The CPO Conference, as part of Used Car Week in Las Vegas, was buzzing with industry executives, analysts and dealers looking to gain insight into how to benefit from and leverage the fastest-growing sector in automotive retail.
How fast is CPO growing? According to Joe Derkos, director of consulting and analytics at J.D. Power and Associates, CPO sales will top 2.3 million units in 2014 for the first time ever—a record-breaking year! All while new vehicle net transaction prices top $30K per unit. For the first half of 2014, used vehicle prices neared $20K as dealers focused more of their business in CPO. The used car industry will top $200 billion in revenue for franchised dealers in 2014.
Needless to say, the future of CPO looks bright: Dealers find these vehicles sell faster and have stronger retention while creating a positive relationship with the consumer. “Everyone is happy: the dealer, the customer, the salesperson” when selling a CPO car, said one excited dealer at the conference.
Sourcing CPO units continues to be a topic of conversation among dealers and remarketers. Tools that help them trade for more certifiable units can be game- changing for dealers in the used car business. Dealers and industry analysts are highly optimistic about the industry in the coming year. There are, however, risk factors that every dealer needs to consider when stocking and merchandising their inventory. Dealers are looking for mobile tools that help them quickly and efficiently evaluate risk and make better decisions.