It’s often said that for every car there is a buyer, however, the key to making the sale is giving buyers confidence in their purchases. For older and high mileage cars, certifications can give buyers the confidence they need to purchase vehicles faster, while giving sellers a competitive edge and stronger profits.
Research from a recent white paper from Manheim Consulting, “Certification Impact on Low Grade & High Mileage Units,” found certified wholesale vehicles sell faster and at rates 4 to 8% higher than their uncertified counterparts. In fact, the benefits and returns only rise as mileage surpasses 75,000, signaling buyers are willing to pay a premium for the guarantee of a mechanically sound unit, even at a lower grade or higher mileage.
“Manheim’s goal is to build trust and confidence between buyers and sellers within the wholesale market,” said Brett Woods, vice president of Assurance at Cox Automotive. “While this data reinforces that vehicles with Certifications are at an advantage, we’re also reminded that giving buyers assurance before the sale is the best way to create a positive experience and earn loyalty.”
Manheim launched its own certification program, Manheim Certified, to improve profit margins for the seller and protect the interests of all parties involved. It provides buyers a seven-day, 300-mile guarantee, giving them more confidence to do business. If something does happen with the vehicle, Manheim will either repair the vehicle in-house, cover the costs of the repair or in periodic cases, take the vehicle back. In any case, sellers of Manheim Certified units are removed from the post-sale claims process, so they don’t have to worry about arbitration.
Further benefits and competitive advantages of certifications are:
- 4 to 8% greater returns per vehicle sale
- One third fewer arbitrations
- 6.6% more Simulcast sales
- 48% wider Simulcast audience reach and more bids per vehicle
Manheim Certified is currently available to all sellers in the Manheim marketplace. Vehicles must be under 125,000 miles, have an InSight Condition Report and be on-site to qualify.