zzdcar
Home
/
Reviews
/
Wrenching
/
Honda And GM Scrutinize Dealers Selling Certified Pre-Owned Vehicles
Honda And GM Scrutinize Dealers Selling Certified Pre-Owned Vehicles-April 2024
2024-02-19 EST 22:13:45

Purchasing a is often a great way to save some money over buying new. CPO cars are supposed to go through a rigorous process to acquire that certification, making it a bit better than just a "used car." Honda and GM are cracking down on dealers who cut corners on the certification process.

Brian Butts, manager of auto remarketing at American Honda, and Larry Pryg, national manager of GM Certified used operations, they told in order to maintain the integrity of their respective brands' certification programs they have suspended some dealerships from selling CPO vehicles.

Neither representative would disclose exactly how many dealers were suspended, but they did say that most of their dealerships adhere to the proper certification process. Honda and Acura are re-examining their CPO programs to ensure a quality vehicle is being sold on the pre-owned market. Within the restructuring effort the automaker is altering the way it oversees dealer compliance.

"I think every OEM is concerned with ensuring that the dealerships are properly certifying the vehicles, doing what's necessary both pre- and post-sale...Unfortunately, we can't visit every dealership ourselves, so we have companies that assist us...We want to ensure that we're doing the best we possibly can to ensure that our dealers are certifying the vehicles properly and documentation is complete and accurate." - Brian Butts

If the automaker determines a dealer is out of compliance that store loses their ability to sell Honda/Acura certified vehicles for 90 days. They must then submit a corrective action plan to re-qualify for CPO sales.

While industrywide CPO sales were up 9% this year. Honda's certified vehicle sales are down 7%. The dealer suspensions contributed to this decline, but the Japanese tsunami in 2011 limited production volume. So there are less cars coming off lease for to be re-sold as CPO cars.

For several years, GM has a program that sends representatives to dealerships several times a year to make sure the dealers are certifying the proper vehicles. However, in the past 18 months GM has begun to monitor the process more closely and issue suspensions to dealers who are not maintaining the process.

"For the first time, we said, 'If you fail [GM audits] consecutively, we will remove you from the program...That's a discussion we've had with dealers for over a year. The idea is to fix them, not get them out." - Larry Pryg

Both brands are attempting to increase the consumer confidence with their pre-owned vehicles. The interesting thing is Honda has a reputation among the average car-buyer for quality and reliability, so they want to maintain status-quo. While GM in the wake of massive recalls is looking to re-build that consumer trust.

Does the increased scrutiny from these brands on their dealerships make you more or less likely to purchase a CPO car from them?

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Wrenching
You Can Buy This Sexy Maserati For The Price Of A Used Toyota Camry
You Can Buy This Sexy Maserati For The Price Of A Used Toyota Camry
At what point to you quit faking it 'til you make it and proclaim that you've in fact made it? Personally, I think that point comes right after you buy a hand-built boutique sports car with a Ferrari V8, like , now yours for the price of a used base...
Apr 17, 2026
Nissan Adding More
Nissan Adding More "Ladies First" Dealerships In Japan To Target Women
A 2012 survey conducted by the Japanese Ministry of Economy, Trade and Industry, revealed that women alone or jointly with their husbands, make the decisions on seventy-five percent of the major purchases. Nissan understands that car buying in Japan is not just a man's game and aims to cater to...
Apr 17, 2026
Would You Lease A Used Car?
Would You Lease A Used Car?
New car sales had a record year in 2014, this also means that dealers were taking in more trades than before. Now used car inventories are piling up and dealerships are looking for ways to put budget minded buyers in more expensive pre-owned cars. According to a recent survey, we...
Apr 17, 2026
Here's How I Bought The Roughest Lexus SC300 In The Known Universe
Here's How I Bought The Roughest Lexus SC300 In The Known Universe
There's a certain point in life when you're ready to join the more-money-than-brains club, if only it weren't for the annoying fact that you have no money. It's when your modus operandi seems to be comprised completely of knee-jerk bad decisions, like this one, where I bought perhaps the nastiest...
Apr 17, 2026
Here Are Four Reasons Why Leasing Is A Horrible Idea For Car Lovers
Here Are Four Reasons Why Leasing Is A Horrible Idea For Car Lovers
Car dealers often make big deals out of leasing. On its face, you can get a brand new, warrantied car that no one but the service tech had farted in for a price that rivals a value meal at McDonald's, per month. It's a win-win. But before you run to...
Apr 17, 2026
Here Is How You Can Spend Less Time At The Dealership
Here Is How You Can Spend Less Time At The Dealership
Even in the age of internet car shopping, I still hear stories from people who spent half their day at a dealership to purchase a car. Cars are one of the few purchases that take a marathon to buy. According to a recent study, once a customer is at the...
Apr 17, 2026
Copyright 2023-2026 - www.zzdcar.com All Rights Reserved