J.D. Power: Used Vehicle Certification Programs Still Popular

WESTLAKE VILLAGE, Calif. – Competition from aggressive new vehicle incentives such as 0% financing and rebates hasn’t dampened the popularity of the sales and awareness among consumers of certified pre-owned vehicles. If anything, says J.D. Power and Associates, their popularity is still increasing. J.D. Power and Associates’ “2003 Used Vehicle Sales and Certification Study” which measures the satisfaction and experiences of owners of late-model used vehicles that have undergone a dealership certification process, shows that the percentage of used-vehicle buyers who purchased a certified pre-owned vehicle has increased to 38% – up 3% from 2002. In addition, consumer awareness of CPO programs also continues to increase. Fifty-seven percent of all used-vehicle buyers are now familiar with the programs before they begin shopping for a vehicle – up from 54% in 2002. The study found that CPO buyers are more satisfied with their vehicles and the dealership sales experience than are non-certified buyers. Consequently, 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. Non-luxury buyers paid $1,000 more. The “2003 Used Vehicle Sales and Certification Study” is based on interviews with almost 16,000 used-vehicle owners who purchased their vehicles in late 2002. Among the program features that were rated by the respondents were bumper-to-bumper warranties, mechanical inspections, service plans, and roadside assistance.