CPO Returns to Pre-Pandemic Levels
Inventory shortages have plagued every level of the industry. Due to ongoing semiconductor and microchip production shortfalls, vehicles are getting harder and harder to come by. Certified pre-owned (CPO) vehicles are selling at a premium with sales reaching 1,218,255 units (Fig. 1) in CYTD 2021 through July, reflecting a 11% YTD YOY increase. The CPO market has experienced consistent growth over the last three years, with 2020 being the outlier due to Covid. The new-vehicle affordability cost is being felt by many customers, which is contributing to the growing appeal of the CPO market.
CPO is Significant Driver of Loyalty
As Covid driven lease extensions expire, CPO supply constraints will improve. This provides OEMs the opportunity to take advantage of the growing used/CPO market and start to build brand loyalty with their CPO owners.
Read our full Automotive Advisory Insights from IHS Markit. Our September 2021 report on the US Market focuses on the importance of CPO in the current market as vehicle sales continue to rise. Additional coverage includes CPO RTM volume, CPO cost and more.