Certified pre-owned vehicle sales continue to surge.
CPO sales were up nearly 15 percent in August, more than 12,000 units, compared to August 2022, according to new data from Cox Automotive.
The strong August sales continue the trend from the start of the year. CPO sales are up 8 percent, 134,000 vehicles, through August.
“CPO sales continue at a steadily improving measured pace, outperforming the overall used-vehicle market,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive in a press release. “Monthly sales increases this year have been rising gradually, rather than the sporadic monthly levels of 2019, or even the trepid 2022 monthly sales rates after April.”
Cox Automotive data showed total used vehicle sales were down 8 percent in August.
“CPO sales have shown a lot of resilience given the price and interest rate environment, and that bodes well for the next few months’ sales figures,” Frey said.
Independent dealers looking to capitalize on the strength of CPO sales have an option to compete with the franchise dealers’ programs. NIADA launched in January Certified 360. The CPO program helps independent dealerships increase buyer confidence and their profitability.
“The independent world never had a true CPO program. This is a true CPO limited warranty program,” said NIADA Vice President Jeremy Beck. “It allows the independent dealer to be on par with manufacturers and have a leg up on other independent dealers.”
NIADA developed the program working with the top administrators in the industry AUL, GWC Warranty, ProGuard and Southwest Dealer Services. NIADA also partnered with Carketa to provide a completed digital 200-point inspection to help dealers streamline their inspection process.
“We put together highly respected administrators known for their claims and customer service experience,” Beck said. “They provide a level of confidence for the independent car shopper. These administrators are respected by dealers and known by customers.”
The program is easy to implement and affordable. The NIADA Certified 360 covers vehicles up to 10 years old with up to 125,000, offering three term and mileage offerings:
- 3 months or 3,000 miles for $199
- 6 months or 6,000 miles for $299
- 12 months or 12,000 miles for $399
For information about the NIADA Certified 360 Program and connect with an administrator, visit niada.com/certified-360.