February CPO Sales Increase By Double Digits Month Over Month

Certified pre-owned (CPO) sales in February rose to 191,860 units. This total is up 15.3% from January’s 166,309, but down nearly 8.5% from February 2021. February’s CPO result is the highest since October 2021 and interrupts a six-month downward trend. CPO sales have been in decline since having strong sales in Q2 and Q3 of 2021.

February 2022 CPO Sales

NEW-VEHICLE SHOPPERS TURN INTO CPO BUYERS

In 2021, the number of CPO buyers who were only shopping for a new vehicle at the start of their purchase journey increased by 226%, according to findings from the 2021 Cox Automotive Car Buyer Journey Study¹. Despite inventory frustrations, dealers delivered a great customer experience with 76% of CPO buyers indicating they were highly satisfied with their overall experience at the dealership/retailer where they purchased their vehicle.

Buyers identify five core values² that influence their decision to buy a certified pre-owned vehicle:

1. A CPO vehicle offers me peace of mind – 53%
2. I trust CPO dealers more than I trust used-vehicle dealers – 41%
3. A CPO vehicle is a better value than a new vehicle – 38%
4. CPO allows me to buy a luxury vehicle in my price range – 35%
5. CPO vehicles allow me to “trade up” or upgrade my current vehicle – 25%

“Certified pre-owned (CPO) programs can be a good way for consumers to bridge the gap between new and used vehicles,” said Brian Moody, executive editor, Autotrader. “Many shoppers want the security of a new car and the accompanying warranty but have been priced out of the market in certain segments. Used cars are often more affordable but lack the certainty of a new car warranty. CPO vehicles offer the best of both worlds, often with new car financing rates and warranties that extend up to 100,000 miles.”

A recent Autotrader article highlights some of the best CPO deals on 2017-2021 models. Many automakers offer deals and incentives to help attract buyers to their CPO programs – ranging from 0.99% APR financing for 36 months to 1.9% financing for 60 months.

Cox Automotive is forecasting a strong year for CPO at 3.0 million units, an increase year over year and above the record set in 2019. This forecast is supported by what is expected to be a record tax refund season and the attractiveness of certified pre-owned vehicles to consumers desiring like-new vehicles.

¹Cox Automotive Car Buyer Journey Study – CPO is based on an online survey of 896 U.S. consumers who purchased or leased a used vehicle – 478 CPO buyers and 418 used non-CPO buyers – within the past five years. This extensive study was conducted between August 5, 2021, to September 3, 2021.

²Cox Automotive CPO Quick Poll, October 2021.