Sales of certified pre-owned vehicles continued rise throughout February.
According to new numbers from Cox Automotive, CPO sales increased nearly 2 percent from January, with an additional 3,900 units sold. A total of 205,946 CPO vehicles were sold in February, an increase of 7.3 percent from February 2022, with an additional 14,000 units moved.
The CPO numbers to start 2023 are exceeding forecasts.
“Our initial forecast was for CPO sales to fall a bit this year, but the numbers are not supporting that drop. CPO sales are up nearly 14 percent, meaning almost 50,000 more CPO units have been sold in the first two months of the year compared to the same time in 2022,” said Charlie Chesbrough, senior director of economic and industry insights at Cox Automotive. “With younger off-lease units in short supply, automakers are expanding their CPO programs to include older vehicles. As a result, the CPO sales pace so far this year is running hotter than expected.”
To compete with the franchise dealers’ programs, NIADA launched in January CPO 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.
“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 CPO 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 360 Program and connect with an administrator, visit niada.com/certified-360.