Certified pre-owned (CPO) sales set a record in 2018, and another stellar year is expected in 2019.
CPO sales in 2018 hit 2.70 million vehicles, up 2.1% from 2017, matching Cox Automotive’s forecast. The new high represents the eighth straight year of record-breaking CPO sales. The Cox Automotive forecast for 2019 CPO sales is 2.75 million vehicles as the market looks to set another record.
The CPO market has grown due to favorable used-vehicle demand and robust off-lease supply. Overall used vehicle sales had the best year of the economic expansion in 2018 thanks to consumer demand in this part of the market. Not only are off-lease maturities growing to provide ample supply to meet that demand, the supply is shifting to more light trucks, vehicles that are in strong demand by consumers.
Cox Automotive estimates that lease maturities grew 11% in 2018 from 2017, reaching 3.85 million units. Looking ahead to 2019, Cox Automotive forecasts that lease maturities will peak at 4.08 million units, for growth of 6% from the estimated maturities in 2018. With continued robust demand and supply, the CPO market should see gains for 2019.
The CPO market is top-heavy with a few brands accounting for the majority of sales. Toyota is the largest player in the CPO market and accounted for 13% of all CPO sales in 2018. Toyota along with Honda, Chevy, Ford and Nissan account for 48 percent of total industry CPO sales. Look for that to change as brands like Jeep, Volkswagen and Mazda make gains in CPO sales and increase their share of this market.