CPO Sales Up Year-Over-Year
The interest rate factor actually buoys them, Cox says.
November CPO sales fell 4.4% month-over-month but were up by more than 17,000 units year-over-year.
IMAGE: Getty Images/halbergman
Despite, and partly even because of, overall economic pressures in the market, certified preowned vehicle sales are relatively robust, according to a Cox Automotive report.
Though November CPO sales fell 4.4% month-over-month, the results were up by more than 17,000 units year-over-year.
Sales are on target to finish the year at at least 2.45 million, meeting Cox’s projection, though that’s down 11% from 2021.
Economic pressures have squeezed CPO sales this year, especially rising interest rates, but also Covid factors and delayed tax refunds, Cox said. Interest rates for used-car loans have increased more than three percentage points, and an additional percentage point hike is likely by year’s end, making for a 12% higher monthly payment, it said.
At the same time, inflated new-car prices have pushed more consumers into the used-car market. And interest rates end up being a benefit in CPO purchases comparatively because average rates for those loans are more than two percentage points lower than the average rates for overall used cars, Cox said.
DIG DEEPER: NIADA Introduces Upgraded CPO Program
More Dealer Ops
Dealer Debrief: August Auto Sales
Gas-powered engines still dominate the U.S. vehicle market, but hybrids are gaining ground as consumers look for ways to cut their gas costs.
Read More →
Dealership Profits Decline
While new and used retail sales stagnated, dealerships have been particularly supported by fixed operations and finance-and-insurance profits, according to a new report.
Read More →
Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →