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More than 50% of New Car Shoppers Would Consider CPO


Porsche Press Release - CPO Program

A staggering number of new car shoppers, 55% to be exact, are willing to consider buying a certified pre-owned (CPO) vehicle, up from 43 percent a year ago according to a study by AutoTrader.com

That ratio of shoppers who would think about buying a certified pre-owned vehicle jumps to 69 percent once shoppers understand what certified pre-owned entails, the study found.

Among used-car shoppers, 60 percent said they would consider certified pre-owned, and that figure rose to 66 percent once the definition of certified pre-owned was explained to them.

“While it is good to see that consideration for CPO vehicles is strong, there is still a lot of confusion about what CPO actually means,” said Rick Wainschel, AutoTrader vice president of consumer insights, in a statement. “The more shoppers know about CPO, the more willing they are to consider the vehicles.”

Certified pre-owned vehicles are generally newer and have been driven fewer miles than the typical used vehicle. They also have undergone a thorough inspection and have been approved by the vehicle manufacturer or a third-party certifying body. CPO vehicles typically also have extended warranties, which can appeal to buyers.

However, the so called "thorough CPO inspection" signed off by the manufacturers are performed by each dealership business, and the car shoppers should be aware that the the process doesn't guarantee that the CPO vehicle is in perfect condition nor was not involved in a crash.

See Also:
Are you considering CPO vehicle?  Read this First!
Koenigsegg Announces CPO Program

The AutoTrader study reported that certified pre-owned vehicles can be a conduit for dealers and automakers to build brand loyalty. Seventy percent of CPO vehicle owners are likely to return to the dealership for service, compared with 61 percent of drivers who have never had a CPO vehicle.

Automakers and dealers “need to ensure that they are doing everything they can -- from certifying the right amount of their eligible inventory to educating shoppers on what CPO means and merchandising CPO vehicles effectively -- to turn shoppers into CPO owners,” Wainschel said. “Doing so can have a lasting, positive impact on both the brand and the dealership.”

According to the study, 92 percent of CPO vehicle owners who are in the market for another CPO vehicle are likely to stick with the brand they currently drive.

CPO sales are on track for a record sales year.

Automakers sold 177,831 certified pre-owned vehicles in October, the most recent month for which data are available, up 21 percent from the year-earlier month, according to the Automotive News Data Center. Through the first 10 months of 2013, 1.8 million certified pre-owned vehicles were sold, a 15 percent increase from the year-earlier period.

This year, new-car buyers said they would pay a $2,940 premium for a CPO vehicle -- more than double the $1,245 they would have paid in 2011. Used-car shoppers said they would pay $2,163 this year, up from $1,292 in 2011.



More than 50% of New Car Shoppers Would Consider CPO Reviewed by Blogs on 12:21 AM Rating: 5

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