Page 13 - GIADA-April2017

MARKETING

leased before, make sure they know it’s of mind is a major CPO selling point:
And what kind of vehicles do luxury con- an option that can get them into a high- 64 percent of consumers who purchased
sumers want to lease? Sedans. The ones er-end vehicle faster and at reasonable CPO said certification played a major
dealers are having a hard time selling. monthly payments. role in their decision.
Luxury sedans make up 56 percent of the
lease share of new-vehicle volume, while Upgrade used sedans to Certifying used luxury sedans does come
luxury SUVs total only 33 percent. By Certified Pre-Owned. with an upfront cost. But this small in-
targeting potential lessees and promoting Leasing is all well and good for vestment can result in a major payoff. It’s
sedan inventory, dealers can start those 3new vehicles. But what about used a simple way to make used vehicles feel
slow-moving cars rolling off the lot. ones on the lot. Used luxury sedans can like new. That’s an upgrade consumers
be a major opportunity for dealerships will pay more for. Used-vehicle shoppers
Comb through the customer-relation- that take full advantage of certified pre- are willing to pay more for a CPO vehicle
ship-management system for consumers owned options. than for the same vehicle without certi-
who could be interested in a new lease. fication. Even better, 74 percent of CPO
Consumers near the end of current lease Driving a luxury vehicle is a goal for buyers will purchase their next vehicle
terms are an especially good fit, because countless consumers, but the cost of buy- from the same brand. CPO does more
dealers know exactly when they’ll need ing or even leasing a new one can shut than move sedans off lots. It can win cus-
their next vehicle. And because returning many people out. Certified Pre-Owned tomers for life.
lessees are more likely to upgrade than creates a best-of-both-worlds solution
new buyers are, coordinate upgrade-fo- for these consumers. They can get their Yes, shifting consumer preferences can
cused offers with lease renewal dates. Ed- dream car for a lower price, while the leave dealers with misaligned inventory.
ucating consumers about the benefits of vehicle’s certification removes potential But that doesn’t have to be a disaster. The
leasing can convince even more shoppers quality and safety concerns sometimes right moves can keep dealership invento-
to give it a try. If customers have never associated with buying used. That peace ry moving. All of it. n

GIADA Independent Auto Dealer APRIL 2017 | 11