Grow a Travel Company with Certified Pre-Owned Cars


Travel and tourism is one of today's highest-performing industries. In a report by the UN agency, the World Tourism Organization, it shows that the number of international tourist arrivals around the world was around 1.4 billion in 2018. This is an astonishingly high number — a six percent increase from 2017, which is expected to improve further in 2019 and the coming years.

It's no surprise that travel businesses have increased as well, with more and more business-minded folks hoping to cash in on this development. Research reveals that in Asia, where travel is quite affordable, there has been a boom in startups that are solely focused on catering to tourists.

These startups work to cover most of the basic needs of tourists of all ages, one of which being comfortable transportation. Despite the adequate modes of public transportation available, a lot of tourists require private vehicles especially for airport transfers during inconvenient hours of the day.

To supply private vehicles to tourists, travel agencies and tour companies invest in cars to be used as shuttles. However, to grow a fleet much faster to serve as many clients as possible, auto industry experts advise recommend that travel companies purchase CPO or certified pre-owned vehicles for sale instead of brand new cars.

Advantages of Certified Pre-Owned Cars for Travel Companies

1. They are more affordable.

Price is definitely a major draw factor. CPO vehicles are kinder to the budget, considering how well-maintained they are. Therefore, you can expect your fleet budget to go a much longer way, especially if you want to offer a more extensive selection of vehicles to clients.


In addition, when you purchase CPO cars for your business, you do not have to pay for high sales taxes.

2. Customization will not be a problem.

Quite often, when you buy a car that is brand new, the sale contract includes an agreement between the buyer and the dealership to allow the latter to perform customizations. Otherwise, the warranty will become void.

You do not deal with such a strict condition with CPO vehicles. Thus, should you choose to deck out the car to cater to your business clients more accurately, there should not be any problem or considerations to prevent you from doing as you wish.

3. Maintenance is easier.

Premium locations for buying certified pre-owned vehicles often have their own service center with brand specialists which are responsible for the upkeep of the vehicle prior to the sale.

This essentially means that your business will automatically have a reliable service center to turn to make sure that your fleet is always in tip-top shape. Not only that, your travel company gains direct access to a full suite of services from the center that can ensure the reputation of your operations. One of the vital services for CPO cars is emergency or roadside assistance, which can quickly come to the car’s (and client’s) rescue in the event of a highly inconvenient breakdown.

4. You can choose your own auto insurance provider.

Typically, when you buy a brand new car at a promo, the vehicle comes with free one-year car insurance. There's usually no negotiating around that because the cost of that insurance has already been worked into the sale price.

You will find that such auto insurance plans have extensive coverage, but some of the featured services may not even be that useful to the business. You can easily avoid this insurance trap if you opt for a CPO vehicle, for which you can choose a more appropriate auto insurance plan.

5. There's a better resale value for CPO cars than for brand new ones.

There's not a big difference between the original sale price of a CPO car and its resale value. The same cannot be said for a vehicle that you buy brand new. The resale value can drop to as much as 60 percent of its original price, even with proper maintenance.

From a practical point of view, the resale value of a new car is undoubtedly more disappointing than that of a certified pre-owned vehicle.

6. You can get a better car.

Due to the lower sale price of certified pre-owned vehicles, you can actually buy much nicer models with your budget. For the full cost of a D-Segment car, you may be able to afford a CPO  luxury vehicle such as a BMW or Mercedes-Benz.

If you think about it, a well-maintained but older luxury vehicle model will always be better for marketing than a brand-spanking new economy car. This is something to factor in because if you have a luxury European vehicle in your fleet, you can attract those tourists who enjoy traveling in style, and not just with convenience.

Find a Trustworthy Dealership for CPO Cars

Now that you know the many benefits of opting for CPO cars for your travel company, the next thing you need to consider is the dealership. There aren't many dealerships for CPO vehicles, and not all are created the same.

Make sure to study all your options and make a comparison of the complete services these dealerships provide buyers with.

First, explore their financing solutions. You will find that some dealerships offer lower-interest financing.

Second, look into their promos. Dealerships set themselves apart from the competition through their provision of smarter deals. Compare such provisions. These are, after all, proof of the dealership's commitment to service. If a dealership does not offer perks for buyers, this should make you think about whether its operations are customer-centered, which should be the case for all businesses.

And third, explore the full range of services the dealership provides. It will serve your travel company well if the dealership you're buying cars for your fleet from has services to ensure your convenience. A 24/7 service center will be a huge advantage for your operations, especially if it performs not only  repairs and replacements but upgrades as well.

Attain Travel Business Success

The thriving tourism and travel industry opens doors to all kinds of business. To keep moving forward to great success, all players in the industry must come up with smart and practical methods for providing services. Travel companies investing in high-quality certified pre-owned vehicles is just one idea.


Mahesh Rohra is the Managing Director of certified Pre-Owned Multi Brand Car Sales & Service, AWR Strategic Ventures, Part of the AW Rostamani Automotive Group, a trailblazer in the automotive fraternity with a legacy of over 50 years. AUTOTRUST is the strategic arm business vertical through which the group had diversified into certified Multibrand Car Sales and Aftersales Service Center Network, offering a one stop shop solution for all automotive requirements. AUTOTRUST offers solutions to buy & sell cars, Agency standard Car Service and Maintenance, car rentals and much more.