AutoTrader Says Certified Pre-Owned Means Happy Owners Who Buy New Cars Next, from Marketing Daily.
While the numbers are still comparatively small, certified pre-owned (CPO) cars and trucks are about 18% of new car and truck volume and under 10% of total pre-owned volume, but it is growing fast, especially with waves of vehicles coming off lease now. This year, CPO volume is heading toward 2.3 million versus 1.8 million last year.
And that’s good for automakers and dealers, per data from AutoTrader.com’s annual CPO study, released on Thursday. The study suggests that certified pre-owned shoppers turn into happy owners, and then into buyers of new cars within the same brand family: 77% of CPO owners are likely to buy the same brand again, whether new or CPO, and 49% of owners are likely to buy new. Eighty-five percent of CPO owners are likely to buy from the same dealership.
Also, awareness of CPO is at an all-time high among auto shoppers, with 75% of new car shoppers and 45% of used car shoppers familiar with CPO. Last year, per the firm, 63% of new-car shoppers knew about CPO. The firm says that this year 44% of new car shoppers and 30% of used car shoppers (versus 22% and 18% last year, respectively) are considering CPO for the first time.