News Coverage
Another CPO sales record this year?
Monday February 25, 2019
Article Highlights
- New-vehicle transaction prices have been going up, and interest rates have been on a steady climb following the Great Recession. These affordability issues appear to be nudging more buyers into used cars and trucks.
- But Zo Rahim, research manager, Cox Automotive, said that product mix is also becoming more favorable to American consumers on the used side, including for CPO vehicles, as more light trucks — especially crossovers — come back off lease.
- Rahim noted that while Toyota, Honda and Chevrolet have been dominating CPO sales, brands with favorable product mixes for CUVs and SUVs, such as Jeep, appear to be grabbing market share.
Automotive News, Feb. 25, 2019 — Certified pre-owned vehicle sales topped 2.7 million units last year, a rise of 2.1 percent over 2017, according to the Automotive News Data Center. It marked an eighth-straight year of record sales.
Zo Rahim, research manager for Cox Automotive, sees 2019 as potentially a ninth record-breaking year: Cox is forecasting sales of 2.75 million units.
What’s driving the growth?
“For CPO sales over the last eight years, going on nine years this year, it’s favorable supply as well as strong used retail demand,” Rahim said.