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.
Originally posted on Auto Dealer Today