Shopper Insights
2016 Autotrader CPO Study
Monday November 6, 2017
Article Highlights
- CPO vehicles sell an average of five days faster than non-CPO used vehicles, resulting in 20% more turns per year. While certifying a vehicle is an investment for dealers, it can pay off in increased margins and customer loyalty.
- While the peace of mind offered by CPO is important to shoppers, inventory selection – and whether or not the particular make/model is right for them – is the top priority for consumers. Dealership sales tactics should start with make, model, year, and style as opposed to New, Used or CPO.
- CPO vehicles are also a powerful tool for reaching Millennials, who place a higher value on CPO compared to other age groups. Dealers can use features like extended warranties and technology as a selling point as Millennials are willing to pay more for these types of features.
Certified Pre-Owned (CPO) sales are on the rise and the pace is projected to increase. Of the 22.7 million consumers in the market, 3 million are interested in a CPO vehicle. That could rise to 5.2 million by 2020 with the right education and sales approach.
ABOUT THIS STUDY
To understand shopper perceptions of CPO vehicles as well as the CPO ownership experience, Autotrader conducted two quantitative online surveys, which together comprise the 2016 Autotrader CPO Study. For the shopper portion of the study, Autotrader completed a total of 436 interviews among shoppers, split among 138 New, 150 Used and 148 CPO considerers who were planning to purchase a vehicle in the next 6 months. To understand the CPO ownership experience, Autotrader surveyed 907 current CPO owners (and 116 Used owners for comparison).
2016 CPO Study
See the full study and learn how to take full advantage of growing consumer demand for CPO vehicles, especially among millennials.
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