Potential pre-owned buyers? Anyone

November 26, 2018 12:00 AM

Just who exactly is a certified pre-owned vehicle buyer? Well, it can be just about anybody who walks through the showroom door.

Why CPO?

Consumers see multiple reasons to buy certified pre-owned vehicles. Survey respondents were asked to provide the most attractive selling point for buying if they had purchased a used vehicle backed by an automaker certified pre-owned program in the previous 12 months.
The price vs. a new-vehicle price:	21.8%
The additional CPO warranty offered on the vehicle:	6.1%
The multipoint inspection offered peace of mind vs. a noncertified used vehicle:	5.4%
A positive experience purchasing a CPO vehicle previously:	3.2%
All of the above:	52.6%
Other:	11%
Source: DealerRater-Automotive News survey of 6,049 consumers conducted Oct. 22-29

"Stop thinking of it as a CPO shopper — because everyone is really a CPO shopper," Brad McKay, senior product marketing manager at Cars.com, said this month at Used Car Week in Scottsdale, Ariz.

Shoppers who end up buying certified vehicles are willing to spend more for the peace of mind they get because of the more detailed inspection process and additional automaker warranty attached to the vehicles.

Consumers generally say they're willing to pay a $1,000 premium for certified vehicles, said Jonathan Banks, J.D. Power vice president of vehicle valuations. The data shows that those who buy CPO vehicles actually end up paying more than that in reality, he said.

In a survey for Automotive News by DealerRater conducted Oct. 22 to 29, recent buyers of CPO vehicles said they were attracted in part by the price vs. a new-vehicle price, plus the more robust inspection and the additional warranty offered on the vehicle.