A new study from Kelley Blue Book parent company Cox Automotive finds that interest in Certified Pre-Owned (CPO) vehicles remains strong as shoppers continue searching for alternatives to expensive new vehicles. However, many consumers still don’t fully understand what sets a CPO vehicle apart from a traditional used car. the research found.
What Is a Certified Pre-Owned Vehicle?
CPO vehicles are used models that have undergone a manufacturer-backed inspection and qualify for additional warranty coverage. To earn their certified status, the vehicles must meet program requirements that typically include limits on age, mileage, and condition.
Some factors that draw in CPO buyers include:
- The vehicle provides a larger sense of security than buying a typical used car
- Is fully inspected and goes through a rigorous process to become certified
- Often comes with warranties similar to those offered on new cars
- Can be easier to get affordable financing than a used car loan
So, you might think of a CPO vehicle as the middle ground between a new car and a traditional used car: It offers lower prices than new models while providing warranty protection and added peace of mind.
Read More: A Guide to Certified Pre-Owned Cars
CPO Appeal Remains Strong
According to the study, 74% of shoppers find CPO vehicles appealing today, essentially unchanged from the last time the study was conducted in 2023. However, likely due to rising costs, the appeal of new vehicles has fallen from 85% in 2023 to 76% in 2026. The current average retail price is over $50,000, which could be a steep ask in an increasingly expensive economy.
With a CPO vehicle, shoppers can instead access preferred brands and vehicles with the features and qualities they are interested in without sacrificing affordability.
Interest Exceeds Understanding
Despite strong interest in CPO vehicles, understanding of the concept and actual purchases are not quite there yet. Fifty-seven percent of shoppers are open to purchasing a CPO vehicle, but only 12% of used-vehicle sales are CPO transactions, the study found.
Part of this gap might stem from limited consumer awareness. Only 31% of new-vehicle shoppers open to a CPO model said they knew exactly how a CPO vehicle differs from a traditional used vehicle.
For car buyers who have purchased a CPO model, their ownership experience appears to reinforce the value of the models, the study notes. Seventy-two percent of current CPO owners say they would not return to buying a traditional used vehicle.
The larger problem may be that not enough people even know to consider a CPO vehicle as a viable option for their needs.
Automakers Are Looking for More CPO Inventory
The findings come as some automakers look to increase the supply of certified vehicles.
Recently, Honda has encouraged dealers to place new vehicles in service-loaner fleets on dealer lots before certifying and selling them as CPO models. The cars typically accumulate only about 600-800 miles, so they arrive at the buyer almost brand-new, but at a lower cost than a new car.
As affordability remains a concern for many shoppers, CPO vehicles may continue to serve as an increasingly attractive option between new and used cars.
