Certified Pre-Owned Car Sales at All-Time High, says Edmunds.com, from Virtual-Strategy Magazine.
In the company’s latest Used Vehicle Market Report, available at http://www.edmunds.com/industry-center/, Edmunds.com analysts noted that in 2014 CPO sales hit an all-time high of 2.3 million — even though it was not a record year for used car sales overall. Last year, CPO made up 20.8 percent of total used car sales at franchised dealerships, the highest percentage since certified pre-owned 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. This allows dealers to maintain a large CPO inventory,” explained Edmunds.com Senior Analyst Jessica Caldwell. “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.”
Even though there are more used cars in the marketplace than in recent years, retail prices have remained high. In fact, with a six percent gain in year-over-year used prices, 2014 generated record high average used vehicle retail values. The average price for a used vehicle sold at a dealership last year was $16,800, compared to $15,900 in 2013. In 2014, the average one-year old vehicle sold for almost $30,000, 5.7 percent higher than in 2013.