Certified pre-owned (CPO) vehicles have rebounded back to pre-pandemic levels as unit sales rose double-digits year-to-date in July, IHS Markit reported.
- CPO unit sales have reached 1.218 million in the calendar year-to-date to July, indicating an 11% increase year-on-year. Growth is driven by higher vehicle affordability, after the decline recorded in 2020 which followed three years of expansion.
- Prices have also increased for a number of reasons, with the two main drivers being high demand and limited supplies. The average cost of vehicles has surged 9% year on year, equivalent to an annual increase of $41.
- CPO Return to Market volume from 2012 to 2018 grew by 2.7 times, with non-luxury and luxury CPO trending the same way since 2015. Non-luxury CPO returned to market growth outpaced luxury, bringing the return to market up 12.1%.
CPO constraints are expected to improve as lease extensions driven by COVID-19 expire.