After a strong start to the year, certified pre-owned vehicle sales took a step back in April.
CPO sales were down 4.2 percent or 9,000 vehicles from April 2022, according to data from Cox Automotive. April’s estimated 214,684 CPO sales were down 6 percent or 15,000 vehicles from March. Through March, CPO sales were up 10 percent, 59,000 units, compared to the first three months of 2022.
“April CPO sales took it on the chin compared to March, but the pace was healthier than either January or February,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive in the report. “The current year-to-date sales pace of 213,000 is about 7,500 better than last year, but it’s also down by 21,000 from the pre-pandemic monthly average.”
High interest rates, above 12 percent, and low inventory, less than a 45 day supply of used vehicles, contributed to the lagging CPO sales.
“Higher interest rates and the looming concerns of a recession likely contributed to the CPO sales decline, with buyers pulling back from last month,” Frey said. “We still think the strategy shift mentioned last month will pay off, with older units entering the mix, but after April’s sales decline from March, it looks to be a bit longer before we see sustained sales improvement from the larger pool of CPO-eligible units.”
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. 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 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.
