Due to a trend of decreased auto leasing, certified preowned vehicle sales are forecasted to fall for the second year in a row to their lowest volume in a decade, according to Cox Automotive data.
CPO prices are expected to drop as a result but will stay elevated, though off the historical peaks they reached during the pandemic.
2022 sales fell 10 % year-over-year to 2.47 million vehicles, Cox data shows. This year, it forecasts sales to fall 11% to 2.2 million, its lowest in 10 years.
Sales started this year with a bang, up 21.5% year-over-year in January, though down 10% from December, reflecting a typical annual drop from year-end sales.
A diminished supply of formerly leased models is behind the fall in CPO sales, as it’s the biggest source of gently used vehicles. Leasing has fallen since the start of the pandemic because inflated new- and used-car sale prices moved many lessees to buy their models when leases ended.
But some carmakers are expanding the number of cars that can be included in CPO sales by allowing sales of models as old as 10.
Originally posted on Auto Dealer Today