Certified Pre-Owned Captures the Limelight This Week

F&I department. "We're almost putting 90 percent in wrapped warranty," he pointed out.

However, another point he made was that certified dealers should not let their sales personnel make quotes to customers on wrap warranties. This should be done in the F&I department.

Warren Miller, of Power Chrysler Jeep Dodge, also highlighted the fact that all his store's CPO vehicles have a "worry-free" folder explaining the vehicles history and the reconditioning it underwent.

When it comes to advertising and marketing, interestingly enough, David Metter, of MileOne, said his company spends all of its advertising dollars online.

"Almost 100 percent goes to online efforts," he said. "Everybody is online at some point."

His company even does a lot of special online videos which it utilizes to target customers both online and via e-mail. Metter said this has led to a very high return on investment for MileOne.

Joe Negri, senior director of advertising/marketing at AutoNation, takes a different approach, saying "it's a multi-medium world."

For instance, he said, "AutoNation's site is full of information. The more info, the better. We sometimes forget that these cars are personal. Used-car managers need to look at it this way."

Negri also indicated that he is a big fan of broadcast. His team often does a shoot once or twice a year and gets enough footage to last all year.

When it comes to which sites are the best on the Web for reaching vehicle shoppers, Negri stressed that, "The number one site had better be your own."

Other top sites include AutoTrader.com and Cars.com, the auto professionals shared.

Baker also noted that in Maryland, Vehix.com can be a good site to reach Web shoppers.

CPO Forum Commences with Northwood's Lescota

Joe LescotaThe used-car industry's premier CPO Forum kicked off its two action-packed days of activities with Joe Lescota, chair of automotive marketing at Northwood University, taking center stage discussing the latest trends dealers should know when it comes to moving certified vehicles.

"It's almost a shame that it took a major recession to get the attention of franchised dealers in regard to getting into the certified used-car industry," he said.

"Certifying used cars is not a process — it's a philosophy," he stressed.

Lescota's presentation centers around the idea that one of the greatest opportunities to improve on CPO sales is to educate all employees as to the benefits for the consumers.

Dealers should even take it one step further by ensuring their staff is spreading the benefits of certified vehicles to citizens in their area.

"Dealers should conduct on-site information sessions with all of their employees from porters to switchboard operations to techs. Everyone. They need to be ambassadors of the dealership away from the dealership. Should they meet someone at a party, church or other function, they should know as much about CPO as a salesperson," he highlighted.

Dealers also need to ensure they are better promoting the advantages of certified.

Moreover, he pointed out, "Dealers spend a great deal of money reconditioning vehicles; however, it's one of the best-kept secrets of the industry. It's not promoted. Look at Web sites. There might be mention of the word ‘certified' but there is no explanation as to what it means. What's in it for the customer? Too many times there's not even a CPO logo on the site.

How Can Dealers Best Communicate CPO Advantages Online?

Howard PolirerAfter a luncheon honoring the Certified Dealers of the Year from various automakers, the CPO Forum picks back up with Howard Polirer and Anne Steinhauer, of AutoTrader.com, tackling the topic of consumers' perception of certified programs and how dealers and automakers can work together to better inform the public about the advantages of these programs.

"During these economically challenging times, now more than ever, there is a great opportunity for dealers to maximize the effectiveness of their OEM-supported programs, as car shoppers shy away from purchasing new vehicles," Polirer suggests.

"When the value of certification is properly communicated to consumers, certified cars, in many ways, offer shoppers the best of both worlds — a nearly new car, along with the peace of mind they would have hoped to achieve by buying a new vehicle," he added.

So how can dealers best merchandise these programs to consumers?

According to Polirer, "Branding certified inventory with the appropriate manufacturer logo is simply the tip of the iceberg. In order to really make these programs work for them in their online advertising, dealers need to make sure customers know that these vehicles come with multi-point inspections, roadside assistance, an almost new-car warranty and the like. That takes some work.

"Dealers who are effective at merchandising their certified vehicles are taking the time to write detailed copy associated with their listings that uncover the true value of these programs that appeal to car shoppers. The factories do a good job with this on the OEM sites and the OEM third-party listings, but dealerships can do a better job on their own Web sites. A video showing the attributes of a factory certified program is a good way to communicate these programs to consumers," he concluded.

© 2010 Auto Remarketing | All Rights Reserved | Contact Us | RSS