Everyone that has their own money or income tied to a new car franchise is looking to pre-owned and fixed operations to make a living; except maybe Honda. The loss of leasing, at least in the domestics, has complicated the new car advantage vs. pre-owned even farther with C.P.O.V. providing a compromise to new vehicle buyers..
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has had an excellent R.O.I. for our dealer clients by helping them focus on C.P.O.V. vehicles as an alternate to new and conventional pre-owned but I am often challenged by used car managers who don't have the same confidence. I usually come back with O.E.M. reports and various "think tanks" and industry studies that document the increasing percentage of C.P.O.V. vehicles in total pre-owned sales with a faster turn, increased front end profit, increased internal income to fixed operations and improved customer loyalty in service after the sale.
Recent O.E.M. captive lender support in finance terms and rates have improved the C.P.O.V. payments and extended them to credit challenged customers - not special finance, just marginal credit. All of this coupled with actual sales history in stores that integrate an inventory control system, like AAX, has also supported the value of C.P.O.V. based on historical sales within the dealers that buy and manage their inventories scientifically; as we all should by the way!!!.
Regardless of the above, I am still being questioned by used car managers that think that they are overpriced or cause reverse conversions to new; although I find the opposite since more new car customers are switched to C.P.O.V. than the other way around.
If I am missing something - and the used car managers are right - please tell me what? If you agree that C.P.O.V. are a valued addition to the used car inventory - please help me to explain it to the non-believers.
I am hosting a seminar at the 5th Digital Dealer Conference titled Marketing CPOVs vs. new or pre-owned in credit-challenged industry ...
and I would appreciate any information or personal experience that you can provide to share with my audience.
After all, what are friends for!