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Whereas January CPO gross sales are slower than could be anticipated, Cox Automotive remains to be forecasting a robust yr for CPO at 3.0 million models, a rise yr over yr and above the file set in 2019.
Supply: Cox Automotive Evaluation
Licensed pre-owned (CPO) gross sales in January fell to 166,309 models, Cox Automotive reported Feb. 14, wit the full down practically 11% from December’s 186,748 and down practically 17% from January 2021.
January’s CPO result’s the bottom month-to-month complete since April 2020. CPO gross sales have been in decline since having sturdy gross sales in Q2 and Q3 of 2021.
With file numbers of lease-holders selecting to maintain, slightly than return, their leased autos, the pool of accessible CPO-eligible stock is decrease than standard. In the meantime, with excessive wholesale values, and prices required to place a CPO badge on a automobile, these are among the highest-priced used autos obtainable, which could be crimping CPO gross sales exercise.
“Used automobile demand is robust proper now, so many sellers have determined they don’t have to push the CPO program to propel gross sales,” mentioned Brian Finkelmeyer, senior director of new-car options of Cox Automotive. “Plus, used automobile values are sky-high, so there may be not numerous ‘room’ left within the deal. To carry costs down, sellers are foregoing the CPO course of.”
Whereas January CPO gross sales are slower than could be anticipated, Cox Automotive remains to be forecasting a robust yr for CPO at three million models, a rise yr over yr and above the file set in 2019. This forecast is supported by what is anticipated to be a file tax refund season and the attractiveness of licensed pre-owned autos to shoppers needing like-new autos.
Initially posted on Vehicle Remarketing
