TrueCar projects record certified pre-owned vehicle revenue in 2015 , from benzinga.
ANTA MONICA, Calif., April 13, 2015 /PRNewswire/ — TrueCar, Inc., the negotiation-free car buying and selling mobile marketplace, estimates consumer purchases of certified pre-owned (CPO) vehicles, a growing source of revenue for automakers and dealers, will expand by 11 percent to reach an all-time high this year.
TrueCar currently forecasts sales of CPO cars and trucks will total approximately 2.6 million units in 2015, up from 2.3 million the previous year. At that level, CPO volume would exceed sales of either new pickup trucks or premium autos, which TrueCar estimates at 2.3 million and 2.1 million units, respectively. CPO supply fell to a 15-year low of 9.3 million units in 2013. However, TrueCar projects the supply of all used vehicles from one to five years old, including CPO units, will rebound to 10.4 million in 2015.
“Improved inventory means we can expect a stellar year for the used market – and particularly for certified pre-owned vehicles,” said Larry Dominique, TrueCar’s executive vice president and president of ALG, TrueCar’s residual value data unit. “Across the industry automakers have enhanced CPO programs to delight buyers with longer warranties, improve their own residual values, and successfully grow volumes of these high-margin products for their dealers.”
In contrast to traditional used vehicle sales, automakers receive revenue from overseeing inspection, refurbishment and providing warranties for CPO units, which are mainly vehicles coming off lease. TrueCar works with automakers to help sell CPO vehicles, offering technology and tools to improve such sales through TrueCar and its trusted affinity partner network.