CTV is your turnkey loyalty program.
Small investment, big return.

Everything you need to know about the program is in the FAQ below. Contact us today with any questions.

The growth in the popularity of extended term vehicle loans (ETL) has been beneficial to sustaining continued growth in car sales over the last few years.  Dealers facing diminishing profit margins have witnessed a growth in sales thanks to the growing popularity of ETLs.  Consumers have taken to using extended term financing to keep monthly payments low or upgrade their vehicle while keeping monthly costs steady.

But extending vehicle loans has started to create a new challenge for all concerned:

  • Negative equity for consumers
  • Longer delays between sales for dealers
  • Lower return and higher risk for lenders

While ETLs have generated a positive impact for dealers in the short term, they also come at the expense of keeping consumers out of the market for longer periods of time.  This negative impact over time could have far more dire consequences for dealers than any benefit generated by ETLs.

Retention has always been a challenge for dealers. ETLs have created a new barrier to retention by impacting the sales cycle. Whereas in the past, with loans averaging 5 years, dealers could routinely count on customers to break their loans after 4 years, with the average loan term now exceeding 6 years, dealers are facing longer wait times between consumer purchases. Needless to say, dealers can ill afford the potential drop in sales which the increased wait times represent.

In addition to creating an important revenue stream for dealers, aftermarket programs are often touted as creating dealer retention. However, such retention is dependent on the occurrence of a fortuitous and often rare event. Thus, extended warranty and replacement insurance and to a lesser extent GAP, will only bring business to the dealer if the customer’s vehicle suffers a mechanical breakdown or total loss.

Retention-driven products that have proven popular with dealers include:

  • Extended warranties/service contracts
  • Replacement insurance (QC and BC)
  • Tire warranty
  • Dent and ding
  • Prepaid maintenance

These programs are designed to protect an asset, behaving as retention programs only incidentally.  They don’t represent an appropriate response to the challenge created by ETLs. Certainly, the extended warranty and prepaid maintenance do not offer the dealer an opportunity to sell another vehicle.

By contrast, private sales, which is quickly growing in popularity, is a cost-effective alternative to advertising as a way of bringing customers back to the dealership. However, beyond receiving a customized invitation, customers are not provided much in the way of an incentive to return to the dealer to buy their next vehicle before they feel the need to do so.

The Certified Trade-In Value (CTV) is a promise to the customer that should they wish to trade-in their vehicle before the end of their loan or lease, the value of their vehicle, for trade-in purposes, will not be less than the certified trade-in value of the vehicle issued at the time they purchased or leased the vehicle from the dealer. The certified trade-in value is the vehicle’s future value as forecasted by Canadian Black Book (CBB). This certified trade-in value will be available to the customer during the designated trade-in period which commences 30 days prior to the halfway point in the customer’s finance contract.

CTV gives the customer peace of mind that their vehicle will maintain its value in the future should they decide to trade it in prior to the end of their finance term. Better still, the CTV comes at no additional cost to the customer, compliments of as the dealer.

When a customer buys or leases a vehicle from a participating dealer, they will receive a CTV certificate from the dealer.  The CTV certificate identifies a trade-in period during which the customer can trade-in their vehicle at a guaranteed minimum price or CTV.  The trade-in period begins 3 months prior to the halfway point of the vehicle finance term. Immediately prior to the trade-in period, the customer will be contacted and offered a personal invitation to visit the dealer for a private sale in order to take advantage of their CTV certificate. The customer, knowing he/she has a potential benefit under the CTV certificate, is incentivized to return to the dealer for a trade-in.

The CTV program is the ultimate retention program combining elements of a private sale with the value proposition of a warranty product.

Participating dealers would be required to cover their entire qualifying fleet under the CTV program. The low price when compared to aftermarket products and the value proposition which private sale programs lack, make the CTV program highly attractive to dealers.

In an industry where margins are tight, ensuring a customer retention increase of just 5% can make all the difference between a good year and a disastrous one. The CTV program is an investment in the future success of your dealership.

Unlike aftermarket programs, CTV is provided to every customer who purchases or leases a qualifying vehicle from a participating dealer and will only be honoured at the originating dealership. CTV will drive higher numbers of customers back to the dealership than would ever be possible with any other program. The reason is quite simple: when a customer is contacted by the CTV program they will be reminded of the Certified Trade-in Value which they received from the dealer and its potential value. The CTV creates a call to action that customers will find hard to resist.  Compared to a regular private sale, which essentially involves sending out unsolicited invitations and making cold calls, CTV appears to be very attractive value proposition.

CTV is the dealer’s best solution to the retention challenge because:

  • every dealer customer gets a CTV certificate;
  • every dealer customer gets an invitation to come back to the dealer for a trade-in
  • it’s highly cost-effective.

CTV also comes with the household brand recognition of Canadian Black Book, and the financial backing of Northbridge, an A-rated insurance company.

Loyalty is critical to business success but it is often difficult to quantify. Loyalty strategies can be costly and challenging, requiring different dealer departments to work together seamlessly.  CTV is an alternative that allows the dealer to invest in loyalty over time at a modest cost, one customer at a time.  It doesn’t require significant capital outlay or effort. Customers introduced to the CTV program will be automatically solicited to return to the dealer to take advantage of their certified trade-in value. No action on the part of the dealer is required other than to wait for the CTV customers to call or drop in.

The modern dealership is a complex and multifaceted business. Generating loyalty requires expertise, attention and strategies that the average dealership often can’t afford. The CTV program is ideal for dealerships looking for the cutting edge in loyalty solutions.

CTV, your turnkey loyalty program.  Small investment, big return.

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SecurPlus Solutions Inc.

TEL: 418 550-5507


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