Executive Automotive Analyst
NADA Used Car Guide
Certified pre-owned (CPO) vehicle vehicle sales should see real growth in next few years with demand and supply moving solidly in right direction. Manufacturers will likely need to enhance marketing efforts to clearly outline to consumers all that certification entails. Consumers are becoming more confident in CPO reconditioning, extended warranties, and vehicle condition.
CPO Demand Increasing Sharply in Past 2 Years at Opportune Time for OEMs:
Late model supply – the primary pool for CPO vehicles – finally started growing again in 2013.
Consumer Unfamiliarity Explains Why Many Shoppers Are Unwilling to Pay Premium for CPO:
While 62% of new car shippers are willing to pay premium, only 34% of used car shoppers are willing.
CPO Sales Account for 13% of All Used Vehicle Sales at Franchised Dealers:
Shows there’s huge potential going forward, but needs consumer CPO familiarity.