Short on New Car Inventory? No OE CPO to Offer? Make Your Own
It’s no secret that the auto industry is being stressed in ways no one could have imagined even a year and a half ago. Before COVID, franchises nationwide were flush with inventory and sales were steady and climbing in some markets. But with the unprecedented chip shortage affecting the manufacturers, this has caused a disruption that some analysts are saying could last into 2022.
With fewer new units, some dealers may be working hard to pivot to late model used or CPO vehicles to fill that sales void and keep profits flowing. Not a bad idea and for many, this will be enough to sustain hard costs and staffing until the supply chain starts to return to normal.
But what if you don’t have a CPO program to lean on? Simple….start your own.
If your front-line is filled with units that are in great shape with clean history and low miles, now could be the time to start your own private label CPO program to help offset new car sales.Here’s why this could be the best time for this…
- CPO vehicles are already appealing to car shoppers due to extended powertrain coverage and a bump-out of bumper-to-bumper protection.
- CPO often includes a bigger checklist of inspected components for extra peace of mind.
- Private-labeling to your dealership brand can help create a tighter relationship between your store and the customer as they will have to come back to YOU for service, etc.
- You can hold a higher price per unit with CPO included and since your used prices are already higher now than this time last year, car shoppers will be better suited to absorb it to get better protections.
- Your store can better compete with established CPO programs in the local market.
TruCPO, powered by TruWarranty, is able to help your dealership construct a CPO program from the ground up. Private labeled to your store and providing local car shoppers with an alternate to the bigger, more expensive CPO programs. It can be customized and with our one-stop administration for warranty claims, your dealership gets the benefit of an easy certification process that your customers will trust.
Certified Pre-Owned is always an attractive way to purchase a car and offers the customer strong protections and in many cases, a better long term ownership experience.
If your dealership has ever considered building out a white labeled CPO program, now may be the right time to consider it.