New research conducted by the carsales voice of customer team has unveiled compelling insights into the Australian Certified Pre-Owned (CPO) vehicle market. The findings highlight a significant opportunity for automotive brands and dealers to capitalise on what is a largely dormant segment.
Our study reveals a strong, untapped potential for CPO programs directly linked to consumer awareness and understanding. While overall consideration of CPO stands at 29%, awareness significantly impacts intent, with figures skyrocketing to 65% among those familiar with the concept. It’s clear that OEMs hold a unique opportunity to convert a substantial and informed customer base by strategically targeting those who lack comprehensive knowledge of CPO programs.
The role of online marketplaces like carsales is pivotal in the CPO journey. Our survey reveals that 24% of respondents first learned about CPO vehicles through this channel, indicating its potent influence on consumer awareness. Furthermore, 46% utilised these platforms for their CPO research, making carsales a go-to source of information for potential buyers.
This highlights the value of a robust online CPO presence on carsales, not only for dealerships but for OEMs seeking to maximize visibility and nurture consumer interest through targeted media initiatives.
Our data reveals extraordinary loyalty amongst CPO customers, with 84% likely to return to the same brand for their future vehicle needs. This emphasizes the role of CPO as a strategic tool for dealers and OEMs, not only in customer acquisition but more importantly, in fostering the long-term, high-value customer relationships that are vital for brand success.
Additionally, new car stock shortages could be strategically addressed through CPO programs. OEMs can position CPO vehicles as a compelling alternative for customers who value a like-new experience, allowing dealers and OEMs to remain competitive, satisfy demand, and maintain brand engagement during challenging supply landscapes.
Targeted educational marketing: OEMs can dispel misconceptions and bridge the knowledge gap about CPO programs with laser-focused media campaigns. By highlighting the quality assurances, warranties, and peace of mind that CPO vehicles offer, OEMs can significantly enhance the appeal of these programs, attracting a wider audience.
Customer acquisition and retention: CPO programs serve as a powerful gateway to customer acquisition, allowing dealers and OEMs to introduce their brand to a new audience that values reliability and peace of mind. The inherent loyalty that CPO programs foster translates into invaluable repeat business, helping OEMs nurture a strong, long-term customer base.
Building resilience: CPO programs help dealers and OEMs navigate market challenges like new car stock shortages. By promoting CPO vehicles as a readily available alternative, OEMs can mitigate the impact of supply chain disruptions and maintain market presence.
By investing in consumer education, clarifying the benefits of CPO, and ensuring a robust digital presence, brands and dealerships stand to win new customers. Additionally, CPO programs can solidify brand loyalty, leading to repeat business and a stronger customer base.
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