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.Â
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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.
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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.  Â
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.Â
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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.Â
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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.Â
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Targeted educational marketing:Â 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.Â
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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.Â
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Building resilience:Â 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.Â
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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. Â
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