In 2019, the last year before the pandemic reshaped our economy, Americans bought a record number of certified pre-owned (CPO) cars. In 2021, we’re on pace to leave that record far behind.
Through the first seven months of 2019, Americans had bought 1,639,864 CPO cars, according to Cox Automotive. During the same period this year, we’ve already bought 1,712,320. Cox Automotive is the parent company of Kelley Blue Book.
Used Car Sales Slowing, CPO Sales Speeding Up
Last month, overall used vehicle sales fell while CPO sales increased. Americans bought 15% fewer used cars in July 2021 compared to July 2020. But CPO sales increased 2%.
Why the increase?
An Alternative to Buying New
Record high new vehicle prices may be pushing some buyers into the used car market. Shoppers who would be buying a new car if they could afford it are likely attracted to the warranty that accompanies a CPO vehicle.
Credit conditions also remain favorable, Cox Automotive reports, as it remains easier to get a CPO loan than it was a year ago. Also, lower average interest rates on CPO loans help soften the impact of higher prices.
CPO by Brand
Some brands have benefited more than others from buyer attraction to CPO cars.
Cox Automotive reports that Kia had the largest year-over-year sales increase at 18%. Our sister site, Autotrader, recently recognized Kia for operating the best CPO program among mainstream automakers.
Traditional powers Toyota and Volkswagen, meanwhile, saw their CPO sales fall by more than 5% comparing July year-over-year.
Alfa Romeo revamped its CPO website and sales program earlier this year and saw the largest gain compared to July last year at 43%.
Related: How to Buy a Certified Pre-Owned Car
