. The study found that 52 percent of first-time CPO owners are likely to buy a new vehicle from the same brands, but only 40 percent of repeat CPO owners would do so.Download Bulletin PDF