The average price for a new vehicle in March 2024 was $47,218 according to Kelley Blue Book. Combined with high interest rates, that price range is out of reach for many car shoppers, who are instead opting to purchase pre-owned and certified pre-owned (CPO) vehicles.
Because certified vehicles are more expensive than similar, uncertified vehicles, shoppers might initially gravitate towards the less expensive vehicle. For this reason, many dealers don’t want to invest a lot of money in certifying vehicles, so they keep their CPO inventory to a minimum.
However, CPO vehicles can be profitable for dealers when consumers recognize the value in paying more for the warranty and benefits that come with being certified. And consumers feel good about buying them. According to Consumer Reports, vehicles bought as CPO had 15 percent fewer problems than other used cars.
To sell the value of their CPO vehicles, dealers should focus on merchandising and marketing these vehicles differently than their non-certified vehicles. Hands down, videos are the best way to demonstrate the value of these vehicles compared to the value of non-certified vehicles.
Here are a few recommendations for using video to market your CPO program and CPO vehicles.
Inventory Videos
When you create an inventory video for a CPO vehicle, it’s important to mention right off the bat that the vehicle is certified, both in the video description and in the narration. List the reconditioning that was done along with all the benefits that a consumer gets with a certified vehicle. Include graphics and text overlays that reinforce the benefits so a consumer can read what they are hearing for better comprehension.
CPO Program Video
Create a separate video that educates prospects about what a CPO program is. Include information such as how you select vehicles to be certified, the reconditioning that each vehicle goes through, the inspection list, the limited warranty that comes with the vehicle, and other benefits. The more transparent you can be about your CPO vehicles, the more confidence the consumer will feel. Every time you receive an Internet lead for a CPO vehicle, make sure the salesperson sends this informational video to the prospect in their initial response. Additionally, include this video on the same landing pages as your CPO inventory videos.
360-Degree Videos
Special cars warrant special merchandising efforts, and nothing sets apart a vehicle more than a 360-degree, interactive presentation. According to Omnivirt, 360-degree videos have an 85% completion rate versus a 58% completion rate for regular videos.
Interactive video presentations are simple and relatively inexpensive to create, as they can be automatically generated from inventory photos using AI technology.
Live-Streaming Vehicle Walkarounds
When you get an inquiry on a CPO vehicle, set up an appointment for a live-streaming vehicle walkaround. This might require a little extra effort on behalf of your salespeople, but the effort is worth it for your premium CPO vehicles. Train your salespeople to value sell the features and benefits of CPO vehicles, and have them show the consumer the stickers and inspection checklist that show the vehicle is certified.
Once you have your series of CPO videos, use them in multi-channel marketing campaigns to get the most exposure. Post them on your website, and make sure your CPO inventory videos get uploaded to third-party listing sites. Post the videos on all of your social media platforms and use them in email marketing campaigns.
Car shoppers are willing to pay substantially more for certified vehicles, versus non-certified vehicles. Many shoppers actively search for CPO vehicles, so the more you can merchandise and market these vehicles using video, the more active car shoppers you will attract.