A New GENERATION of Certified
Moderator: Presenter: Bill Zadeits Dave Stevenson Executive Publisher Regional Sales Manager Auto Remarketing National Auto Care/CarMark
What is Certified? A certified used-vehicle has been put through a rigorous inspection of its mechanical functions and qualifies for a limited warranty. Upon sale of the certified vehicle , the buyer is provided with a limited warranty at no cost.
Certified Sales Today 2.08 million CPO cars sold in 2013 (Autodata Corp.) 1.13 million CPO units sold in first half of 2014 (Autodata Corp.)
And Demand is Growing 4,500,000 4,000,000 4,000,000 3,500,000 3,000,000 2,500,000 2,082,855 2,000,000 1,500,000 1,000,000 500,000 0 2013 (actual) 2016 (projected) Source: Manheim
CPO Value Proposition Higher F&I Profits Higher Profits Per Vehicle Faster Inventory Turns
CPO Profits and Turns Consumers are willing to pay as much as $3,000 more for a certified car vs. a non-certified. (NADA Used Car Guide) CPO cars turned twice as fast as non-certified in 2013 and the first half of 2014. (CNW)
CPO Value Proposition Non-CPO Vehicles CPO Vehicles Advantage Vehicles in Stock 50 50 Turns/Year 6.18 13.52 Twice as many turns/year Total Sold/Year 309 676 367 additional vehicles sold Gross Vehicle Profit/Year $618,000** $2,028,000*** $1,410,000 additional profit F&I Advantage**** $216,300 $473,200 $256,900 additional profit Total Annual Profit $834,300 $2,501,200 $1,666,900 additional profit *Assumes national averages comparing certified to used-car sales; individual dealerships may vary; no assurance of performance; chart for illustrative purposes only **Assumes $2,000 average profit times 6.18 turns/year ***Assumes $3,000 average profit (certified vehicles average higher gross profit) times 13.52 turns ****Assumes 40% VSC penetration, profit of $700 per VSC contract
Are you certifying all of the cars you can? Franchise dealers : Do you have a program to certify vehicles not eligible for your manufacturer’s CPO program? Independent dealers : Do you have a nationally recognized program to certify your vehicles?
Enter …
Who is CarMark?
Why CarMark? • Certify 10 model years , all makes and models • Certify vehicles up to 100,000 miles • Dealers choose from flexible terms (3/3, 6/6, or 12/12) • Dealers choose comprehensive or powertrain coverage • Roadside assistance, trip interruption, towing and rental car service are included
Marketing Support
Plus: • Press release to your local media announcing you as a new CarMark dealer • Logos for print and digital advertising • CarMark ad designs for dealers’ use in local marketing efforts (dealer responsible for costs of media placement)
Questions? Kyle Reese info@ carmarkcertified.com (800) 840-2567
www.ca carma rmark rkauto tofinance.com/ m/de demo mo info@ca carma rmark rkauto tofinance ce.co com
Questions? Kyle Reese info@ carmarkcertified.com (800) 840-2567
www.autoremarketing.com
info@ carmarkcertified.com (800) 840-2567
Recommend
More recommend
