Through August of 2013, Ford sold 228,000 Ford, Lincoln, and Mercury Certified Pre-Owned (CPO) vehicles, representing a 39 percent growth compared to the same time period in 2012.
According to Ford’s national CPO sales manger Todd Fites, the CPO programs enable customers to have a like-new car with new-car peace of mind, allowing many buyers to purchase a vehicle in a segment (such as luxury, SUV, etc.) that they couldn’t otherwise afford as a new vehicle. What’s more, CPO customers have a high probability of returning to purchase a new Ford vehicle.
“Fifty percent of these customers are new to the Ford and Lincoln brands, and research shows a new CPO customer is twice as likely to come back and buy a new Ford Motor Company product in the future,” Fites says.
How does the customer benefit from buying a CPO vehicle? In a word, warranty: Ford CPO vehicles receive 12-month/12,000-mile comprehensive limited warrant coverage and a 7-year/100,000-mile limited powertrain warranty. In addition, seven years of Roadside Assistance and a complimentary three-month subscription to Sirius Radio is standard on Ford CPO vehicles (when equipped). Ford further enhanced the program for 2013 by beginning CPO coverage at the end of the new Ford vehicle warranty.
Lincoln buyers see even more value by purchasing a CPO vehicle, receiving a 6-year/100,000 mile comprehensive limited warranty, plus six years of Roadside Assistance and free Sirius Radio for three months on equipped vehicles.
All Ford and Lincoln CPO vehicles pass a multiple-point inspection process, with the warranty also covering new technology such as MyFord Touch and MyLincoln Touch, adaptive cruise control and Blind Spot Information System with cross-traffic alert.
Not only does the program help consumers get a quality pre-owned car that carries the manufacturer’s warranty, it is also a boon for Ford as an automaker as well as its dealers.
“A robust CPO program keeps more vehicles in the dealer network,” said John Felice, general manager, Ford and Lincoln sales. “It improves residual values, enhances dealer profitability, brings more customers to Ford and Lincoln dealerships, and may ultimately result in lower vehicle costs for our customers.
Mr. Felice also sees a correlation between growing new Ford and Lincoln vehicle sales and market demand for CPO vehicles.
The top five Ford CPO vehicles, by sales volume are as follows:
The top five Lincoln CPO vehicles, by sales volume are as follows: