Certified pre-owned sales continue to remain strong.
CPO sales were up 5.4 percent, more than 11,000 units, in May compared to May 2022. According to data from Cox Automotive, CPO sales tallied 219,633.
Through the first five months of the year, CPO sales are up 6 percent, 61,000 units, from the start of 2022.
“CPO sales usually experience a significant surge from January to May, with a sharp increase in sales during the spring selling season,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive. “However, this year’s increase has been less dramatic than we usually see. The gain in sales has been modest so far, and the volume changes from month to month have been the least volatile since 2019.”
Frey did caution a lack of inventory and high prices could hold down CPO sales.
“While CPO outperformed total and retail used-vehicle sales in May, CPO sales are most likely muted due to continued high prices, declining credit availability and high interest rates,” Frey noted. “In fact, CPO loans saw the most tightening in May both month over month and year over year, according to the Dealertrack Credit Availability Index.”
Total used vehicle sales are down near 3.1 million units in May, 3.4 percent year over year.
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.