Guide to CERTIFIED PRE-OWNED VEHICLE

[Pages:10]? 2007 Crain Communications. All rights reserved.

September 24, 2007

Guide to

CERTIFIED PRE-OWNED VEHICLE

PROGRAMS

Sponsored by

Guide to

CERTIFIED PRE-OWNED VEHICLE PROGRAMS

Contents

Certified pre-owned vehicle checklist and vehicle sales, 7 months 2007 .....................4

Acura, Audi, Bentley, BMW, Cadillac ......................5 Chrysler Motors LLC, Ford division, GM,

Honda Division, Hummer ..................................6 Hyundai, Infiniti, Jaguar, Land Rover, Lexus ...........7 Lincoln, Mazda, Mercedes-Benz, Mercury,

Mitsubishi ........................................................8 Nissan Division, Porsche, Saab, Saturn,

Subaru ............................................................9 Suzuki, Toyota Division, Volkswagen division,

Volvo ..............................................................10 Glossary of terms ...............................................10 Certified pre-owned vehicle sales,

2006 by month ...............................................11

Sponsored by

I NTR O D U CTI O N

Ahundred grand: That has become the mileage norm for powertrain warranties on certified used vehicles.

to competing brands, one way to do that is to underwrite your problems," he says.

Star ting in the 2007 model year, Ford

For its annual guide to certified pre-owned Motor Co. extended the power train warranty

vehicle programs, Automotive News reviewed on Ford and Mercur y cer tified vehicles to

the 29 programs operated by automakers. Of 6 years/100,000 miles. Cer tified Lincoln

them, 23 offer warranties that cover used

cars and trucks get the same warranty

vehicles' powertrains for as much as

bumper to bumper. Previously, power train

100,000 miles, starting from the time the car coverage on the company's certified vehicles

or truck was sold as new.

was for 6 years/75,000 miles.

There's greater variation in the length of time the owner of a certified vehicle has to

`Rosy' forecast

accumulate those miles. This year, Hyundai

Last February, the GM Certified program

Motor America stretched its 100,000-mile

extended its limited powertrain warranty from

powertrain coverage to 10 years. Previous

3 years/36,000 miles to 5 years/100,000 miles.

coverage was for

GM Certified Manager

6 years/75,000 miles.

The longer warranty is paying off. "Consumers Paul Pejza says the longer

Tom Libby, senior director of industry analysis for the Power Information Network,

are responding, our dealers are responding, and our sales are up."

warranty is paying off. Since it took effect, he says, the brand has signed up 553 new dealers,

says longer warranties

PAUL PEJZA

bringing enrollment to nearly

reassure certified customers that the factory is standing

MANAGER, GM CERTIFIED PROGRAM

3,900 dealers. A July survey showed a

behind their purchases. They also strengthen 70 percent increase from a survey in

new-vehicle sales by boosting residual values,

February in the number of GM Certified owners

he says.

who cited the extended warranty as a primary

"Manufacturer support is credible to a lot of reason for their purchase, Pejza says.

consumers," Libby says.

From January through August, GM Certified

A vehicle's powertrain typically encompasses sold 317,398 certified cars and trucks, nearly a

its engine, transmission and driveshaft.

6 percent increase from the year-ago period.

These components rarely fail in later-model

"Consumers are responding, our dealers are

cars and trucks. But when they do, they can responding, and our sales are up," Pejza

bring hefty repair bills.

says. "The overall picture is pretty rosy."

Quality focus

Toyota Motor Sales U.S.A. Inc. increased

Richard Spitzer, global managing partner of its cer tified-vehicle power train warranty to

the automotive practice at the consulting firm 84 months/100,000 miles two years ago. Its

Accenture, says longer warranties can

previous warranty was for 72 months/100,000

enhance an automaker's reputation for quality. miles.

Or, Spitzer says, the warranties can be a

Norm Olson, sales operations manager of

stopgap fix for companies that sell vehicles

Toyota Certified Used Vehicles, notes that the

with reliability problems.

program's warranty is longer than Toyota's

Studies show that a consumer's experience

new-vehicle powertrain warranty, which is for

with a vehicle in the last few months of

5 years/60,000 miles.

ownership greatly influences his or her decision

"Even if you buy a certified car that is six

to buy that vehicle's brand again, Spitzer says. months old, you still get two years more

"If you have issues with reliability and durability warranty and an extra 40,000 miles," Olson

with your product, and you want to prevent losses says. "The warranty is very important."

3

CERTIFIED PRE-OWNED VEHICLE CHECKLIST

airbags safety belts antenna steering wheel audio alarm & navigation

systems carpet floor mats heat

engine fluids and filters leaks fans

frame chassis shafts exhaust system transmission transaxle

major damage from rust or natural disaster paint body panels bumpers/fenders hinges

VIN match

Interior

vent AC defogger defrost lighter power outlets trim mats headliner seats

head restraints power windows security codes moonroof sunroof convertible top horns interior lights ashtrays glove box

wires hoses belts mounts

Underhood

radiator pumps tanks battery

Underbody

differential transfer case tires and wheels joints clutch bars

bushings suspension steering brakes hoses lines

Exterior

brackets doors hood deck tailgate molding grille

trim roof rack wheels wheel covers windows and windshield outside mirrors

Vehicle history

service bulletins

recalls

engine performance indicator lights gauges

carpet trim

Road test

noise and vibration transmission and

squeaks and

clutch operation

rattles

steering and

cruise control

suspension

Trunk/luggage compartment

weatherstripping

jack

spare tire

dashboard illumination vanity mirror sun visor fuel and trunk release odors

alternator ignition system starter

calipers cylinders pads shoes rotors drums

wipers exterior lights door locks remotes

scheduled maintenance

brakes/ABS

tool kit

Sponsored by

CERTIFIED PRE-OWNED VEHICLE SALES 7 MONTHS '07 VS '06

7 mos. 2007

7 mos. 2006

Percent change

7 mos.'07 share

GM Certified*

277,493

262,082

5.9

27.6

Cadillac

22,726

23,571

?3.6

2.3

Hummer

692

494

40.1

0.1

Saab

4,666

4,927

?5.3

0.5

Saturn

10,305

11,804

?12.7

1.0

GENERAL MOTORS

315,882

302,878

4.3

31.4

Lexus

28,896

25,695

12.5

2.9

Toyota Division

160,594

152,265

5.5

16.0

TOYOTA MOTOR SALES

189,490

177,960

6.5

18.9

Ford division, Lincoln, Mercury

92,449

110,808

?16.6

9.2

Jaguar

5,838

7,576

?22.9

0.6

Land Rover

3,358

4,408

?23.8

0.3

Volvo

13,928

16,555

?15.9

1.4

FORD MOTOR CO.

115,573

139,347

?17.1

11.5

Acura

23,752

21,002

13.1

2.4

Honda Division

124,923

107,270

16.5

12.4

AMERICAN HONDA

148,675

128,272

15.9

14.8

Chrysler group**

74,644

69,332

7.7

7.4

Mercedes-Benz

30,475

27,261

11.8

3.0

DAIMLERCHRYSLER

105,119

96,593

8.8

10.5

BMW

49,563

51,412

?3.6

4.9

Audi

15,088

14,527

3.9

1.5

Bentley

352

226

55.8

?

Volkswagen division

20,831

23,369

?10.9

2.1

VOLKSWAGEN OF AMERICA

36,271

38,122

?4.9

3.6

Infiniti

1,588

1,216

30.6

0.2

Nissan Division

32,975

27,465

20.1

3.3

NISSAN NORTH AMERICA

34,563

28,681

20.5

3.4

PORSCHE

3,845

3,589

7.1

0.4

MAZDA

3,138

3,754

?16.4

0.3

SUBARU

1,698

1,282

32.4

0.2

MITSUBISHI

709

1,018

?30.4

0.1

SUZUKI

23

45

?48.9

?

HYUNDAI

603

136

?

0.1

TOTAL CERTIFIED

1,005,152

973,089

3.3

100.0

*Includes Buick, Chevrolet, GMC, Oldsmobile and Pontiac

**Includes Chrysler Division, Dodge and Jeep

Estimate

Source: Automotive News Data Center and Autodata Corp.

4

Program name/Top executive/Web address

Acura

Acura Certified Pre-Owned Vehicles Dan Crowe national remarketing manager pre_owned

No. of dealers in program/ Total newcar dealers

Dealer fees per vehicle

Dealer criteria

Vehicle criteria

Independent third-party inspection Warranty details

Vehicle history report provided

Is there a

Is the

Dealer

warranty warranty return/

deductible?/ transferable?/ exchange

cost

fee

program

268/ $415 Dealers sign a ? 150-point inspection

Yes ? 60 months/62,000 miles from original in-service date

Yes

268

participation ? 6 model years or newer

? Powertrain 84 months/100,000 miles from original in-service date

agreement

? Less than 80,000 miles

? 12 months/12,000 miles comprehensive after new-car

warranty expires

? Powertrain 36 months/50,000 miles after new-car warranty expires

No/$0

Yes/$0

3 day exchange

only

Audi

Audi Certified Pre-Owned Mark Ilijanic national certified pre-owned manager certified

Bentley

Bentley Certified Pre-Owned Patrick Clifford director of operations

265/ $1,150- Audi franchised ? 300+ point inspection

Yes ? Remainder of new vehicle limited warranty

265 $1,675 dealer in good ? 5 model years or newer

? 24 months/50,000 miles comprehensive after new-car

standing

? Less than 60,000 miles

warranty expires

? In service for at least

? Total vehicle miles not to exceed 100,000 miles

4 months or 4,000 miles

? Roadside assistance

Yes Yes/$50 No/$0

None

36/ $2,590 Trained and

? 154-point inspection

No ? 4 model years receive one year comprehensive warranty

Yes

36

certified staff, ? 7 model years or newer

? 4-7 model years receive one year limited warranty

meets CSI

with full benefits of new vehicle and invitation to factory warranty

standards, must

? Roadside assistance

pass all car audits

No/$0

Yes/$50 Varies by dealer

BMW

Certified Pre-Owned by BMW Bill Bates manager, pre-owned sales cpo

338/ $850- Dealers sign a ? Comprehensive inspection No ? 24 months/50,000 miles comprehensive after new-car

338 $1,195 participation ? 5 model years or newer

warranty expires

agreement

? Less than 60,000 miles

? Roadside assistance

No Yes/$50 Yes/$0 Dealer option

Cadillac

Cadillac Certified Pre-Owned Vehicles Jeffrey C. Edwards director of sales & retail development, Cadillac

1,083/ $1,000 Available to all ? 110+ point inspection

No

1,500

Cadillac dealers, ? 48 months from original

participation is in-service date

voluntary

? Less than 50,000 miles

? 6 years/100,000 miles comprehensive, bumper to bumper from Yes original in-service date ? 2 years/50,000 miles comprehensive after new-car warranty expires ? 6 months of OnStar at no additional cost ? Trip interruption and roadside assistance

Note: Total new-car dealers as of September 2007. Dealer fees may include per-vehicle certification fees, advertising fees and warranty fees.

Sponsored by

No/$0

Yes/$0

None

Source: Automotive News Data Center

5

Program name/Top executive/Web address

No. of dealers in program/ Total newcar dealers

Dealer fees per vehicle

Dealer criteria

Vehicle criteria

Independent third-party inspection Warranty details

Vehicle history report provided

Is there a

Is the

Dealer

warranty warranty return/

deductible?/ transferable?/ exchange

cost

fee

program

Chrysler Motors LLC

Brand Spankin Used Certified

2,043/ $375- Must be a

? 125-point inspection

Yes ? Powertrain 8 years/80,000 miles from original in-service date

Yes Yes/$100 Yes/$150 Yes

Pre-Owned Vehicles

3,669 $405 Five Star dealer ? 6 model years or newer

? 3 months/3,000 miles Maximum Care from CPO date of sale

Darryl R. Jackson

? Less than 65,000 miles

? 3 months/3,000 miles comprehensive after new-car warranty expires

vp, U.S. sales

? Roadside assistance and rental car allowance



Ford division

Ford Quality Checked Certified

2,497/ $395 Compliance test ? 115-point inspection

Yes ? Powertrain 72 months/75,000 miles from original in-service date Yes Yes/$100 Yes/$0

None

Pre-Owned Program

3,641

required,

? 4 model years or newer

and 36 months/39,000 miles after new-car warranty expires on

Glenn Burke

$500-$1,500 ? Less than 50,000 miles

2003-06 models

manager, certified pre-owned Ford/Lincoln Mercury

annual fee

? Powertrain 72 months/100,000 miles from original in-service date and



according to dealer

12 months/40,000 miles after new-car warranty expires on 2007 models

planning volume

? Roadside assistance

GM

GM Certified Used Vehicles Mark Mathews director, GM used vehicle activities ,

3,900/ $399 Dealers sign a ? 117+ point inspection

Yes ? Powertrain 5 years/100,000 miles from original in-service date

Yes

No/$0

Yes/$0 3 days/

7,000

participation ? 6 model years or newer

? Powertrain 36 months/36,000 from CPO date of sale

150 miles

agreement

? Less than 60,000 miles

? 3 months/3,000 miles extended warranty after new-car

customer

warranty expires

satisfaction

? Courtesy transportation and roadside assistance

guarantee

Honda Division

Honda Certified Used Cars Dan Crowe national remarketing manager certified

1,001/ $359 Dealers sign a ? 150-point inspection

Yes ? 48 months/48,000 miles from original in-service date

Yes

No/$0

Yes/$0

None

1,021

participation ? 6 model years or newer

? Powertrain 84 months/100,000 miles from original in-service date

agreement

? Less than 80,000 miles

? 12 months/12,000 miles comprehensive after new-car

warranty expires

? Powertrain 48 months/64,000 miles after new-car warranty expires

Hummer

Hummer Certified Pre-Owned Vehicles John Roth director of sales, Hummer

117/ $1,000- Available to all ? 110+ point inspection

No ? 6-years/100,000-miles comprehensive bumper-to-bumper

Yes

171 $1,800 dealerships, ? 48 months from

warranty from original in-service date

participation is original in-service date

? 24-month/50,000 mile comprehensive beyond new-car warranty

voluntary

? Less than 50,000 miles

? Trip interruption protection, 6 months of OnStar at no additional

cost and roadside assistance

Note: Total new-car dealers as of September 2007. Dealer fees may include per-vehicle certification fees, advertising fees and warranty fees.

Sponsored by

No/$0

Yes/$0

None

Source: Automotive News Data Center

6

Program name/Top executive/Web address

Hyundai

Hyundai Certified Pre-Owned Kimberly Walker national manager, Assurance Products

No. of dealers in program/ Total newcar dealers

Dealer fees per vehicle

Dealer criteria

Vehicle criteria

Independent third-party inspection Warranty details

Vehicle history report provided

Is there a

Is the

Dealer

warranty warranty return/

deductible?/ transferable?/ exchange

cost

fee

program

380/ $449 Dealer must ? 150-point inspection

No ? Powertrain 10 years/100,000 miles from original in-service date Yes Yes/$50 Yes/$0 None

754

enroll and sign ? 5 model years or newer

? Trip interruption services and roadside assistance

a participation ? Less than 60,000 miles

agreement

Infiniti

Infiniti Certified Pre-Owned Mark Igo vp and general manager, Infiniti division

182/ $895 Dealers sign a ? 142-point inspection

Yes ? 72 months/100,000 miles from the original in-service date with an Yes Yes/$50 Yes/$0

None

182

participation ? 4 model years or newer

optional 1-year service contract

agreement

? Less than 60,000 miles

? 24 months/40,000 miles comprehensive after new-car warranty expires

? Powertrain 12 months/30,000 miles after new-car warranty expires

? Trip interruption coverage and roadside assistance

Jaguar

Jaguar Select Edition Certified Pre-Owned Marti Eulberg executive vp, marketing and sales

179/ $1,195- Available to all ? 140-point inspection

No ? 48 months/50,000 miles from original in-service date

Yes

No/$0

Yes/$0

None

179 $1,495 Jaguar dealers ? 5 model years or newer

? Powertrain 72 months/100,000 miles from original in-service date

? Less than 60,000 miles

? 24 months/50,000 miles comprehensive after new-car

warranty expires

Land Rover

Land Rover Certified Richard Beattie executive vp, marketing and sales

177/ $985- Available to all ? 140-point inspection

No ? 6 years/75,000 miles from original in-service date

177 $1,470 Land Rover

? 5 model years or newer

? 24 months/25,000 miles after new-car warranty expires

dealers

? Less than 60,000 miles

(for vehicles purchased prior to 11/7/05, coverage is

12 months/12,000 miles after new-car warranty expires)

Yes Yes/$100 Yes/$0

None

Lexus

Lexus Certified Pre-Owned Marv Ingram national CPO sales manager cpo/index.html

223/ $845 None 223

? 161-point inspection

Yes ? 100,000 miles from original in-service date

? 6 model years or newer

? 36 months from CPO date of sale

? Less than 60,000 miles

? Warranty varies by model and mileage after new-car

warranty expires

Note: Total new-car dealers as of September 2007. Dealer fees may include per-vehicle certification fees, advertising fees and warranty fees.

Sponsored by

Yes

No/$0

No/$0

None

Source: Automotive News Data Center

7

Program name/Top executive/Web address

Lincoln

Lincoln Premier Certified Pre-Owned Glenn Burke manager, certified pre-owned

No. of dealers Dealer

in program/ fees Total new- per Dealer

car dealers vehicle criteria

Vehicle criteria

Independent third-party inspection Warranty details

Vehicle history report provided

Is there a

Is the

Dealer

warranty warranty return/

deductible?/ transferable?/ exchange

cost

fee

program

1022/ $595 Compliance test ? 141-point inspection

Yes ? 72 months/75,000 miles from original in-service date and

Yes Yes/$100 Yes/$0

None

1,333

required,

? 4 model years or newer

24 months/25,000 miles after new-car warranty expires

$500-$1,500 ? Less than 50,000 miles

on 2003-06 models

annual fee

? 72 months/100,000 miles from original in-service date and

based on dealer

24 months/50,000 miles after new-car warranty expires on 2007 models

planning volume

? Roadside assistance

Mazda

Mazda Certified Pre-Owned John Sellers national manager, sales operations profits

386/ $399- Dealers sign a ? 100-point inspection

No ? Powertrain 8 years/100,000 miles from original in-service date

Yes

No/$0

Yes/$0

None

674 $799 participation ? 5 model years or newer

? Additional powertrain 36 months/38,000 miles on vehicles

agreement

? Less than 60,000 miles

purchased after Jan. 1, 2003

? 12 months/12,000 miles comprehensive after new-car warranty expires

? Powertrain 36 months/38,000 miles after new-car warranty expires

? Roadside assistance

Mercedes-Benz

Mercedes-Benz Certified Pre-Owned Program Mike Slagter vp, sales operations

340/ $595- Dealers must ? Rigorous inspection

Yes ? 100,000 miles from original in-service date

340 $1,595 meet training and ? 6 model years or newer

? 12 or 24 months extended limited warranty

performance ? Less than 75,000 miles

? 12 months after new-car warranty expires

criteria

Yes

No/$0

Yes/$0 7 days/

500 miles

exchange

Mercury

Mercury Certified Pre-Owned Glenn Burke manager, certified pre-owned

1,051/ 1,921

$395 Compliance test ? 115-point inspection

Yes

required, no annual ? 4 model years or newer

fee if enrolled in ? Less than 50,000 miles

Ford or Lincoln

CPO program

? Powertrain 72 months/75,000 miles from original in-service date and Yes 36 months/39,000 miles after new-car warranty expires on 2003-06 models ? Powertrain 72 months/100,000 miles from original in-service date and 12 months/40,000 miles after new-car warranty expires on 2007 models ? Roadside assistance

Yes/$100

Yes/$0

None

Mitsubishi

Mitsubishi Certified Pre-Owned Program Dan Kuhnert executive vp, sales & marketing

205/ $199- One-time 491 $499 enrollment

fee of $595

? 123-point inspection

No

? 5 model years or newer

? Less than 60,000 miles

? 10 years/100,000 miles from original in-service date

Note: Total new-car dealers as of September 2007. Dealer fees may include per-vehicle certification fees, advertising fees and warranty fees.

Sponsored by

Yes

No/$0

No/$0

None

Source: Automotive News Data Center

8

Program name/Top executive/Web address

Nissan Division

Nissan Certified Pre-Owned Allen Childs vp, parts and service division certified

No. of dealers in program/ Total newcar dealers

Dealer fees per vehicle

Dealer criteria

Vehicle criteria

Independent third-party inspection Warranty details

985/ 1,071

$349 Dealers sign a ? 142-point inspection

Yes

participation ? 5 model years or newer

agreement

? Less than 60,000 miles

? 84 months/100,000 miles from original in-service date ? Powertrain 24 months/40,000 miles after new-car warranty expires ? Optional Security+Plus Pre-Owned Preferred WRAP ? Roadside assistance

Vehicle history report provided

Is there a

Is the

Dealer

warranty warranty return/

deductible?/ transferable?/ exchange

cost

fee

program

Yes Yes/$50 No/$0

None

Porsche

Porsche Approved Certified Pre-Owned Vehicle Program Kevin Harvey national manager, pre-owned vehicles porschedealer; usa

213/ $1,495- Compliance

? 100+ point inspection

Yes ? Up to 6 years/100,000 miles from date of sale

213 $1,595 with CPO policy ? 8 model years or newer

? Maximum of 24 months/100,000 miles after new-car

and procedures ? Less than 100,000 miles

warranty expires

? Roadside assistance

Yes

No/$0

Yes/$0

None

Saab

Saab Certified Mark Dysarz retail operations specialist/Saab CPO manager

232/ $1,195 Dealers sign a ? 110+ point inspection

No ? 72 months/100,000 miles from original in-service date

245

participation ? 4 model years or newer

? Extended limited warranty available

agreement and ? Less than 60,000 miles

? Roadside assistance

are in good

standing

Yes

No/$0

Yes/$0

None

Saturn

Saturn Certified Pre-Owned* Ann Campbell Saturn retail programs saturn/vehicles/preowned *CPO program scheduled to begin Oct. 15, 2007

435/ $115- Participation ? 117-point inspection

No ? Limited powertrain 5 years/100,000 miles

435 $499 included

? 5 model years or newer

? 39-month/39,000-mile extended warranty if vehicle is within

in franchise

? Less than 60,000 miles

manufacture's base warranty period

agreement

? 3 months/3,000 miles after new-car warranty expires

Yes

No/$0

Yes/$0 3 days/

150 miles

vehicle

exchange

Subaru

Subaru Certified Pre-Owned Vehicle Tim Colbeck vp, sales

435/ $495 + Dealers sign a ? 152-point inspection

No ? Powertrain 6 years/100,000 miles from original in-service date

Yes

No/$0 Yes/$35 None

581 surcharges participation ? 5 model years or newer

? Roadside assistance

agreement

? Less than 80,000 miles

Note: Total new-car dealers as of September 2007. Dealer fees may include per-vehicle certification fees, advertising fees and warranty fees.

Sponsored by

Source: Automotive News Data Center

9

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