Study shows CPO programs build brand loyalty

Most automakers spend tens-of-millions of dollars advertising their latest products with the hopes of snagging a few new customers, but a new study indicates the best selling tool could be getting shoppers behind the wheel of a Certified Pre-Owned vehicle.
According to a new study released by AutoTrader.com, 49 percent of CPO buyers are likely to trade up to a new vehicle from the same brand, indicating factory-backed used cars could be a gateway to future new car sales. However, brands need to snag owners early on in the CPO buying pattern as just 40 percent of second-time CPO buyers end up purchasing a new car from the same marque.

Moreover, CPO ownership might have an even bigger loyalty draw on the highly coveted Millennial demographic. According to the study, 54 percent of Millennials are likely to stay within the same brand when purchasing a new car or truck.

“Over the next few years, more than nine million certifiable vehicles will be hitting the market, making now the time for consumers, manufacturers and dealers to pay close attention to the CPO landscape,” said Rick Wainschel, vice president of customer insights at AutoTrader.com. “The insights from this study clearly show that consumers are more open than ever to CPO vehicles, and if dealers and manufacturers can turn shoppers into owners, they are well-positioned to build long-lasting relationships with those consumers.”

Certified Pre-Owned programs are becoming increasingly popular with automakers, with the likes of Bugatti, McLaren and even Tesla getting involved in the certification of used vehicles.