By Lawrence Papoff
Volvo Canada may have created a monster: a CPO program that makes buying a used Volvo as attractive and maybe more attractive than buying a new one.
Most compelling is the six year/160,000 km warranty that covers everything from the windshield to the safety equipment. Word-wise it could be the shortest in the industry.
“If it’s not excluded, it’s included,” is the way Emanuel Lichtinstein, Volvo Canada’s remarketing manager, describes the buyer protection plan.
“Is it as good as buying a new Volvo?” we asked.
“It can be better,” Lichtinstein replied. “If you buy a new Volvo, you get a four year/80,000 km warranty. You can buy a one-year old Volvo and get five years and 160,000 km protection. So it can be better.”
(The CPO warranty is calculated from the original in-service date and zero km.)
The warranty is also transferable and there’s no deductible on any claim, he said.
The nationwide program debuted April 1.
Candidates for the program must have fewer than 120,000 km on the odometer and be no more than five years old with no major collision damage. Then they have to pass a 130-point inspection, he said.
Other features include emergency roadside and towing service, trip routing and trip interruption expense benefits.
Should the owner experience a warranty-related breakdown more than 80 km from home, Volvo will reimburse the owner for meals, lodging, car rental, and commercial transportation for up to three days (up to $1,000).
All CPO vehicles come with a CarProof vehicle history report. The report may be available where the vehicle is listed online or it’s there for the asking at a Volvo dealer.
To make the vehicles even more attractive, they come with subvented finance rates of 1.9 to 4.9 per cent, depending on the term.
The dealers’ reaction?
“They love it,” Lichtinstein said.
Shoppers will find program cars sporting the distinctive Volvo/CarProof CPO logo on AutoTrader, Auto123 and Boost websites as well on dealers’ sites.
“We have worked with these third-party vendors and our in-house Internet provider, DMG, to ensure the flow of these vehicles is seamless for ease of shopping,” Brad Painter, Volvo Canada’s national marketing manager, said.
The OEM’s own website will be spruced up as well and dealers will be getting marketing material and an advertising template for use in their local newspapers.
“Volvo Canada is excited to introduce a class-leading CPO program that will be profitable from a dealer’s standpoint and beneficial from the consumer’s standpoint,” Painter said.