Hollis Goode
Regional Vice President
EFG Companies
According to the NADA Used Car Guide, more than 3 million vehicles will reach the end of their leases in 2016. This represents a 35 percent jump in off-lease volume. With such a huge increase in reliable, late-model, pre-owned vehicles, the industry has already seen used vehicle prices drop to become more competitive. Now, dealers are more concerned with maintaining front-end profitability while still being competitive.
So, how can dealers accomplish their profitability goals while maintaining a competitive edge? The answer lies in certified pre-owned programs. Today’s consumers are much more concerned with getting more value for their money. That’s part of the reason why pre-owned vehicles have been top sellers in recent years. Dealers can further utilize this trend to sell higher-priced pre-owned vehicles with a CPO program.
According to proprietary research from EFG Companies, 32 percent of consumers would look to purchase a vehicle in the 61 – 150k mile range, of which, 62 percent would actively seek for that vehicle to be covered by a CPO program.