Cars.com Study: Interest in CPO Still Growing, Especially in Certified-Friendly Demographics
After revealing earlier this week that Kia Motor Co. and Scion have both partnered with Cars.com to promote their certified pre‐owned vehicles, the site revealed the results of a study that shows CPO vehicles continue to gain interest among car shoppers.
The study results — taken from a survey of nearly 900 online car shoppers in June who intended to purchase or had recently purchased CPO — showed that quality, reliability and value are among the top reasons shoppers consider purchasing CPO.
The site also shared in a blog post on its DealerAdvantage news site that many survey responders consider recent-model CPO vehicles as alternatives to buying new.
“The findings also revealed that consumers place a premium on CPO vehicles over used cars and are often in market for a longer period of time than their used- and new-car shopper counterparts,” officials added.
The study results were also highlighted in a presentation at the CPO Forum in Scottsdale, Ariz., Tuesday afternoon, titled, “CPO Shopper Insights,” and delivered by David Greene of Cars.com. For more information on the CPO forum and the Used Car Week conferences, see here.
Breaking down the numbers, according to the study results, one in four non-luxury CPO shoppers and one in three luxury CPO shoppers had owned a certified pre-owned vehicle in the past, “indicating a somewhat high degree of customer loyalty.”
And what demographic made up the most CPO shoppers? The site noted that the survey showed most CPO shoppers are college educated, with relatively high incomes.
According to the results, a total of 51 percent of CPO shoppers have a college degree or have completed post-graduate education, with 43 percent of the total reporting household income of more than $65,000.
Furthermore, “a higher proportion of luxury CPO shoppers reported earning more than $65,000 in their household and having post-secondary degrees, while a higher proportion of non-luxury CPO shoppers are female and non-white,” the company added.
And what drives these shoppers’ purchases? In the CPO market, quality, reliability and value drive sales, according to the study.
The site also explained that luxury CPO shoppers “are influenced by the ability to afford a luxury vehicle and get more features/options for their money, while non-luxury CPO shoppers are interested in the peace of mind and lower mileage compared with non-certified used, but at a lower price point than a new vehicle.”
But both luxury and non-luxury shoppers said they would pay more for the CPO label.
And most shoppers in the market for a CPO ride spend quite a bit of time searching through the lots and online, the study showed.
“The majority of consumers considering CPO vehicles spend more than four months shopping for a car, particularly in the case of luxury CPO shoppers — nearly 70 percent of luxury CPO shoppers spend at least four months in market,” officials said.
Lastly, the site explained that though shoppers are willing to pay more for a CPO vehicle, most indicated an interest in purchasing a CPO vehicle that is less than three years old, with less than one in four considering a CPO vehicle five years or older.
And dealers may have to be extra diligent in retaining CPO customers, since nearly all luxury CPO shoppers also consider new vehicles, with eight in 10 non-luxury CPO shoppers also considering new, while seven in 10 of all CPO shoppers also consider purchasing a non-certified used vehicle, according to the study.