It wasn’t long ago that automakers and dealers wondered if certified pre-owned (CPO) vehicle sales would take off, with car shoppers being willing to pay more than for that same non-certified used vehicle on their dealer lots. There was also concern about the vehicle safety and reliability inspection being accurate and trustworthy. The latest report for Autodata shows that car shoppers are becoming more confident with the CPO process and the vehicles that they purchase.
Last year was the fourth consecutive best-ever year for CPO sales, while December 2014 was the best December ever and the fourth quarter of last year reached the highest ever in quarterly sales. There were 2.34 million in CPO sales last year, which was up nearly 11% over 2013; December saw 200,671 CPO units moved in December – 17.2% over December 2013. Sixteen automotive brands reported their best year-ever in CPO sales during 2014: Audi, Chrysler, Fiat, Ford, Hyundai, Infiniti, Kia, Land Rover, Lexus, Mazda, Maserati, Mercedes-Benz, Mini, Nissan, Porsche, and Subaru.
CPO sales have helped franchised dealers build their used vehicle operations in recent years. When you talk to dealers, they always mention the challenges and opportunities of working with internet-savvy car shoppers these days. One resource that’s helping them post these record sales is CARFAX. In fact, over 90% of OEM-certified vehicles come with a CARFAX Vehicle History Report. That gives car buyers added peace of mind and builds their confidence. An additional benefit for the dealers of 31 OEM Certified Pre-Owned Programs, including Ford, Toyota, Nissan and Hyundai, is that those OEMs have partnered with CARFAX to ensure that every CPO unit is listed on CARFAX® Used Car Listings™.
As was reported in Used Car Market Reports’ reader survey last month, dealers are interested in used car listing services but shared that it’s becoming a challenging sales channel for dealers to manage. Dealers understand that used car listing sources have become a growing and increasingly important channel for remarketing, but the profit margin on these transactions need to make it worthwhile. CARFAX® Used Car Listings™ quickly connect customers looking to buy and dealers looking to sell.