Ford Motor Company is experiencing record levels of sales of used vehicles also known in industry marketing jargon as ‘Certified Pre-Owned.’ Through August, the company recorded 228,000 Ford, Lincoln, Mercury certified vehicle sales, for a 39% growth rate compared to 2012.
In general, automakers are setting record sales of used vehicles through their dealers as the U.S. economy slowly recovers – more than 80% of workers commute to work in vehicles – and interest rates remain at absurdly low rates as taxpayers continue to subsidize the bankers and Wall Street firms that caused the Great Recession. Record high new vehicle prices – more than $30,000 on average for a car, +$40,000 for a truck – are also forcing some buyers into used vehicles.
“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.
Based on a new CPO warranty the company introduced in February 2012, customers who buy Ford CPO vehicles receive 12-month/12,000-mile comprehensive limited warranty coverage, with a seven-year/100,000-mile limited powertrain warranty. Customers also receive seven years of Roadside Assistance and free Sirius Radio for three months on vehicles equipped for the service. In 2013, the programs changed to begin at the end of new Ford and Lincoln vehicle warranties.
Lincoln CPO customers receive six-year/100,000-mile limited warranty coverage. They also receive six years of Roadside Assistance and free Sirius Radio for three months on equipped vehicles.
The multiple-point inspection process on both Ford and Lincoln Certified Pre-Owned vehicles covers new technology such as MyFord Touch and MyLincoln Touch, adaptive cruise control and Blind Spot Information System with cross-traffic alert.
Top five Ford CPO volume vehicles – calendar year to date, August
Top five Lincoln CPO volume vehicles