A win-win for VW and its dealer network: New carsales data reveals the power of CPO vehicles on carsales in attracting more car buyer attention
Australian car shoppers are enjoying the peace of mind delivered by Certified Pre-Owned (CPO) programs with key metrics of awareness, consideration, and interest for Volkswagen CPO vehicles spiking after the launch of the brand’s collaborative program with carsales.
Between April 1 – May 28, 2021, CPO-branded VW vehicles listed for sale on carsales:
1. Delivered increased detail views
19.8% increase in detail views compared to similar non-CPO VW vehicles¹
2. Created more sales opportunities
14.1% increase in enquiries compared to similar non-CPO VW vehicles¹
3. Boosted the velocity of enquiry
32.9% increase speed to first enquiry compared to similar non-CPO VW vehicles¹
“In the face of curtailed new car supply, the results generated by the VW CPO program with carsales are fantastic for Volkswagen and its dealer network,” says Gemma Pintaudi, Client Service Director at carsales.
“The results validate the power of partnership between OEMs and carsales in increasing awareness, consideration and consumer appreciation of CPO programs,” she added.
VW CPO inventory is clearly marked on carsales via both consumers’ personalised search results and details view pages. A full description of the benefits of the VW CPO program is also called out.
In addition, consumers can even choose to filter their search results to deliver VW CPO-certified inventory only.
The strong results generated by the VW CPO program come off the back of the expansion of carsales’ relationship with Volkswagen Group Australia, to deliver Audi with a CPO program of its own on carsales.
Since late May, Audi dealers have been able to sign up for the new Audi :plus Program. This enables dealers to publish and brand approved Audi CPO inventory via carsales AutoGate platform.
The benefits to consumers of the new Audi :plus Program is also showcased via a new dedicated landing page at https://www.carsales.com.au/new-cars/certified-programs/audi/audi-approved-plus/.
In addition to Audi and Volkswagen, Skoda, BMW, Ferrari, Land Rover, McLaren, Mercedes-Benz, MINI Nissan and Porsche all have highly-visible CPO programs on carsales.
All of the programs have dedicated landing pages and functionality. Further details of the programs can be found at https://www.carsales.com.au/new-cars/certified-programs/.
The increasing popularity of CPO vehicles
In the face of tough trading conditions for automakers and dealers around the world, CPO vehicles have been a shining light.
No more so than in the USA, where CPO sales have been at record levels in terms of volume and margin.
According to Automotive News, in 2020 CPO vehicle sales proved more resilient than brand new vehicles and non-certified used vehicles, as price-sensitive American consumers gravitated to more affordable CPO cars backed by the peace-of-mind of an extended manufacturer warranty.
“While CPO programs are not as ingrained with Australians as they are in the US, as awareness and understanding of these programs improves they are becoming an increasingly enticing prospect for value-driven and risk-adverse car buyers,” says Pintaudi.
“There are big benefit for brands and dealers in promoting these programs to in-market car buyers on carsales. These vehicles are a gateway to building long-term customer relationships across sales, finance and Aftersales.”
In a recent piece for csnbusinessstg.wpengine.com, Behavioural Science expert Dan Monheit pointed to reduced purchase risk, added confidence, and ease of buying as key drivers of CPO programs’ increasing popularity during the COVID-19 pandemic.
“We live in a world where the average adult is required to make thousands of decisions each day,” wrote Monheit for csnbusinessstg.wpengine.com.
“When given the opportunity to defer a little of our brain work to a recognised expert, it can be hard to resist — especially for something as tricky, infrequent, and important as assessing the value of a second-hand vehicle.
“Beyond just being easier, relying on authority can reduce perceived risk, clearing the path to a sale.
“If a product has an accreditation, it means that someone else has gone to great lengths to publicly declare it’s safe, fit for purpose and as described,” Monheit commented.
“This is certainly the case with CPOs, where the OEM providing it is not only well versed in their own vehicles, but also has a reputation to protect at all costs.”
Further reading
Why are CPO vehicle sales going up, up, up?
Source: 1. carsales internal data, April 1 – May 28, 2021
