Certified pre-owned sales continue to be a strength in the used vehicle market.
In June, CPO sales were up more than 17,000 vehicles, 8.4 percent, from the same month in 2022, according to a new report from Cox Automotive. CPO sales were up 2 percent or 4,000 vehicles from May.
Through the first six months of the year, CPO sales are running 6.4 percent ahead of 2022, with an additional 78,000 vehicles sold.
“One area of strength in the used-vehicle market is certified pre-owned,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive in a news release. “Interestingly, certified pre-owned loans saw the most loosening of all loan types in June on a month-over-month basis, according to the Dealertrack Credit Availability Index. For consumers with good credit that are struggling to afford a new vehicle, CPO is an excellent alternative. Buyers can get a nearly new vehicle at a much better interest rate than they can get in the used market.”
CPO sales were running ahead of the total used sales, which were up 2.8 percent in June. CPO sales are expected to get another bump later in the year.
“For the most part, we are expecting CPO sales to track somewhat closely to 2022, with an increase in sales starting in October to finish the year at 2.6 million overall,” Frey noted.
Several dealers around the nation are taking advantage of the CPO market, utilizing NIADA’s Certified 360.
NIADA launched in January Certified 360 in January to give independent dealers a program to compete with franchise dealers. 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.
