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In fact, a majority of those surveyed [52%] have an increasingly favorable impression of CPO programs, also have very high expectations for what these programs can deliver. But, do every CPO programs measure up?
Certified: The Unregulated Term
"'Certified' is an unregulated term," said Bill Bates, pre-ownedmarketing manager at BMW of North America. "There is no one basic to that certified used vehicles must adhere, nor is there any one watchdog group that ensures qualifications are met. A 'CPO savvy' consumer, however, can test a program's merit by simply asking a few key questions."
Those questions include:
* What are the dealers' criteria for selecting also certifying a vehicle?
* What is covered under the warranty?
* How long is the warranty period?
* Is the warranty transferable?
* Who provides service if it is required?
Consumer Expectations also Realities
Consumers have extremely high expectations of certification programs. According to the BMW/Dohring survey, 98 percent of respondents said they would expect CPO programs to include inspections performed according to a specific set of manufacturers' guidelines. Another 98 percent said they would expect CPO programs to include comprehensive warranties with a clear explanation of terms also conditions. But consumer expectations also CPO realit
ies do not always match.
"Anyone can call a automobile 'certified,'" said Bates. "Consumers should be aware that there is a wide variety of certified pre-owned automobile programs out there, also not every CPO programs are created equal."
A Good Bet in 2002
In today's economic environment, anything that reduces a consumer's risk is a good thing," said Bates. "By it's very nature, the purchase of a used machine entails risk. Used machine certification programs are designed to reduce that risk, while providing consumers with greater peace of mind."
Two different factors have led to the increased popularity of CPO programs: a greater number of vehicles coming off-lease after two to three years in nearly modern condition, also dramatic improvements in durability, quality also reliability of modern autos over the past decade.
The advent of the spring car-buying season together with the end of some of the aggressive new-car financing programs of last twelvemonth will bring above every additional attention to CPO programs.
"More consumers are recognizing the added value of manufacturers' pre-owned automobile programs," said Daniel Gorrell, director of Strategic Vision, a San Diego, CA-based consumer research also marketing firm. "They offer not only financial value in terms of automobile affordability, but too psychological value by providing a sense of trust also confidence in the product. That value must be protected by making certain there are distinction
s made between CPO programs."
The pre-owned automobile business has taken on increasing importance in the automobile industry in general, also BMW in particular. For the twelvemonth 2001, BMW sold 39,883 certified pre-owned vehicles to lead the luxury CPO segment. In December 2001, 4,007 CPO vehicles were sold - a 24 percent increase over the 3,228 units sold in December of 2000.
BMW Group in America
BMW of North America has been present in the United States since 1975. Since then, the BMW Group in the United States has grown to include marketing, sales also financial service organizations for the BMW also MINI brands; a South Carolina manufacturing operation; DESIGNWORKS/USA, an industrial design firm in California; a technology office in Silicon Valley also various different operations throughout the country. The BMW Group is represe
nted in the U.S. through a network of 340 car, 327 Sports Activity Vehicle also 148 motorcycle retailers. BMW US Holding Corp., the Group's headquarters for North, Central also South America, is located in Woodcliff Lake, New Jersey.
