• by Karl Greenberg , June 13, 2008

Internet auto marketing site eBay Motors has launched a division for marketing certified pre-owned (CPO) vehicles. CPO cars and trucks, a middle-ground between new and used cars, are late-model, relatively low-mileage vehicles given a rigorous inspection by the automaker and backed with a warranty. 

The new property will be exclusively sponsored by Lexus, but initially also carries General Motors and Chrysler vehicles. GM was the first to jump onboard, and all three companies will list their entire national CPO inventory on eBay Motors at no cost to dealers, per eBay. The company says 5,000 certified used-vehicle dealers feature inventory in the "eBay Motors CPO Showroom."

"In this down economy, auto shoppers' consideration for used vehicles remains strong, and interest in certified pre-owned is drastically increasing. The CPO Showroom brings this highly desirable inventory to the auto shoppers on our site to provide them with even better selection." says Rob Chesney, vice president, eBay Motors, Marketplaces, in a statement. "Additionally, franchise dealers and auto manufacturers understand used vehicles to be an important segment to drive revenue, and eBay Motors strives to provide dealers qualified, certified-used automotive shoppers through this new, richer shopping experience."

EBay says it anticipates 12 million monthly unique visitors. Chrysler, which will sell CPO Dodge, Chrysler and Jeep vehicles through the platform will, per eBay have some 15,000 vehicles on the site, as part of its "Brand Spankin' Used" CPO program.

Chrysler's deal with eBay is not exclusive, per the company, which has similar deals with the likes of Cars.com and AutoTrader.com. Lisa Way, Chrysler Senior Manager, Certified Pre-Owned Vehicles, says the company will "certainly promote our new relationship with eBay Motors through various communications. EBay already gets 12-13 million visits per day." She says that on the Chrysler, Jeep or Dodge vehicles pages, there will banner and tower ads using the "Brand Spankin Used" message.

The eBay Motors CPO Showroom lets consumers look at local-area CPO classified-ad style inventory. Dealers then talk to potential customers through their CRM systems and consumers can talk to dealers through the eBay Motors' platform. Ebay says dealers can add additional packages and features, such as eBay Motors Local Market, a subscription-based service wherein dealers can upload their used-car lot (CPO and non) to local area buyers or list specific inventory units.

Chrysler, which has its own CPO Web site at brandspankinused.com, limits its CPO volume to 2003 through 2008 model vehicles with fewer than 65,000 miles. The cars have to pass a 125-point mechanical, safety and condition standard inspection, which is typical of CPO vehicles. Automakers typically offer warranty coverage for CPO cars and trucks. Chrysler backs its CPO vehicles with an eight-year, 80,000-mile powertrain warranty, and full roadside assistance with a $35-per-day rental car allowance, among other things.

Virtually every automaker spanning the range of market segments has a CPO program. Chrysler says its CPO sales have set sales records every year since its 2002 launch. The company posted CPO sales of 122,000 units last year, a 5% increase versus the year before. The Auburn Hills, Mich.-based company posted a 13% increase in CPO sales in May, with year-to-date sales up 8%.