{"id":1197,"date":"2016-08-31T18:33:00","date_gmt":"2016-08-31T23:33:00","guid":{"rendered":"http:\/\/efgintelligence.com\/dealershipcorridor\/?p=1197"},"modified":"2016-08-31T18:33:00","modified_gmt":"2016-08-31T23:33:00","slug":"benefits-cpo-lease","status":"publish","type":"post","link":"https:\/\/efgintelligence.com\/dealershipcorridor\/benefits-cpo-lease\/","title":{"rendered":"Benefits of a CPO Lease"},"content":{"rendered":"
\"Hollis
Contributing Author:
Hollis Goode
Regional Vice President
EFG Companies<\/figcaption><\/figure>\n

According to the NADA Used Car Guide, more than 3 million vehicles will reach the end of their leases in 2016.<\/strong> 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<\/strong> to become more competitive. Now, dealers are more concerned with maintaining front-end profitability while still being competitive.<\/p>\n

So, how can dealers accomplish their profitability goals while maintaining a competitive edge? The answer lies in certified pre-owned programs. Today\u2019s consumers are much more concerned with getting more value for their money.<\/strong> That\u2019s 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.<\/p>\n

According to proprietary research from EFG Companies, 32 percent of consumers would look to purchase a vehicle in the 61 \u2013 150k mile range, of which, 62 percent would actively seek for that vehicle to be covered by a CPO program.<\/strong><\/p>\n

And, of course, consumers understand that CPO vehicles come with a higher price tag than non-CPO vehicles because of their expectations. Clearly CPO programs fit a niche that consumers want, and for which they are willing to pay a higher premium.<\/strong><\/p>\n

Off-lease vehicles fit the CPO niche perfectly because the dealership often has greater knowledge and control of vehicle maintenance, making it easier and more cost-effective to perform the required inspections for CPO qualification.<\/p>\n

However, the buck doesn\u2019t have to stop with simply selling CPO vehicles. Have you considered the value of leasing CPO vehicles? You heard me right. Consider the value of taking those off-lease vehicles, certifying them, and putting them into another lease.<\/strong><\/p>\n

We all know the consumer benefits of leasing, but what about the dealer benefits? A recent Cox Automotive Analysis of Experian data demonstrates:<\/p>\n