Spinella: Dealers Sold a Lot of Used Cars in May, NADA: CPO Sales Are in Solid Shape May 29, 2014
Spinella_Art_ head shot

Retail Used Sales Volume Seeing 1.5% Increase in May

Art Spinella
CNW Research

Retail used vehicle sales looked to be increasing 1.5% over last year to 4.5 million units. Financing has opened up for franchised and independent dealers, coming from the stable finance market and acceptance of wider and lower score consumers. Private party sales were on track to drop 3.7% in volume during May.

Check out the latest edition of Retail Automotive Summary

Franchised Dealers Saw Prices Increase to $11,400 in May Vs. $11,372 in April:
Independent dealers saw prices fall 1.6% compared to April.

Used Car Sales Growth Has Spurred Boom in What Dealers Offering for Trade-ins:
Franchised dealers increased Budget-car trade-in price nearly 32%, and 39% for compact pickup.

Run on Used Vehicles Has Shrunk Days’ Supply by 1.4% Vs. Year Ago:
Part of the reason remains a mismatched consumer-demand vs. inventory condition.

NADA Used Car Guide on Strength of CPO Sales

Jonathan Banks
Executive Automotive Analyst
NADA Used Car Guide

Certified pre-owned (CPO) vehicle vehicle sales should see real growth in next few years with demand and supply moving solidly in right direction. Manufacturers will likely need to enhance marketing efforts to clearly outline to consumers all that certification entails. Consumers are becoming more confident in CPO reconditioning, extended warranties, and vehicle condition.

See the latest issue of Perspective on CPO Vehicles

CPO Demand Increasing Sharply in Past 2 Years at Opportune Time for OEMs:
Late model supply – the primary pool for CPO vehicles – finally started growing again in 2013.

Consumer Unfamiliarity Explains Why Many Shoppers Are Unwilling to Pay Premium for CPO:
While 62% of new car shippers are willing to pay premium, only 34% of used car shoppers are willing.

CPO Sales Account for 13% of All Used Vehicle Sales at Franchised Dealers:
Shows there’s huge potential going forward, but needs consumer CPO familiarity.
Expert Video Recap
Video news that moves people and ideas
BMW CPO video
Walking through the CPO Process

Auto­Trader and BMW talk about tak­ing the BMW 135i through the cer­ti­fied pre-owned vehi­cle test­ing process – where safety-related items made top of list.

Video News & Opinions
Video news that moves people and ideas
Beggs_Ricky_Black Book_May 26 2014
Ricky Beggs on the Used Car Market

Beggs talks about new vehi­cles and resid­ual pro­jec­tions where specs, new tech­nol­ogy, and engi­neer­ing are key for gaug­ing accu­rate resid­u­als for leas­ing and risk analysis.

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