Revamped Ford Certified Pre-Owned Vehicle Program Yields 29 Percent Growth; Improves Residuals, Dealer Profits
- Ford Motor Company is on pace to realize a 29 percent growth in Certified Pre-Owned (CPO) vehicle sales this year versus 2011
- Revamped Ford and Lincoln CPO programs launched in February 2012 offer increased warranty coverage duration, more inspection points and enhanced Roadside Service
- Robust CPO programs can help improve residual values, enhance dealer profitability, bring more new customers to Ford and Lincoln dealerships and may ultimately result in lower ownership costs for customers
DEARBORN, Mich., Aug. 13, 2012 – Ford Motor Company is on track to realize a 29 percent growth in Certified Pre-Owned (CPO) vehicle sales this year versus 2011.
The rise in sales comes on the heels of a major revamp of the CPO program, and according to John Felice, general manager, Ford and Lincoln Sales, it represents a win-win-win for Ford Motor Company, its dealers and, most importantly, its customers.
“A robust CPO program keeps more vehicles in the dealer network. It improves residual values, enhances dealer profitability, brings more customers to Ford and Lincoln lots, and ultimately results in lower vehicle costs for consumers,” Felice says. “As sales of our new products continue to grow, so will the demand for high-quality, low-mileage pre-owned Ford and Lincoln vehicles. That’s why we work very closely with our dealers to invest in our CPO program and make it even more competitive.”
Customers who buy CPO Ford Motor Company vehicles now receive a 12-month/12,000-mile comprehensive limited warranty coverage, compared to the three-month/3,000-mile warranty coverage previously offered. And the powertrain warranty has been improved from a six-year/100,000-mile to a seven-year/100,000-mile limited warranty coverage. Customers receive seven years of Roadside Assistance and free Sirius Radio for three months on equipped vehicles.
Lincoln CPO customers now receive a six-year/100,000-mile comprehensive limited warranty coverage. They also receive six years of Roadside Assistance and free Sirius Radio for three months on equipped vehicles.
And the multiple-point inspection process on both Ford and Lincoln CPOs now covers new technology such as MyFord Touch® and MyLincoln Touch™, adaptive cruise control and Blind Spot Information System (BLIS®) with cross-traffic alert.
Marc Cross, owner of Jordan Ford in San Antonio, Texas, is one of the top 25 Ford CPO volume dealers in the country. His dealership just set an all-time CPO record in July for selling 94 vehicles in one month.
“When most people buy a used car, their biggest fear is what’s going to happen later,” Cross says. “The new enhanced warranty helps alleviate some of that apprehension.”
Larry Taylor, owner of Beau Townsend Ford Lincoln in Vandalia, Ohio – also a top 25 Ford CPO volume dealer in the country – says his CPO sales margins are up since the program was relaunched in February.
“Our gross profits are definitely higher this year because of the enhanced programs,” Taylor says. “It gives us more to talk about than just price. And it gives people confidence to buy, because for them it’s like buying a new car at a reduced price.”
According to Todd Fites, national CPO sales manager, Ford Lincoln CPO programs enable customers to get a like-new car with new-car peace of mind, and many are able to enter a vehicle segment – whether it be luxury, SUV, etc. – they couldn’t otherwise afford.
“Fifty-five percent of these customers are new to the Ford and Lincoln brands, and research shows that a new CPO customer is twice as likely to come back and buy a new Ford product in the future,” Fites says.