February CPO Sales Increase By Double Digits – Remarketing

February’s CPO result is the highest since October 2021 and interrupts a six-month downward trend. - Source: Cox Automotive

February’s CPO result’s the best since October 2021 and interrupts a six-month downward pattern.

Supply: Cox Automotive

Licensed pre-owned (CPO) gross sales in February rose to 191,860 models, up 15.3% from January’s 166,309, however down practically 8.5% from February 2021, Cox Automotive reported March 11.

February’s CPO result’s the best since October 2021 and interrupts a six-month downward pattern. CPO gross sales have been in decline since having sturdy gross sales in Q2 and Q3 of 2021.

New-Car Customers Flip Into CPO Consumers

In 2021, the variety of CPO patrons who had been solely looking for a brand new car firstly of their buy journey elevated by 226%, based on findings from the 2021 Cox Automotive Automotive Purchaser Journey Research. Regardless of stock frustrations, sellers delivered an excellent buyer expertise with 76% of CPO patrons indicating they had been extremely happy with their general expertise on the dealership/retailer the place they bought their car.

Consumers determine 5 core values that affect their choice to purchase an authorized pre-owned car:

A CPO car provides me peace of thoughts – 53percentI belief CPO sellers greater than I belief used-vehicle sellers – 41percentA CPO car is a greater worth than a brand new car – 38percentCPO permits me to purchase a luxurious car in my worth vary – 35percentCPO autos permit me to “commerce up” or improve my present car – 25%

“Licensed pre-owned (CPO) packages generally is a great way for customers to bridge the hole between new and used autos,” mentioned Brian Moody, government editor, Autotrader. “Many patrons need the safety of a brand new automotive and the accompanying guarantee however have been priced out of the market in sure segments. Used vehicles are sometimes extra inexpensive however lack the understanding of a brand new automotive guarantee. CPO autos provide the perfect of each worlds, usually with new automotive financing charges and warranties that stretch as much as 100,000 miles.”

A latest Autotrader article highlights a number of the greatest CPO offers on 2017-2021 fashions. Many automakers provide offers and incentives to assist entice patrons to their CPO packages – starting from 0.99% APR financing for 36 months to 1.9% financing for 60 months.

Cox Automotive is forecasting a robust yr for CPO at three million models, a rise yr over yr and above the document set in 2019. This forecast is supported by what is anticipated to be a document tax refund season and the attractiveness of licensed pre-owned autos to customers needing like-new autos.

Initially posted on Vehicle Remarketing

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