Data Point
CPO Sales Continue to Grow
Wednesday April 17, 2019
Article Highlights
- New-vehicle prices are at record highs and interest rates are at 8-year highs.
- Sales of certified pre-owned vehicles increased to 265,878, up 0.4% in Q1 2019 compared to the same time period for 2018.
- The CPO market is primed to continue its growth heading into the spring selling season.
Affordability pressures generally benefit the used market and strengthen demand as a result of buyers being priced out of the new market. New-vehicle prices are at record highs and interest rates are at 8-year highs. Perhaps this is one of the reasons that we saw sales of certified pre-owned vehicles increase to 677,038, up 0.4% in Q1 2019 compared to the same time period for 2018. This is in stark contrast to the weakness we have seen with new retail vehicle sales, which were down 4% for the quarter.
As the used-vehicle market continues to see strong consumer demand with favorable supply of off-lease units coming to market, the CPO market is primed to continue its growth heading into the spring selling season.