Used
Vehicle Certification Programs
Increase in Popularity
Lexus
Program Ranks Highest
in Customer Satisfaction
 | 2002
Lexus ES300 |
Sales
and awareness of certified pre-owned vehicles continue to increase, despite competition
from aggressive new-vehicle incentives, according to the J.D. Power and Associates
2003 Used Vehicle Sales and Certification Study released recently. The study,
which measures the satisfaction and experiences of owners of late-model used vehicles
that have undergone a dealership certification process, finds that sales of certified
pre-owned (CPO) vehicles has increased to 38 percent — up 3 percent over 2002.
Consumer awareness of CPO programs also continues to increase. Fifty-seven percent
of all used-vehicle buyers are now familiar with the programs before beginning
the shopping process-up from 54 percent in 2002.
"The
late-model used-vehicle market has been directly affected by the heavy use of
incentives over the past two years as potential buyers are lured by the alternative
of purchasing a new vehicle," said Todd Wilson, director of retail distribution
research at J.D. Power and Associates. "Yet, the market for certified pre-owned
vehicles continues to grow." The
study finds that CPO buyers are more satisfied with their vehicles and the dealership
sales experience than are non-certified buyers. In turn, CPO buyers indicate a
much higher likelihood to return to the selling dealership for repairs, routine
maintenance and future purchases. On
average, luxury buyers paid nearly $3,000 more for their certified used vehicle
than did buyers of non-certified luxury brands, while non-luxury buyers paid $1,000
more. "Without
question, consumers rate the warranties that come with CPO vehicles as the most
valuable feature of the programs, and they're willing to pay more for the added
peace of mind," Wilson said.
For
the second year in a row, the Lexus certified pre-owned program ranks highest
in customer satisfaction by a substantial margin. Lexus tops the industry in areas
such as shopping experience and vehicle quality, as well as program features accompanying
certification. The
2003 Used Vehicle Sales and Certification Study measures the experiences of almost
16,000 used-vehicle owners who purchased their vehicles in late 2002. Bumper-to-bumper
warranties, mechanical inspections, service plans and roadside assistance are
some of the program features that were rated by consumers.
(Source:
J.D. Power and Associates)
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