Certified pre-owned sales continue adding to their record sales months – it was the strongest August ever for the CPO market, according to Autodata Corp. For the NADA Used Car Guide, it’s become sizable and significant enough to add this data for every qualified vehicle to its monthly printed and electronic editions.
NADA estimates the CPO value by analyzing the sales records of both certified and non-certified vehicles. The analysis of the data is based on key drivers, such as vehicle age, individual CPO program requirements of multi-point inspections, depreciation rates, warranty extension, age and mileage.
CPO sales make for a larger percentage of retail sales of late-model used vehicles than ever before. According to the NADA Used Car Guide, manufacturer CPO programs add value to a vehicle since mandatory inspection and extended warranties reduce the risk for used-vehicle buyers.
“NADA’s CPO values will provide lenders with underwriting guidance for consumer loans associated with the growing number of used vehicles sold through manufacturer CPO programs,” said Mike Stanton, vice president and chief operating officer of the NADA Used Car Guide.