SANTA MONICA, Calif., Dec. 9, 2015 /PRNewswire/ -- An overwhelming majority of used car shoppers say that they would be willing to pay more for a certified pre-owned (CPO) vehicle, according to the results of a survey released today by car shopping destination Edmunds.com. The findings come at a time when CPO sales are at their highest all-time levels, and are expected by Edmunds analysts to continue to grow in the coming year.
According to the survey, 88 percent of the 2,017 adults polled said that if they were to consider a used car, they would be willing to pay more for a certified pre-owned vehicle. Among these potential CPO shoppers, 37.8 percent said that they would spend up to an additional $1,000 for the benefits of a CPO vehicle, while an additional 36.9 percent said that they would be willing to spend up to $500 more.
While programs can vary from manufacturer to manufacturer, a certified pre-owned vehicle is generally defined as a used vehicle that has undergone a minimum 100-point inspection in which any mechanical and body issues are addressed. The vehicles also are generally accompanied by a manufacturer-backed warranty and may include other benefits such as free maintenance, 24/7 roadside assistance and low-APR financing. These CPO benefits come at an added cost that is typically baked into the price of the vehicle. Edmunds.com data estimates that CPO vehicles are $1,400 more expensive, on average, than similar non-CPO vehicles.
"More and more shoppers are opening their eyes to the benefits of certified pre-owned vehicles," says Edmunds.com Director of Industry Analysis Jessica Caldwell. "These cars offer a unique value proposition to shoppers who want to pay used car prices but demand the peace of mind that comes with a new car purchase. And while CPO used to be associated only with expensive luxury brands, we've seen every mainstream brand get into the game in recent years. With more near-new cars coming off lease and making up a larger chunk of used car supply, shoppers can expect even more CPO vehicles on dealer lots in the coming months and years."
According to Edmunds.com's Q3 2015 Used Vehicle Market Report published today, certified pre-owned cars accounted for nearly 22 percent of used car purchases at franchise dealerships from July through September. That is the largest CPO share of any third quarter, and an increase from 18.4% of all franchise used car transactions in Q3 2010.
The holiday season is an especially strong time for CPO sales. Edmunds analysts found that in seven of the last eight years, December delivered a higher share of CPO sales than in any other month. Last December, CPO sales made up an estimated 24 percent of franchise used car sales, the second highest share for any single month on record (behind the 25 percent share registered in May 2015).
Late last month, Edmunds.com editors named Hyundai as the automaker with the best current CPO program, thanks in large part to its 10-year powertrain warranty. Shoppers can see Edmunds' picks for the "Ten Best Certified Pre-Owned Programs" at http://www.edmunds.com/car-buying/10-best-certified-pre-owned-car-programs.html.
Edmunds.com makes it easy for all shoppers to make side-by-side comparisons for each manufacturer's CPO program at http://www.edmunds.com/certified-cars/compare-program.html.
Edmunds.com's survey of consumer attitudes toward CPO and other car shopping trends was conducted in November 2015 by market research firm Instantly, Inc. The online survey included responses from a sample of 2,017 adults age 18 and over, representative of income and geographic distribution across the United States.
About Edmunds.com, Inc.
Car shopping destination Edmunds.com serves nearly 20 million visitors each month. With Edmunds.com Price Promise®, shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at 10,000 dealer franchises across the U.S. Shoppers can browse not only dealer inventory, but also vehicle reviews, shopping tips, photos, videos and feature stories on both Edmunds' wired site and on its acclaimed mobile apps. Regarded as one of the best places to work in Southern California, Edmunds.com was also named one of "The World's Top 10 Most Innovative Companies of 2015 in Automotive" by Fast Company. Edmunds welcomes all car-shopping questions on its free Live Help Line at 1-855-782-4711 and email@example.com, via text at ED411 and on Twitter and Facebook. The company is based in Santa Monica, Calif. and has a satellite office in downtown Detroit, Mich., but you can find Edmunds from anywhere on YouTube, Pinterest, LinkedIn, Instagram, Google+ and Flipboard.