By : Todd Phillips
More shoppers looking to buy a used car are opting for certified pre-owned (CPO) vehicles, with sales hitting an all-time high, according to analysts at Edmunds.com, a popular online destination for car shoppers.
In the company’s latest Used Vehicle Market Report, analysts found that in 2014, CPO sales hit an all-time high of 2.3 million, which is noteworthy because it wasn’t even a record year for used car sales.
That means more buyers are being swayed by the benefits of buying a vehicle that has gone through the rigorous testing and reconditioning programs that are part of a dealership’s CPO program. OEMs have been marketing these programs heavily and it appears to be paying off.
According to Edmunds, CPO sales were 20.8 per cent of total used car sales at franchised dealerships in 2014 — the highest percentage since CPO programs were introduced.
“We fully expect CPO popularity to continue throughout 2015 because many leased cars are being returned to the dealership in excellent shape and lightly used cars are being traded in at faster rates than in previous years,” says Edmunds.com Senior Analyst Jessica Caldwell. “This allows dealers to maintain a large CPO inventory. Car shoppers are finding a great selection to choose from, and, in the current economy, many are comfortable spending a bit more for that extra peace of mind that a CPO car brings.”
Prices are also rising, which is even more good news for dealerships, with the average price for a used vehicle sold at a dealership reaching $16,800 last year compared to $15,900 in 2013.
“Lightly used cars are very appealing to car shoppers since they are equipped with modern technology and have already taken their biggest depreciation hit,” says Caldwell.
Edmunds says dropping gas prices also fueled an increase in purchases of larger vehicles, and low interest rates and longer loan repayments allowed shoppers to buy more expensive vehicles.
More shoppers looking to buy a used car are opting for certified pre-owned (CPO) vehicles, with sales hitting an all-time high, according to analysts at Edmunds.com, a popular online destination for car shoppers.
In the company’s latest Used Vehicle Market Report, analysts found that in 2014, CPO sales hit an all-time high of 2.3 million, which is noteworthy because it wasn’t even a record year for used car sales.That means more buyers are being swayed by the benefits of buying a vehicle that has gone through the rigorous testing and reconditioning programs that are part of a dealership’s CPO program. OEMs have been marketing these programs heavily and it appears to be paying off.
According to Edmunds, CPO sales were 20.8 per cent of total used car sales at franchised dealerships in 2014 — the highest percentage since CPO programs were introduced.
“We fully expect CPO popularity to continue throughout 2015 because many leased cars are being returned to the dealership in excellent shape and lightly used cars are being traded in at faster rates than in previous years,” says Edmunds.com Senior Analyst Jessica Caldwell. “This allows dealers to maintain a large CPO inventory. Car shoppers are finding a great selection to choose from, and, in the current economy, many are comfortable spending a bit more for that extra peace of mind that a CPO car brings.”
Prices are also rising, which is even more good news for dealerships, with the average price for a used vehicle sold at a dealership reaching $16,800 last year compared to $15,900 in 2013.
“Lightly used cars are very appealing to car shoppers since they are equipped with modern technology and have already taken their biggest depreciation hit,” says Caldwell.
Edmunds says dropping gas prices also fueled an increase in purchases of larger vehicles, and low interest rates and longer loan repayments allowed shoppers to buy more expensive vehicles.
Resource:
Certified pre-owned sales booming, says Edmunds
0 comments :
Post a Comment