Edmunds: 2010 CPO Sales Hit Almost 19% of Franchised Dealers’ Used Sales Volume

SANTA MONICA, Calif. -
Based on 2010 sales numbers shared this week by Edmunds.com, it appears that the certified pre-owned segment has become a more integral part of the used-vehicle operations at franchised dealerships.
In fact, CPO sales commanded close to a 19-percent share of franchise dealers’ used-car business last year, an upswing — albeit a modest one — from the CPO penetration in 2009, according to Edmunds.com
Specifically, the company estimated that CPO units accounted for 18.6 percent of franchise dealers’ used sales in 2010, versus the year-ago period, when CPO penetration hit 17.8 percent.
The analysis also delved into used-car pricing during December, which climbed 8.2 percent on a year-over-year basis, but fell modestly on a month-over-month basis.
A three-year-old vehicle fetched a transaction price of $17,954, on average, during December. This average was a $1,368 year-over-year increase and a $257 dip from the prior month.
“The people who benefit most in this used-car market are car shoppers with a high-value trade-in,” explained Edmunds senior analyst Joe Spina.
“Strong demand, a continued short supply and an effort by carmakers to boost certified sales are keeping used-car prices elevated, so dealers are happy to take in high-value cars on a trade,” he added.
Edmunds went on to share some model-specific data regarding retail used-car prices.
Shoppers who sold their Chevrolet Suburban vehicles in December enjoyed rather robust pricing results, as the Average Used True Market Value was $25,250, up 32.5 percent from December 2009.
The following table from Edmunds shares more details for the Suburban and other vehicles, as well:
Average Used True Market Value® by Model
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Model
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December 2009
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December 2010
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% Change
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Chevrolet Suburban
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$ 19,057
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$ 25,250
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32.5%
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Cadillac Escalade
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$ 24,684
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$ 32,643
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32.2%
|
BMW X5
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$ 28,687
|
$ 37,921
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32.2%
|
Chevrolet Tahoe
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$ 17,932
|
$ 22,886
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27.6%
|
GMC Yukon XL
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$ 24,091
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$ 29,611
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22.9%
|
Dodge Caravan
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$ 7,965
|
$ 9,780
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22.8%
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Ford Expedition
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$ 18,888
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$ 22,961
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21.6%
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Chevrolet Uplander
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$ 9,249
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$ 11,117
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20.2%
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Acura MDX
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$ 23,371
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$ 28,088
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20.2%
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Hummer H2 SUT
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$ 27,504
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$ 32,899
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19.6%
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Edmunds also detailed how various segments fared in terms of Average Used True Market Value with the below table:
Average Used True Market Value® by Segment
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Segment
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December 2009
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November 2010
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December 2010
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Premium Sport
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$ 30,203
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$ 33,663
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$ 33,362
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Luxury SUV
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$ 25,343
|
$ 29,045
|
$ 28,933
|
Premium Luxury
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$ 26,326
|
$ 28,768
|
$ 28,797
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Full-size SUV
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$ 18,184
|
$ 23,904
|
$ 23,618
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Standard Luxury
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$ 19,024
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$ 22,452
|
$ 22,060
|
Full-size Pickup
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$ 17,791
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$ 19,906
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$ 19,527
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Midsize SUV
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$ 16,754
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$ 17,981
|
$ 17,572
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Minivan
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$ 14,298
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$ 16,590
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$ 16,113
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Compact Pickup
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$ 13,610
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$ 15,773
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$ 15,605
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Mini SUV
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$ 13,839
|
$ 15,793
|
$ 15,489
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Standard Sport
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$ 14,055
|
$ 15,159
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$ 14,628
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Fullsize
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$ 13,265
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$ 14,362
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$ 14,111
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Full-size Van
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$ 11,773
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$ 13,471
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$ 13,535
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Midsize
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$ 12,449
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$ 13,374
|
$ 13,185
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Premium Compact
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$ 9,609
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$ 10,275
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$ 10,126
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Standard Compact
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$ 8,652
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$ 9,350
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$ 9,241
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Moving on, it is likely that the upswing in used sales will not be as steep as the gains on the new side, according to Edmunds.com. Furthermore, the site projects that used prices will see a modest decline in light of the sales momentum in the new-vehicle market.
“Still, Edmunds.com suggests that consumers interested in late-model used vehicles should keep an eye on prices and incentives for new vehicles since those new vehicles could actually cost less than used models,” officials noted.