AS Duffy Revision Notes “The Woman who shopped” Carol Ann Duffy.
CPO: The “New” Used2015/12/17 · 32 Few Considered OTHER CPO Programs of Owners actively...
Transcript of CPO: The “New” Used2015/12/17 · 32 Few Considered OTHER CPO Programs of Owners actively...
CPO: The “New” Used
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Source: Manheim Consulting.
Off-lease inventory is GROWING
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CPO Sales to Reach ALL TIME HIGH
® 2014 Cox Automotive Proprietary &
Confidential. For internal use only.
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Source: Automotive News & AutoData
CPO Sales
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Toyota
14%
Source: Automotive News Data Center (Share of U.S. CPO sales & CPO Sales Growth Sept 2014 vs. Sept 2015)
13% 11% 9% 7% 4% 4% 3% 3% 3%
Chevrolet Ford
Mercury Honda Nissan Hyundai Volkswagen
Dodge
Ram Kia Jeep
4% 17% 10% -2% 23% 1% 2% 30% 36% 28%
YOY Growth YOY Growth YOY Growth YOY Growth YOY Growth YOY Growth YOY Growth YOY Growth YOY Growth YOY Growth
TOP 10 – Non-Luxury CPO Sales Distribution & Growth
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BMW
5% 5% 3% 2% 1% 1% 1%
Mercedes
Benz Lexus Audi Infiniti Cadillac Porsche
15% 2% 11% 6% 27% 25% 23%
YOY Growth YOY Growth YOY Growth YOY Growth YOY Growth YOY Growth YOY Growth
Source: Automotive News Data Center (Share of U.S. CPO sales & CPO Sales Growth Sept 2014 vs. Sept 2015)
Luxury CPO Sales Distribution & Growth
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PURPOSE:
To trend shopper familiarity,
opinion, and consideration
of CPO vehicles.
About The CPO Shopper Study
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METHODOLOGY
Autotrader conducted a quantitative
online survey in August 2015.
A total of 445 interviews were
completed, split evenly among new,
used and CPO considerers.
To qualify, respondents must have
been planning to purchase a vehicle
in the next 6 months.
About The CPO Shopper Study
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Will Demand
for CPO
KEEP UP ? 8
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Continued GROWTH in the Forecast
® 2014 Cox Automotive Proprietary &
Confidential. For internal use only.
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Source: Manheim Consulting.
CPO Sales
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69% 71%
64% 63%
75% 77%
45% 47%
41% 40%
45% 49%
2010 2011 2012 2013 2014 2015
The Potential Could Be HIGHER
Higher / Lower than Previous Year. Letter indicates a significantly higher rating than subgroup at the 95% confidence interval.
A1. On a scale from 5 to 1, where 5 is Very Familiar and 1 is Not At All Familiar, how familiar are you with the concept of Certified Pre-Owned (CPO) vehicles?
Less than half of
USED car shoppers
are familiar with
CPO vehicles.
% Familiar With CPO
NEW Shoppers
USED Shoppers
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Lack Of CPO ADVERTISING
A2. Where did you first learn about Certified Pre-Owned (CPO) vehicles?
32%
20% 19%
14%
6% 4%
29%
23% 20%
23%
2% 0%
Television Internet Friend or Family Dealership Newspaper Radio
Source Of Initial CPO Awareness For USED Shoppers Flat
2014 2015
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New Shoppers: n=150
Used Shoppers: n=144
CPO Shoppers: n=151
DEALERSHIP MANUFACTURER
63% 43%
51% 25%
55% 40%
Still Less Aware of OEM’s Role In CPO
Who Certifies the Vehicle?
A7. Which party or parties certify a Certified Pre-Owned (CPO) vehicle?
74% in 2014
66% in 2014
65% in 2014
50% in 2014
30% in 2014
40% in 2014
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® 2014 Cox Automotive Proprietary &
Confidential. For internal use only.
CPO Perceptions
ARE ON THE RISE 13
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Shoppers More POSITIVE About CPO
89% in 2015
88% in 2014
NEW Shoppers
82% in 2015
73% in 2014
USED Shoppers
Higher / Lower than Previous Year. Letter indicates a significantly higher rating than subgroup at the 95% confidence interval.
A4. How would you rate your overall opinion of Certified Pre-Owned (CPO) vehicles?
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CPO CONSIDERATION Is Growing
70% in 2015
59% in 2014
NEW Shoppers
68% in 2015
50% in 2014
USED Shoppers
Higher / Lower than Previous Year. Letter indicates a significantly higher rating than subgroup at the 95% confidence interval.
S2. Thinking about your next vehicle, how likely are you to consider a CPO vehicle?
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S10. What is your likelihood, under the right conditions, you could be moved into a Certified Pre-Owned (CPO) vehicle?
of USED shoppers are
open to
‘MOVING UP’
to a CPO vehicle
82%
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ECONOMY Contributing To CPO Consideration
79% in 2015
73% in 2014
NEW Shoppers
59% in 2015
43% in 2014
USED Shoppers
Higher / Lower than Previous Year. Letter indicates a significantly higher rating than subgroup at the 95% confidence interval.
E2. Using the scale below, please rate the impact of the economy on your likelihood to purchase a CPO vehicle?
% More Likely To Consider CPO Due To The Economy
81% in 2015
73% in 2014
CPO Shoppers
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Education Needed To
DRIVE GROWTH 18
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NEW Shoppers Likelihood to Consider CPO
Likely (4-5)
USED Shoppers Likelihood to Consider CPO
Likely (4-5)
Not Exposed to CPO
Definition
(n=150)
Not Exposed to CPO
Definition
(n=144)
Exposed to CPO
Definition
(n=144)
Exposed to CPO
Definition
(n=150)
S2B. Thinking about your next vehicle, how likely are you to consider…?
C1. Now that you have seen the definition of CPO vehicles, how likely would you be to consider a CPO vehicle for your next vehicle purchase?
70% 87%
68% 83%
Exposing
shoppers to the
definition
SIGNIFICANTLY
increases their
likelihood to
consider CPO
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Have passed a detailed
inspection
NEW Shoppers
51%
INSPECTION and WARRANTY Most Important MOST Important CPO Program Features
Important (1-2)
R4. Please rank the following CPO program features from 1 to 5, where 1 is ‘Most Important’ and 5 is ‘Least Important’.
Come with a warranty
Have lower mileage than typical
used vehicles
Are in better condition than typical
used vehicles
Are usually newer models
50%
35%
32%
32%
USED Shoppers
52%
56%
36%
38%
18%
CPO Shoppers
48%
54%
34%
42%
23%
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CPO Vehicles Provide PEACE OF MIND
R1. Why would you consider purchasing a Certified Pre-Owned (CPO) vehicle?
The Certification Inspection Process and Warranty Gives Me
Peace of Mind
63%
NEW Shoppers
64%
63%
CPO Shoppers
USED Shoppers
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Shoppers Willing To Pay For PEACE OF MIND
65%
USED Shoppers
C3. Also, now that you have seen the definition of Certified Pre-Owned (CPO) vehicles, would you be willing to pay more for a CPO vehicle compared to a used, non-
certified vehicle?
78%
CPO Shoppers
% Willing To Pay More For A CPO Vehicle
81%
NEW Shoppers
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P2a. How much extra would you be willing to pay for a Certified Pre-Owned (CPO) ?
Shoppers Prepared To Pay Roughly
$2,000 More For CPO
$2,737
NEW Shoppers
$2,770
USED Shoppers
$2,806
CPO Shoppers
$2,174 $2,006 $1,930
LUXURY VEHICLE
NON-LUXURY VEHICLE
(n=63) (n=72) (n=77)
(n=56) (n=63) (n=63)
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What Can We Learn From CPO OWNERS?
1,358 Completed Surveys with CPO Owners
388 Male; 967 Female
Objectives were to understand:
Familiarity with CPO Program Prior to Purchase
Satisfaction with CPO Ownership Experience
Likelihood to Repurchase Brand (CPO and New)
Loyalty to Dealership
Online Survey Fielded In August 2015
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Education Needed…
Even For OWNERS
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CPO Owners Who Needed to
Learn More at the Start of the
Shopping Process*
82% 82% in 2014
*Somewhat Familiar/Not at all Familiar **Not at all Familiar
Q16. How familiar were you with Certified Pre-Owned (CPO) programs prior to purchasing/leasing your vehicle ?
Knew Nothing About CPO
Program at the Beginning**
29% 27% in 2014
Knowledge About CPO Remains SLIGHT
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n=176 n=175 n=175 n=175 n=180
82% 87% 86% 87% 88% 88%
n=150
CPO Owners Who Were Not Very Familiar with CPO at the
Start of the Shopping Process*
Owners Need More INFORMATION
*Somewhat Familiar/Not at all Familiar
Q16. How familiar were you with Certified Pre-Owned (CPO) programs prior to purchasing/leasing your vehicle ?
82% in 2014 88% in 2014 86% in 2014 85% in 2014 84% in 2014
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CPO Owners Who ONLY
Considered CPO
19% 40%
CPO Owners Who
Considered NEW
50% in 2014
59%
CPO Owners Who
Considered USED
64% in 2014
CPO COMPETES With New And Used
15% in 2014
Higher / Lower than Previous Year. Letter indicates a significantly higher rating than subgroup at the 95% confidence interval.
Q18. What other types of vehicles did you consider before purchasing/leasing your CPO vehicle?
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40% 40% 41% 41% 44%
47%
61% 63%
58% 58%
63% 61%
18% 15%
21% 18%
13% 9%
n=176 n=175 n=175 n=175 n=180 n=150
Only CPO Used Non-Certified Vehicles New Vehicles
Q18. What other types of vehicles did you consider before purchasing/leasing your CPO vehicle?
Most Owners Considered ALTERNATIVES
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Few Considered OTHER CPO Programs
of Owners actively
shopped across
CPO Programs
40% 40% in 2014
Q25. When shopping for your vehicle, did you consider Certified Pre-Owned (CPO) vehicles from other automotive manufacturers?
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n=176 n=175 n=175 n=175 n=180
36% 41% 43% 37% 39% 44%
n=150
CPO Cross-Program Consideration Is Consistent
Across Brands
35% in 2014 41% in 2014 34% in 2014 38% in 2014 44% in 2014
Q25. When shopping for your vehicle, did you consider Certified Pre-Owned (CPO) vehicles from other automotive manufacturers?
Few Considered OTHER CPO Programs
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CPO Benefits Are TANGIBLE and INTANGIBLE
Warranty 62%
Vehicle History
Report 58%
Multi-Point
Inspection 51%
Service Plan/Free
Maintenance 33%
Good Vehicle
Condition 85%
Good Value
Low Vehicle
Mileage 69%
75%
Q9. Please share any elements of the Certified Pre-Owned (CPO) process you recall that impacted your decision to purchase/lease a CPO?
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88% 88% 86% 85% 87%
73% 78%
74% 77%
74% 73%
64%
72%
63%
78%
68% 72%
66%
n=176 n=175 n=175 n=175 n=180 n=150
Low Vehicle Mileage Good Value Good Vehicle Condition
Vehicle Condition Key CPO Component
Q9. Please share any elements of the Certified Pre-Owned (CPO) process you recall that impacted your decision to purchase/lease a CPO?
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67%
60% 62% 62% 59%
68%
56% 54%
65%
58% 60%
41%
56%
49% 54%
50% 51% 47%
n=176 n=175 n=175 n=175 n=180 n=150
Multi-Point Inspection Vehicle History Report Warranty
WARRANTY Most Important For CPO
Purchase Consideration
Q9. Please share any elements of the Certified Pre-Owned (CPO) process you recall that impacted your decision to purchase/lease a CPO?
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Q25b. What made you pick your CPO vehicle over other CPO vehicles?
Better Price/Deal Offered 64%
Vehicle Fit My Needs Better
Choosing Between Two CPO Programs
Liked The Brand (Manufacturer)
Better Vehicle Features Offered
Just Wanted That Particular Vehicle
Better Dealership Experience
Vehicle Had Better Reviews
CPO Program Benefits Were Better
49%
39%
31%
29%
26%
26%
18%
TOTAL
N=549
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CPO Vehicles
Generally Live Up To
EXPECTATIONS
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3-in-4 Owners Are Very
Satisfied With Their CPO
Experiences
76% 75% in 2014
Q5. How would you rate your overall satisfaction with your Certified Pre-Owned (CPO) vehicle?
Q15. Have you had any issues with your vehicle since you purchased/leased it?
Experienced Issues Or
Problems With Their Vehicles
23% 28% in 2014
CPO Vehicles Live Up To EXPECTATIONS
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n=175 n=180 n=176 n=175 n=175
85% 79% 78% 76% 72% 71%
n=150
Three-of-Four Owners Are Satisfied With Their
Experiences
79% in 2014 76% in 2014 73% in 2014 83% in 2014 75% in 2014
CPO Vehicles Live Up To EXPECTATIONS
Q5. How would you rate your overall satisfaction with your Certified Pre-Owned (CPO) vehicle?
% VERY SATISFIED
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Q6. Please tell us why you are satisfied with your CPO vehicle? (n=1,329)
Reliable/Dependable/No Problems 28%
Runs Well/Good Performance
RELIABILITY Key Driver Of CPO Satisfaction
Good Condition/Well Maintained
Good Car/Good Quality
Satisfied/Like It/Nice Car
16%
15%
12%
12%
2015 TOTAL
2014 TOTAL
25%
15%
19%
14%
11%
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Q11. How satisfied are you with each of the following benefits that are provided with your Certified Pre-Owned (CPO) vehicle? [‘Does not apply to my CPO vehicle’ was
removed from base here.]
CPO BENEFIT Satisfaction
Vehicle History Report 87%
Comprehensive Limited Warranty
Manufacturer Powertrain Warranty Extension
Emergency Roadside Assistance
Transferable Warranty
Towing Coverage
Rental Car Assistance
Buy Back Guarantee
78%
77%
74%
70%
70%
66%
61%
% TOP 2 BOX (SATISFIED)
Trip Interruption Benefits 58%
n=1,358
Satisfaction is high
among the various
elements a CPO
vehicle offers with
Vehicle History
Report holding the
top spot.
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Switching A Customer
From CPO TO NEW Is
The Goal
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Q27. How likely are you to purchase another vehicle?
Q31. If the dealership from which you purchased/leased your next vehicle has your next vehicle available, how likely are you to purchase from that dealership again?
CPO Is A GATEWAY To The Brand
Likely To Return To Brand
74% 77% in 2014
Likely To Return To Dealer
80% 85% in 2014
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Q27. How likely are you to purchase another vehicle?
Likely To RETURN To Brand
n=180 n=175 n=175 n=175 n=180
84% 73% 78% 87% 76% 66%
n=150
Most CPO Owners Are Likely To Purchase A Vehicle From
The Same Brand As Their Current CPO Vehicle
80% in 2014 84% in 2014 83% in 2014 83% in 2014 72% in 2014
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015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
48
Q29. If you were to purchase another vehicle, how likely are you to purchase a NEW vehicle?
CPO Is A Gateway To NEW
45% 49% in 2014
Just under HALF of
CPO Owners are
likely to buy a NEW
vehicle from the
same brand.
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
49
Q29. If you were to purchase another vehicle, how likely are you to purchase a NEW vehicle?
49% 46% 46% 44% 43% 49%
Likelihood To Buy New Vehicle From Same Brand
44% in 2014 49% in 2014 53% in 2014 48% in 2014 51% in 2014
CPO Is A Gateway To NEW
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
FIRST TIME CPO Owners Are
More Likely To Switch To
NEW Of The Same Brand;
REPEAT Owners Become
More LOYAL To CPO And
Entrenched.
Q29. If you were to purchase another vehicle, how likely are you to purchase a NEW vehicle?
48%
FIRST TIME CPO Owners
38%
REPEAT CPO Owners
50
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
MILLENNIALS
are a key target
audience for CPO
51
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
CPO Consideration is HIGHER AMONG MILLENNIALS
%
Millennials 77 %
Non-Millennials
61
S2: Thinking about your next vehicle, how likely are you to consider a Certified Pre-Owned (CPO) vehicle?
52
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
MILLENNIALS ARE MORE OPEN
to Moving up to CPO %
Millennials
90 %
Non-millennials
76
S10: What is your likelihood, under the right conditions, you could be moved into a Certified Pre-Owned (CPO) vehicle?
53
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
HIGHER WILLINGNESS
to Pay for CPO
%
Millennials 73 %
Non-Millennials 59
C3. Now that you have seen the definition of CPO, would you be willing to pay more for a CPO vehicle compared to a used, non- certified vehicle?
54
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
Headroom for GROWTH
ONLY
% Millennials
Used Shoppers 53 Familiar with CPO
55
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
CPO Consideration
increases SIGNIFICANTLY
once shoppers
understand it 77%
90%
AFTER exposure to CPO
definition
BEFORE exposure to CPO
definition
C1: Now that you have seen the definition of a CPO vehicles, how likely would you be to consider a CPO vehicle for
your next vehicle purchase?
56
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
What They Value MOST
Comes with a Warranty 33%
24%
16%
14%
13%
37%
14%
30%
14%
5%
MILLENNIALS NON-MILLENNIALS
Usually Newer Models
Are in Better Condition
Passed Detailed Inspection
Have Lower Mileage
R4. Please rank the following CPO program features from 1 to 5, where 1 is ‘Most Important’ and 5 is ‘Least Important’.
57
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
MILLENNIALS ARE
“BRAND HOPPERS”
%
Millennials
48 %
Non-Millennials
34
Q25. When shopping for your vehicle, did you consider Certified Pre-Owned (CPO) vehicles from other automotive manufacturers?
58
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
ONCE they become
CPO OWNERS,…
…77% are likely
to buy the same MAKE Q27. How likely are you to purchase another vehicle?
59
2015 C
PO
Researc
h S
tudy
® 2
015 C
ox A
uto
motive P
roprie
tary
& C
onfid
entia
l. F
or
inte
rnal use o
nly
.
AND… 52% are likely to
MOVE UP to a NEW car
Q29. If you were to purchase another vehicle, how likely are you to purchase a NEW vehicle?
60