Managing End-of-Lease: An Inside Look, from Auto Remarketing.
CARY, N.C. – The first three months of 2015 represented the best quarter ever for certified pre-owned sales, according to Autodata Corp., which said dealers moved 614,450 CPO vehicles in Q1.
Not only did that follow the fourth straight year of record CPO sales, it also followed a fourth quarter in which leasing’s penetration of all new vehicles financed reached nearly 30 percent, according to Experian Automotive. Not to mention fourth-quarter leasing volume was up 3.6 percent year-over-year, Experian said.
And since we’re now a few years into the lease market’s resurgence, lease maturities are expected to rise from 2.2 million in 2014 to 2.3 million this year and escalating to 3.1 million in 2016, according to data shared by J.D. Power at the NADA/J.D. Power Automotive Forum in New York in late March.
Clearly, these three trends go hand-in-hand: ramped-up leasing fuels off-lease volumes, which can give dealers an ample crop of vehicles ideal for certification and thus meet this burgeoning consumer demand.