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Certified Pre-owned Cars - US - August 2015

Certified Pre-owned Cars - US - August 2015

The certified pre-owned car market is small but growing. Certified pre-owned (CPO) cars are used cars that have been certified by a manufacturer or dealership. Certification means that these vehicles are in very good or excellent condition and have passed an inspection by a trained technician, and it often means that these vehicles are under a certain amount of mileage or under a certain age. CPO cars often come with a factory- or dealer-backed warranty, a roadside assistance plan, a service plan, or some combination thereof. They are also often regarded as being better-maintained by the first owner than most used cars.

This report looks at the following areas:

CPO purchase intent is low
Economic challenges still affect consumers


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Figure 1: Intention to Purchase CPO, May 2015
The opportunities
Figure 2: Consideration of brands, May 2015
Figure 3: Awareness of CPO cars, May 2015
Figure 4: Consideration of CPO cars, May 2015
What it means
THE MARKET
What you need to know
CPO market is small but growing
Rising consumer expenditures drive the overall used-car market
Market size and forecast
CPO market poised to grow
Figure 5: Total US sales of CPO cars, 2010-20
Market factors
Economic bounce back could help CPO market
Figure 6: Real gross domestic product and related measures: percent change from preceding period
Consumer expenditures on motor vehicles are increasing
Figure 7: Personal consumption expenditures by major type of product, 2013-15
KEY PLAYERS
What you need to know
Luxury brands are strong when it comes to brand consideration
Toyota garners high interest when it comes to CPO cars
CarMax is an outlier in the CPO world
What’s working?
Lexus, Mercedes-Benz, BMW, Audi outpacing other luxury brands
Toyota garners strong CPO interest
What’s struggling?
Jaguar, Land Rover, Porsche not generating as much interest
What’s next?
Automakers have an opportunity when it comes to CPO
THE CONSUMER
What you need to know
CPO car purchase intention is low
Yet, CPO awareness is high
So is CPO consideration
CPO purchase intention not strong
New cars are capturing consumer attention
Figure 8: Intention to Purchase CPO, May 2015
Types of vehicles being considered
Figure 9: Type of vehicle considered, May 2015
Awareness, consideration of CPO cars is high
Consumers are aware of CPO cars, despite purchase intentions
Figure 10: Awareness of CPO cars, May 2015
With solid consumer consideration, CPO segment could present a ripe opportunity
Figure 11: Consideration of CPO cars, May 2015
Higher CPO awareness results in higher CPO consideration
Figure 12: Consideration of CPO cars – Rebased to those who have heard of CPO vehicle programs, May 2015
Toyota and luxury brands are heavily considered
Toyota outpaces even luxury brands when it comes to CPO consideration
Figure 13: Consideration of brands, May 2015
Price, warranty, maintenance drive CPO appeal
Lower sticker price and the presence of a factory warranty are equally attractive
Figure 14: Appeal of CPO vehicles, May 2015
Parents, blacks have interest in CPO
Parents much more interested in CPO cars
Figure 15: Consideration of CPO cars, by demographics, May 2015
Black consumers present an opportunity
Figure 16: Blacks’ expected car buying timing, by gender and age, January 2015
APPENDIX
Data sources and abbreviations
Data sources
Abbreviations and terms
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
Social Media Research
Trade research
Statistical Forecasting

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