Americans are buying more Certified Pre-Owned (CPO) cars in 2023 than last year. CPO loans are proving easier to get in recent months than they have been. And the available supply of CPO cars is increasing as dealers, no longer facing a severe shortage of used cars, actually have time to inspect and certify them now.
According to Kelley Blue Book parent company Cox Automotive, CPO sales rose 8.4% this June compared to last. Over the first six months of 2023, CPO sales are 6.4% higher than last year.
CPO Loans Easier to Get
The change comes, in part, because it has grown easier to qualify for a CPO loan. Credit access improved for all loan types last month, but lending to purchase a certified used car loosened more than lending for new or other used car types.
Related: Buying a Certified Pre-Owned Car – What You Should Know
“For consumers with good credit that are struggling to afford a new vehicle, CPO is an excellent alternative,” says Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive. “Buyers can get a nearly new vehicle at a much better interest rate than they can get in the used market.”
Inventory Improving
CPO shopping may also be spiking because a used car inventory crisis has mostly passed. Last year, dealers were so short on used cars that they were often able to sell recent used models almost as quickly as they acquired them. Some bypassed the inspection and certification process because they could sell used cars at a high price even without it.
The used car market has not normalized. It may not for several years, as millions of cars automakers couldn’t build at the height of the COVID-19 pandemic never reach the used market. But it is growing more normal, allowing time for dealers to go through the certification process.
