Like ‘natural’ food labels, has the overuse of ‘certified’ lost its power in the used car market?   Once upon a time, a label of ‘natural’ on food products… or anything else, conjured up images of health and purity and assurances that the product was pesticide and chemical-free – but today, with all things natural in vogue and not a standard or regulation in place, the label has suffered from over-exposure and it has become a far less meaningful brand tool for the food marketing industry. Indeed, not so long ago, the same held true for the organic label, until the USDA stepped in with its seal and relatively strict standards for use of the term ‘organic’.  Should certified be getting the same treatment?  Perhaps. Because today, the same fate is rapidly befalling another over-used term completely lacking in any standardization –the certification label. Everything from security systems to cars can ...

‘As Is’ – two words that can cover a multitude of vehicle sins and serve to instantly put the buyer on the alert. The time has come to send ‘As Is’ to the scrap heap and switch the tone at the used car dealership from ‘Buyer Beware’ to ‘Buyer Be Sure’ so that dealers can sell with more confidence, move vehicles faster – and at greater value – and so that consumers can buy with peace of mind. Not so long ago, ‘As Is’ was just the way it was for the used car dealer and the used car buyer because there was no alternative. Today, two decade’s worth of OEM CPO (Certified Pre-Owned) programs, not to mention 15 years of information empowerment courtesy of the Internet, have made consumers more demanding and less willing to accept anything ‘As Is’. CPO is what consumers expect and demand — and CPO makes it much easier for dealers to sell and get value for the vehicles on their lot...

There is a huge ‘certification’ gap in our industry that represents a potential loss of billions of dollars by used car dealers. Consider: over 35 million used cars were sold last year, but fewer than 2 million of them were certified by OEM-sponsored programs. This is a stunning fact given that consumers are willing to pay, on average, a 12-27% premium on a certified vehicle. Let’s add the numbers up: the average cost of a used vehicle at a franchised dealership is $11,026 and at an independent dealer it is $9,562. So, dealers are potentially missing out on an average of $1,323 – $2,977 and $1,147 – $2,582 per uncertified vehicle respectively. Let’s take the average of the above numbers, $2,007, and begin to comprehend the scope: if just one million more vehicles were sold as certified by dealers, we are looking at additional revenue of $2 billion! Add to that the fact that certified vehicles turn 20 days faster than their uncertified ...