88% of used-car shoppers would pay more for certified car
Nearly 90 percent of used-car shoppers said they would be willing to pay more for a certified pre-owned (CPO) vehicle, a recent survey by Edmunds.com found. Of those, 38 percent would pay up to $1,000 more and 37 percent would pay up to $500 more. CPO prices average $1,400 more than similar noncertified vehicles.
While CPO used to be associated only with expensive luxury brands, weêve seen every mainstream brand get into the game in recent years, said Jessica Caldwell, Edmunds.com director of Industry Analysis. With more new cars coming off lease and making up a larger chunk of used-car supply, shoppers can expect even more CPO vehicles on dealer lots in the coming months and years.
CPO sales made up nearly 22 percent of franchised dealer used sales in the third quarter, a record for any third quarter and up 18.4 percent from 2010. To keep payments affordable, consumers have been getting longer loans, with the average loan now topping five years.
CPO vehicles are likely to keep getting younger, as rental companies buy and sell more vehicles and leasing continues to be an important part of automakersê sales strategy, Edmunds said.Download Bulletin PDF