CPO warranties can be a huge value builder during the sales process and can lead to higher F&I sales, but if customers don’t know who their warranty provider is, they may hesitate to conclude the sale.
JM&A Group has addressed this name recognition issue by aligning with one of the most respected, trusted, and recognized brands in the automotive space, J.D. Power.
CPO warranties can be a huge value builder during the sales process and can lead to higher F&I sales
What are JM&A Group's line of J.D. Power Branded Products?
JM&A Group has formed an alliance with J.D. Power to offer a J.D. Power branded lineup of F&I products designed to resonate with consumers.
These products function the same as they always have, but now come with the recognized name of one of the nation's top authorities in automotive quality and reliability.
This directly helps customers overcome doubts as the J.D. Power brand represents to consumers a higher level of care and quality has gone into the vehicle certification, which makes the consumer more comfortable with the vehicle they purchased.
"90% of the people who walk into our store know the J.D. Power brand. The familiarity that J.D. Power brings to the table and the reassurance that goes alongside that is just simply good for business. At the end of the day, all vehicles break but our customers are happy and feel taken care of knowing that this product is backing up their purchase."
F&I Manager, Encore CDJR
Whether buyers are completing their purchase at a dealership or through a Virtual F&I process, they are hoping for the same thing as the F&I manager — a quick, simple, and painless process that allows them to safeguard their recent car purchase.
When a warranty or F&I product is recognized and easy to comprehend, the transaction will play out smoothly, leading to more revenue for the dealership and a happy, satisfied customer who is protected.
At the end of the day, the new J.D. Power® Edge Certified Pre-Owned Program* is intended to strengthen buyer confidence that their pre-owned car purchase is a secure investment.
J.D. Power® Edge in Action at the Dealership: Certified Pre-Owned Program
To see the power of this program, it's worth looking at the performance gains experienced by a longtime JM&A Group partner that is among the first dealerships to offer the comprehensive J.D. Power® Edge Certified Pre-Owned Program:
The Pompano Automotive Group is run by Joey Accardi and has been a partner with JM&A Group for over 25 years. The dealer group signed on in April of 2022 to offer the J.D. Power® Edge brand of products beginning with the Certified Pre-Owned Program.
Since launching, the automotive group has seen significant positive impacts to its sales and F&I profits as well as customer satisfaction.
The Pompano Automotive Group has seen significant positive impacts to its sales and F&I profits as well as customer satisfaction
One of Pompano Automotive’s stores that has seen the most significant impact is Encore Chrysler Dodge Jeep Ram, a dealership located in Mobile, Alabama.
Goals and Process
The dealership wanted a program that would allow it to certify its pre-owned vehicles of other makes and models, not just those belonging to its franchise’s brand.
Leadership at Encore CDJR saw the J.D. Power® Edge CPO Program as a way to establish an OEM-level CPO program for their other branded vehicles, with J.D. Power's compelling name recognition providing the authority that would normally come from an OEM's branding.
The dealership provides the J.D. Power® Edge Certified Pre-owned Program* warranty on every eligible used vehicle in inventory. Additionally, the dealership presented informational material at the point of sale, coupled with online mentions, to make customers aware of the J.D. Power® Edge Certified Pre-owned Program protection and benefits.
Results and Outcomes
The J.D. Power® Edge Certified Pre-Owned Program has shown a rapid success for the dealership, both in quantitative and qualitative ways.
- During the first six months of the new offering, 89% of pre-owned inventory sold had the J.D. Power® Edge Certified Pre-owned Program warranty in place
- Over that period, J.D. Power® Edge Certified Pre-owned Program average total gross profit was nearly $1,424 higher than non-certified pre-owned**
- Of that $1,424 increase, front end sales gross rose by $838
- F&I PVR increased by $586
In addition to these impressive numbers, the company's F&I managers report that having the J.D. Power® Edge Certified Pre-Owned Program has improved their ability to get buyers to purchase extended service contracts. Customers' peace of mind, boosted by the familiar J.D. Power name, is the X factor making this growth possible.
"The J.D. Power® Edge CPO product gives something for the customer to look forward to and has worked well for us so far. From a service perspective the assurance this gives our customers is unmatched. Knowing they won't have to come out of pocket for something big or small is a big deal for them. We have seen an increase in CSI since we have stood this up and our customers are happy"
Service Manager, Encore CDJR
Next Steps for J.D. Power® and JM&A Group
The intended roll-out is set to include an expanded range of service contracts, creating options for more types of vehicles and coverage. The brand is also intended to grow to include training products for sales and F&I compliance best practices.
The ongoing connection between JM&A Group and J.D. Power® Edge shows what is possible when industry-leading brands collaborate. Reliable F&I offerings paired with a trusted name may be just the combination that drives a dealership’s increased success in the closely related realms of customer trust and F&I sales.
The intended roll-out is set to include an expanded range of service contracts, creating options for more types of vehicles and coverage.
If you are looking for next level F&I support and exciting J.D. Power® Edge brand of F&I products that give your customers peace of mind, contact us now.
"At the end of the day this gives our customers a serious peace of mind. They are getting a platinum level of protection on used cars that they otherwise would not be able to get. The value for the customer is there and the value for us is absolutely there."
Sales Manager, Encore CDJR
*The J.D. Power® Edge Certified Pre-Owned Program is available in all states except for New York, where it is available as the J.D. Power® Edge Pre-Owned Program.
All J.D. Power® Edge Certified Pre-Owned Vehicles come with 24-hour Roadside Assistance and Towing benefits, including coverage up to $50 for eligible services.
J.D. POWER® does not determine eligibility for benefits, claims or the amount of claim payments, all of which are determined by the Administrator.
J.D. POWER® is a registered service mark of J.D. Power. | J.D. POWER® EDGE is administered by Fidelity Warranty Services, Inc. and operated by Dealer.
**Performance data is based on store performance from April 2022 – September 2022.