Honda and General Motors dealers beware: If you're not strictly adhering to the rules laid out by the certified pre-owned overlords, you might find yourself suspended until conditions improve.
Automotive News reports Honda CPO manager Brian Butts and GM CPO chief Larry Pryg both said most of the dealerships under their watch properly administer their respective programs, but those who do not are temporarily suspended.
For Honda, those suspensions are part of why CPO sales are down in 2014; production cuts — and the subsequent low off-lease volumes — following the 2011 Tōhoku earthquake and tsunami account for the rest of the missing sales. Sales dropped 7 percent in comparison to 2013 to 186,248 units.
Meanwhile, GM's program saw a 10 percent increase in sales through August compared to last year, with 255,077 units leaving the used lot.
As for how those programs are monitored, Honda uses third-party companies to certify compliance, while GM Certified sends out its own reps to visit dealerships one to four times annually; those who comply receive fewer visits.
Honda's program, which is undergoing a makeover as of this writing, requires non-compliant dealers to submit a plan and work with field staff to be able to sell CPO vehicles again after the 90-day suspension is lifted. GM also removes non-compliant dealers from the program, though no length of time was stated by Pryg.
The post Honda, GM Cracking Down On Non-Compliant CPO Programs appeared first on The Truth About Cars.
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