Certified pre-owned (CPO) sales in November increased by nearly 17,000 for the same month in 2021, according to a new report from Cox Automotive Tuesday.
While showing a large increase from November 2021, the sales still lag behind for the year, down 318,000 or 12.4 percent.
Cox Automotive expects CPO sales to finish near 2.45 million for 2022, an 11 percent decline from 2021.
From October, sales were down 4.4 percent.
Used retail vehicle sales have been challenged throughout 2022 by COVID, inflation and increasing interest rates. Higher interest rates have been the principal cause of the slowing in sales. Interest rates for used loans have increased more than 3 percentage points, pushing payments 12 percent higher.
Consumers benefit from average interest rates on certified units being more than 2 percentage points lower than average used loan rates. According to the Dealertrack Credit Availability Index, on a year-over-year basis, most channels were little changed in November regarding credit access except used loans through franchised dealers and certified pre-owned (CPO) loans having loosened the most.
Independent dealers will finally have a program built by them, for them, come Jan. 3, with NIADA’s CPO program.
“Current year-to-date CPO sales hit 2.24 million at November’s end. To match or exceed our call of 2.4 million, CPO sales would have to be 160,000 or more,” said Chris Frey, senior manager of economic and industry insights at Cox Automotive. “The last time they were at or below this level was in the March to April 2020 selling period. Given the sales pace this year and barring any major impacts from interest rates or other unforeseen events, we should hit our target and then some.”
On Jan. 3, NIADA will begin offering big help independent dealers compete against the franchise CPO programs, provide an excellent customer ownership experience, and capitalize on the CPO market with its own program. Independent dealers will finally have a program built by them and for them.