Report: Certified Used Vehicles Account for More Than One-Third of All Late-Model Used-Vehicle Sales
WESTLAKE VILLAGE, Calif.--Nov. 19, 2002--Sales of certified used vehicles have increased 46 percent since 2000, with certified used vehicles comprising an estimated 35 percent of late-model used vehicles sold in 2002(a), according to the J.D. Power and Associates 2002 Used-Vehicle Sales and Certification Study(SM) released today.
The inaugural study measures the satisfaction and experiences of owners of certified used vehicles. "Certified" refers to late-model used vehicles that have typically undergone a detailed inspection at the dealership and are sold with manufacturer-backed warranty coverage.
"Certification programs are changing the face of the late-model used-vehicle market," said Scott Weitzman, senior director of retail programs at J.D. Power and Associates. "While the traditional used-vehicle sale is motivated primarily by price, certification programs increase consumer confidence about the quality of the used vehicle, backed by a strong warranty."
While 53 percent of all used-vehicle buyers are aware of certification programs before they start shopping, less than one-quarter of buyers who purchased a certified used vehicle initially set out to do so. However, awareness of certification programs continues to increase, and the programs are attracting a significant number of vehicle shoppers who originally consider only a new vehicle. Nearly one-half of all buyers of certified used vehicles state they would not have purchased a used vehicle had it not been for the availability of the certification program.
The value-added benefits of certified used vehicles have been particularly attractive to luxury buyers, who purchase certified used vehicles at a higher rate than do non-luxury buyers.
"In many cases, certified used-vehicle programs are giving new-vehicle buyers access to a higher class of vehicle than they may have originally considered along with added perks like free maintenance and roadside assistance -- features that the traditional used-vehicle sale never provided before," said Weitzman.
Lexus ranks highest in satisfying certified used-vehicle owners, receiving top ratings in each of the factors contributing to overall satisfaction with certified used-vehicle programs: program features, vehicle quality, shopping experience and vehicle price. Lexus is followed in the rankings by Jaguar, BMW and Mercedes-Benz, respectively.
The 2002 Used-Vehicle Sales and Certification Study measures the experiences of more than 11,000 used-vehicle buyers.
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. Media e-mail contact: michael.greywitt@jdpa.com or john.tews@jdpa.com.
No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpa.com
(a) The 46 percent is based on J.D. Power and Associates used-vehicle syndicated research. Sales estimates are based on a representative national sample of late-model used-vehicle buyers.