Carmakers like American Honda Motor Co. and General Motors do monitor dealerships over their certified used-vehicle programs and would even suspend them if needed. Brian Butts, manager of auto remarketing at American Honda, and Larry Pryg, national manager of GM Certified used operations, told Automotive News that most of their dealerships conduct their used-vehicles programs properly.
They also confirmed that dealership who failed to do so get temporarily suspended from the programs, noting that it is all about maintaining the programs' integrity. Butts remarked that every carmaker wants dealership to properly certify the vehicles, while doing things that are necessary both pre- and post-sale. He noted that the suspensions are partly the reason why American Honda's certified used sales are down this year.
He added the carmaker’s certified used sales are so far down since its off-lease volumes have dropped – no thanks to production cuts made in 2011 following the earthquake and tsunami in Japan. Certified used vehicle sales at American Honda fell 7 percent in the first eight months of 2014 to 186,248 units – a contrast to the industry-wide growth of 9 percent in the period.
American Honda is now revamping the certified-used programs for Honda and Acura divisions to pave way for much improved programs this year, Butts disclosed. He said among the changes that will be implemented is how American Honda dealer compliance.
He said that since American Honda cannot visit and check every dealership, it has tapped companies to do that job instead. He said the company is making the move to ensure that dealers are certifying the vehicles properly and documentation is “complete and accurate."
Butts disclosed that dealerships found to have failed in their implementation of the program are suspended for 90 days. These dealerships are required to file written action plans and work with field staff to correct issue if they want be readmitted to the program. [source: automotive news - sub. required]