Are you still generating enough used car leads? Are you even aware of another shift in the behavior of car shoppers today? A study completed by AutoTrader.com and Morpace revealed that car shoppers have a wider range of options when it comes to the type of car that they will buy.
According to the report, 60 percent of the new-car shoppers surveyed say they consider buying a certified pre-owned (CPO) vehicle, and nearly 30 percent of this group is considering to buy a CPO vehicle for the first time.
The top reasons cited for considering CPO vehicles are peace of mind and warranty coverage, with nearly 70 percent and more than half of the car shoppers surveyed saying so, respectively. The respondents indicated that since CPO vehicles have warranties from their respective original manufacturers, buying one gives them a peace of mind. Further, a considerable number of car shoppers, almost 70 percent, are willing to spend more on CPO vehicles than on non-certified used cars.
This year, CPO sales was recorded with a 7.7 percent increment from last year’s sales. CPO units sold in March this year likewise increased to more than 174,000 units, increasing by nearly 17 percent from the number of units sold the previous month.
If you have been monitoring car shoppers’ behavior for the last two or three years, you should notice that there have been significant and interesting shifts, same thing that the vice president of automotive insights in AutoTrader Rick Wainschel observed.
With that in mind, you should be taking advantage of the opportunity now by formulating some strategies. The study implies that your sales team can freely offer your used car leads other car options. Of course, there are still several factors, in general, that car shoppers consider when buying a car. Moreover, the likelihood of a car shopper to buy a CPO vehicle does not solely depend on the results of the study but still on several factors. Nonetheless, you already know that it is not far from possible for new-car shoppers to turn into used car leads.
The next strategy is basic: Keep a CPO customer’s loyalty. The reasons are as well basic and obvious. Loyal customers can come back for another CPO car purchase or for service or they can refer your dealership to their family and friendsâ€”things that can boost your dealership’s sales with less effort on your part.
Lastly, educate your prospects. Understand that not all car shoppers know what CPO programs are all about. Basically, CPO vehicle buyers get to buy a used car that is almost like new at a used-car price. Pretty good deal, isn’t it? But are your prospects aware of the benefits they can get from your CPO program? Make sure they do because many car shoppers today are either skeptical or have a wrong idea of it.