Annual CPO Gross sales: Wanting forward, Cox Automotive’s CPO forecast for 2022 is 3.0 million, a rise 12 months over 12 months and above 2019. This 12 months will most likely be the final 12 months that file CPO gross sales are potential primarily based on declining lease maturities after 2022.
Supply: Cox Automotive
2021 licensed pre-owned (CPO) gross sales reached Cox Automotive’s forecast of two.8 million, narrowly lacking 2019’s record-breaking efficiency by solely 2.2%, Cox reported Jan. 14. With 2,748,164 items offered in 2021, CPO gross sales outpaced 2020 with a 5.4% improve.
“We misplaced floor within the final a part of 2021, however we’re forecasting a file in 2022,” stated Cox Automotive Chief Economist Jonathan Smoke in a information launch. “The demand is there, and CPO matches a vital candy spot. It’s the finest various to a brand new car. It’s one thing that may be a win for the producer, and lots of manufactures are targeted on CPO as a strategic phase to introduce customers to their manufacturers. Shoppers who’ve good credit score and qualify for licensed pre-owned loans see considerably higher phrases or charges that make a giant distinction of their cost and that greater than compensates for the upper value of an authorized pre-owned unit. And it’s a win for the vendor as a result of on common they’re commanding a better value and better margin even with the upper certification price.”
Wanting forward, Cox Automotive’s CPO forecast for 2022 is 3 million, a rise 12 months over 12 months and above 2019. This 12 months will most likely be the final 12 months that file CPO gross sales are potential primarily based on declining lease maturities after 2022. This forecast is supported by what is predicted to be a file tax refund season and the attractiveness of licensed pre-owned automobiles to customers wanting like-new automobiles.
December 2021 CPO Gross sales
Licensed pre-owned (CPO) gross sales marginally rose to 186,748 items in December. This gross sales degree displays a 3% month-over-month improve and a 19% year-over-year lower. December CPO gross sales elevated after two months of falling, following a powerful efficiency throughout the first three quarters of the 12 months.
In response to Cox Automotive estimates, whole used-vehicle gross sales had been down 3.8% 12 months over 12 months in December. December used seasonally adjusted annual price (SAAR) is estimated to be 39.1 million, down from 40.6 million final December and flat in comparison with November’s 39.1 SAAR. The December used retail SAAR estimate is 20.4 million, down from 21.6 million final 12 months.
Initially posted on Automobile Remarketing
