We've reinvented NIADA CPO from the ground up.

Introducing NIADA CPO 3.0

Overview

NIADA Certified 360 will be the first certification program of its kind. The program features multiple Administrators to give all independent dealers options to get into the program. We have five retail administrators on the front side of the program. GWC Warranty, ProGuard, GSFS Group, Southwest Dealer Services and AUL. In the sixth spot will be reinsurance companies for dealers that do reinsurance and any other administrators that meet the criteria set by NIADA. We have designed this program to be like an umbrella for the administrators.

The program features a digital vehicle inspection platform that can be linked to a dealer’s retail listings, showing what was done to the vehicle and items checked during the inspection process. The transparency of the inspection is what will separate this program from others. Any dealer found to be falsifying inspection reports will be identified and removed from the program.

The qualification for the program involves training by NIADA to certify dealers on best practices to ensure the integrity of the program. The digital inspection is mandatory, as well as training by the administrators. The dealers will also have to sign the NIADA Code of Ethics and hold current membership to their state affiliation and NIADA.

The dealer will need to fill out a checklist stating who will be doing their inspections. They have two choices for the inspection. The dealerships service department or an outside service facility.

A checklist to show who the dealer is using for vehicle history reports, the terms of the certification they will be offering as well as dates of completion of all the above training will need to be signed off by the dealer principle before the dealer is activated on the program.

The second phase of the program is to develop a network of NIADA certified shops across the country. These shops will be able to do the digital inspection, certification and repairs for our dealers who do not have Repair facilities. They will also be available for warranty work in any state in the country. We have an agreement in place with Advance/Carquest to convert their Tech net shops with over 15,000 locations across the country to NIADA Certified shops. We are overlapping the member list to see how many of these shops will have to become members to convert over to NIADA Certified repair facilities. These shops will have immediate access to CARQUEST’s extensive training for technicians. These shops can also join Carfax for reporting the repairs to the vehicle’s history report. Once these shops are trained by Carketa on the certification process, they will have the ability to sell service contracts to their own customers as well, as long as the vehicle passes the Carketa inspection.

This is an additional profit center for our dealers. With four divisions, Advance Auto, Carquest , World PAC and Auto Parts International. Our NIADA dealers will have access to the parts and service they need to properly recondition their vehicles at a discounted cost.

In the third phase of the program, we will have a retail marketing portal. The dealer can elect to list all their inventory on this site. The site will be only NIADA Certified or VIP vehicles. Linked to this site will be a list of all NIADA Certified shops for warranty repairs. The site will also have a link for a quote on transportation and financing. The dealers will also have the ability to deliver a vehicle, registered and titled in all 50 states. This will help them compete with other online platforms, like Carvana and Zoom. The transport vendor will shop the transport job and make sure the transporter is licensed and insured.

In addition, we are in talks with major lenders to serve as finance sources for our CPO dealers, a huge benefit for our smaller dealers.

Our deadline to get Phase two and three up and running is our national convention in June 2022.

Our two programs:

CPO Program Guidelines

  • Mandatory virtual training with sign off after completion
  • Digital Inspection
  • 10 model years or newer
  • 125,000 miles or less
  • No more than 1 minor accident on a vehicle history report
  • Option of 3 month/3,000-mile warranty, 6 month/6,000-mile warranty, 12 month/12,000-mile warranty

VIP Program Guidelines

  • Mandatory virtual training with sign off after completion
  • Manual checklist/inspection
  • 12 model years or newer
  • 150,000 miles or less
  • Minor accidents acceptable
  • 3 months/3,000-mile warranty

The best part of the program is the royalty share for our state affiliates. The states that opt into the program will receive $5.00 per CPO/VIP sold and $10.00 per service contract sold. To give you a better idea of how much that is, at the height of CPO 2.0 in New York and New Jersey, the royalty back to the state affiliate would have been $150,000.00. This program promises to be substantially larger and not only helps with extra cash flow for the state, but the members that will be signed up should be substantial.

Keep in mind this time around, the program was designed by dealers on the committee to solve issues we have every day. There will also be a wholesale vehicle exchange program for our members that are in this program. With the current vehicle shortage this will help.

Any questions can be directed to the chairman of the CPO committee.

Lou Tedeschi
781-953-5452
aspided@gmail.com