CPO car market shows ‘sustained strength,’ with sales at 3-year high
After a challenging April, certified pre-owned vehicle sales appear to have turned a corner in May.
According to the latest “State of the Dealer” report from ZeroSum, dealers moved 182,000 certified vehicles in May, which marks the first time CPO sales have crossed this threshold in more than three years.
Dealers also have more access to certified vehicles. In May, CPO inventory was at a four-year high, climbing from 208,000 in April units to 218,000 units, the ZeroSum data shows.
This was the second straight month CPO inventory climbed.
And May was the fourth straight month that turn rates for CPO were at least 80%, ZeroSum said. Days-to-move for certified was at 42 in May, compared to 40 in April and 42 in March.
Looking forward, ZeroSum anticipates sales will likely dip month-over-month in June, but still show strength from year-ago figures.
“The 30-day forecast points to a pullback from that number (in May) but stays above recent levels and indicates sustained strength in this vehicle sector,” ZeroSum said in the report.
Specifically, the forecast for June’s CPO vehicle movement is at 174,000 units, down from 182,000 in May but up from 152,000 in June 2023.
In its overall assessment of CPO, ZeroSum said: “Certified vehicles are following the same pattern as the new car market, with strong movement growth; the highest they have been in three years.”
This strength follows a sluggish April for CPO.
According to a Cox Automotive analysis of Motor Intelligence data, there were 209,265 certified sales in April, which was a 9.8% month-over-month dip and a 2.5% year-over-year decline.
Through four months, certified sales were up 0.2% year-to-date, Cox said.