Edmunds.com Says Certified Programs Are Booming and Helping Used-Car Prices

Certified pre-owned vehicles are commanding a greater share of dealers’ used-car sales than they were a year ago, and this trend has helped to push up overall used prices, according to Edmunds.com.

In fact, the company said CPO programs are booming and driving up used-vehicle prices.

To support this claim, Edmunds.com estimates that certified sales represent 18.5 percent of used-vehicle sales at dealerships. As of this time last year, these sales represented 13.8 percent.

On average, a three-year-old used model fetched $18,832 on the retail market during September. This marks an 8.5-percent year-over-year uptick.

“Used cars are in great demand and relatively short supply, so their prices are remarkably high,” explained Joe Spina, an analyst with the site.

“Automakers understand that many traditional new-car buyers are considering used cars, and in response are emphasizing their certified pre-owned car sales programs through which they can earn revenue on used-car sales,” he continued. “This effort will keep used-car prices high since CPO cars sell for a higher price than comparable non-certified used cars, raising the ceiling for the entire used car market.“

Edmunds.com also provided the charts below. The first details some of the three-year-old used unit whose True Market Value prices have shown the greatest year-over-year changes. The second chart details the average True Market Value price for different segments of three-year-old used units.