Certified pre-owned vehicles worth extra money, consumers say
Posted on Friday, December 11, 2015 at 9:14:14 AM
Shoppers are willing to pay a little more for assured quality, especially when it comes to their automobiles. Edmunds released a survey on Wednesday finding that the vast majority of used car buyers - 88 percent of the more than 2,000 adults polled - were willing to pay extra for a certified pre-owned vehicle. CPO sales are currently the highest they've ever been.
Nearly 37 percent of the potential CPO buyers polled said they would pay up to an extra $500 for a CPO auto, while 37.8 percent said they would go up to $1,000.
"More and more shoppers are opening their eyes to the benefits of certified pre-owned vehicles," said Jessica Caldwell, Edmunds' director of industry analysis. "These cars offer a unique value proposition to shoppers who want to pay used car prices but demand the peace of mind that comes with a new car purchase."
"And while CPO used to be associated only with expensive luxury brands, we've seen every mainstream brand get into the game in recent years. With more near-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," she continued.
According to Wells Fargo, CPO sales are expected to hit 2.5 million by the end of the year and increase in 2016 as more consumers take advantage of auto financing options.