Sales of new and used vehicles have bounced back from pandemic lows with unprecedented ferocity in the first quarter of 2021. Many expert predictions are for robust sales and high values going forward. Shortages of new vehicle inventory the result of chip shortages and other issues have sent used vehicle values soaring. There are some reports that very low milage used vehicles are bringing new vehicle prices at auction.
One used vehicle market segment in particular, certified pre-owned (CPO), has enjoyed a huge increase over 2020 lows, and a significant increase in the same pre-pandemic period in 2019.
Cox Automotive reports there were 286,061 certified pre-owned sales in March 2021, beating year-ago figures by 80% and February sales by 36%.
They were also more than 7% stronger than the prior record of 265,878 CPO sales, which occurred in March 2019. Manufacturers have been the benefactors of excellent profit margins as a result of the warranties and benefits offered from their very popular CPO programs.
The CPO phenomenon is not exclusive to franchise dealers. Independent dealers should strike now and implement a robust CPO program as part of their operations.
Buckeye is proud to be a service provider for two CPO programs that directly benefit the independent vehicle retailer through both the National Independent Automobile Dealers Association BHPH CPO and the Texas IADA CPO programs.
So, act now and put CPO vehicles in your dealership! Not only will you add value to your vehicles, which means more profits and increased customer benefits, you’ll help the associations with a new revenue stream.
For more information on how we can help you implement a CPO program, call us at 330-726-9030.