Certified pre-owned vehicle sales topped 2.2 million units in October and remain on pace to eclipse 2.7 million units for the year.
The 2.2 million CPO units sold is 8 percent ahead of 2022, according to data from Cox Automotive.
“Strength in sales this year has been driven by a few factors, one being a lower price for a similar late model vehicle compared to new prices,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive. “While we’ve yet to get full confirmation, the expanded eligibility criteria that some OEMs put into the market, including a few for other-branded makes, likely led to more consumer options as well, including more affordable units with a bit more miles and age than typical off-lease, CPO inventory.”
After strong sales in the first nine months of the year, CPO sales were down slightly in October year-over-year, 0.2 percent. October finished with 207,189 units sold. It was approximately 23,000 vehicles behind September.
“Despite the month-over-month decline in October, year-to-date CPO sales remain on track to hit our 2.7 million full-year forecast,” noted Frey.
CPO sales are expected to remain strong heading into 2024, though market conditions could have some impact.
“We are anticipating a similar level of CPO sales in the year ahead, but growth in the used market is expected to be somewhat slower than in 2023,” Frey said. “Lingering high-interest rates, stubborn elevated used vehicle prices, and a continued shortage of supply look to keep a lid on CPO action through 2024.”
NIADA offers Certified 360 to help independent dealers take advantage of the CPO market and compete with the franchise dealers’ programs.
“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 dealers developed the program specifically for independent automobile dealers. They worked closely with top administrators in the industry AUL, GWC Warranty, ProGuard and Southwest Dealer Services. NIADA also partnered with Carketa to provide a complete digital 200-point inspection to help dealers streamline their inspection process.
“We signed up for the CPO 360 program because the inspection is more detailed for the customer and we can sell it for a better amount,” said Guillermo Leon, head of customer service at Bahia Auto Sales in Chula Vista, Calif.
“If there was a dealer who was sitting next to me right now, I’d tell him to do it!”
The program is easy to implement and affordable. The NIADA Certified 360 covers vehicles up to 10 years old with up to 125,000 miles, offering three options with different 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 to connect with an administrator, visit niada.com/certified-360.