Volvo CE aims for industry’s highest life cycle values with Volvo Certified Used centre
Volvo Construction Equipment (Volvo CE) has a new strategy for increasing the life cycle value of its machines, and is leveraging the expertise of its dealer network to take the "guess work" out of buying used equipment. The company is partnering with its dealers to establish Volvo Certified Used centers in North America that will offer Volvo Certified Used and Volvo Certified Engine Ready equipment.
The first dealer partner to sign on to Volvo CE's new Certified Used program is Arnold Machinery Company (Arnold). Arnold, an experienced, long-time Volvo CE dealer, opened its new Volvo Certified Used center facility in Las Vegas, Nevada, in April. The company was chosen because of its engagement in used equipment, for the proximity of its location to airports and highways, and for its potential growth.
For Volvo CE and its dealers, the move reflects a larger business strategy to increase the machines' value throughout the life cycle by growing their residual value on the used market. In essence, the equipment is worth more if it has been inspected and/or certified with the OEM's involvement. It gives Volvo CE and its dealer network another touch point to communicate with its customers and foster long-term relationships. The strategy also enables Volvo CE to gain more control over the life cycle of its products, as the Volvo Certified Used centres will feature reconditioning facilities in which dealers will perform the work themselves.
"Volvo CE and its dealer network are staking a claim. We want to provide the construction industry's highest life cycle values," explained Stephen Roy, president of Volvo CE Americas. "That begins with making efficient and reliable equipment that is backed by superior aftermarket support from a great dealer network. Our new Volvo Certified Used program will extend this value proposition into the second life of machines, when they enter the used market, enabling us to leverage our OEM and dealer network expertise to raise machine values and offer an alternative to the auction market."
For customers, the benefit is clear: They can purchase machines with full knowledge of the machine's condition from trusted dealers they know and rely on (as opposed to the nature of many auction purchases, where "as-is" often contain surprises). If there are any issues with the equipment, customers can return to the OEM-appointed dealer for service.
Logan Ormond, used equipment manager at Arnold, said the company was excited to partner with Volvo CE for its new Volvo Certified Used Center in Las Vegas, and that through a vigorous inspection and certification process, it could bring used equipment to the market that is second-to-none.
"There is a sense of security that comes from buying a machine that has been fully evaluated and certified. Customers will know that their used machines have been cared for and they will have more confidence in how the equipment will perform in the future," Ormond explained. "With our Volvo Certified Technicians, we will scrutinize each machine and ensure it fits the strict certification requirements for the program. We see this is as one of the fastest-growing segments of the construction equipment market and we want to lead the charge in helping to provide the highest machine life cycles available."
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