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.
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Originally posted on Auto Dealer Today
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