J.D. Power Predicts CPO Vehicle Market Will Keep Thriving in 2019
Recently, we shared how more consumers are turning to the used vehicle market this year, in light of increasing prices for brand-new models. This trend applies to drivers of all ages, including millennials, who are placing more emphasis on affordability when buying their next car.
Now, 2019 is revealing another sales trend for the auto industry. According to Andrew Stowe with J.D. Power, the CPO vehicle market should continue to thrive as the year plays out. This trend has unique benefits for both dealerships and consumers.
Go with CPO: Find the right CPO vehicle for you
CPO perks for dealerships
Stowe explains that these programs offer three main advantages for dealerships: they enhance brand loyalty, help strengthen relationships with owners, and provide better margins. Per J.D. Power’s research, brand loyalty ranked 10 to 12 points higher for CPO vs. non-CPO vehicles. Additionally, the results indicated a profit margin of nearly 0.75 points higher for CPO than for a non-CPO vehicle.
CPO advantages for consumers
CPO programs are also rewarding for shoppers. U.S. News & World Report contributor John Vincent shares a plethora of reasons to go with a CPO vehicle.
Thoroughly inspected
Before a dealership can declare that a vehicle is CPO, certified mechanics put it through a rigorous series of tests to make sure it’s in peak operating condition. For example, vehicles in GM’s CPO program successfully pass a 172-point inspection and reconditioning process.
Low mileage
CPO vehicles tend to have pleasingly low mileage when compared with non-CPO used vehicles. For example, if you purchase a Chevy or Buick CPO vehicle it will have 75,000 miles or less on it, according to the manufacturer.
Positive history
Per Vincent, most CPO programs exclude vehicles that have experienced major body damage from a collision. So, no matter which CPO vehicle you’re considering, you can have the peace of mind knowing that it is mechanically sound and there are no hidden signs of structural damage.
Excellent warranties
Lastly, if you buy a CPO vehicle, most major repairs are covered under special warranties. Many CPO vehicles come with perks like roadside assistance and an exclusive maintenance program, as well as generous powertrain warranties. GM CPO vehicles come with a 6-year/100,000-mile powertrain warranty, per the manufacturer.
Low on Tread? Simplify your search for new tires
News Sources: WardsAuto, U.S. News & World Report, GM Certified
The News Wheel is a digital auto magazine providing readers with a fresh perspective on the latest car news. We’re located in the heart of America (Dayton, Ohio) and our goal is to deliver an entertaining and informative perspective on what’s trending in the automotive world. See more articles from The News Wheel.