Certified pre-owned sales took off in January.
According to a Cox Automotive report analyzing Motor Intelligence data, CPO sales were up 36,000 or 21.5 percent in January compared to the same month in 2022. A total of 202,074 CPO vehicles were sold last month.
The uptick in CPO sales was noted, while used retail sales in the month were anticipated to be down 7.5 percent.
“We have seen some automakers – such as Ford, Honda and Nissan – expand their CPO programs to include 9-and-10-year-old vehicles,” said Chris Frey, senior manager of economic and industry insights at Cox Automotive. “Plus, Ford offers 84-month loans for certified vehicles up to three years old. The strong January CPO numbers may be reflecting these CPO program changes, which improve options for consumers as the pool of gently used vehicles shrinks.”
The strong January numbers were down from December, when approximately 225,000 CPO vehicles were sold.
In 2022, CPO sales finished with 2.47 million units sold. It was a 10.2 percent decline from 2021.
Cox Automotive predicts limited inventory of CPO units to hold back CPO sales in 2023.
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.