Sales and awareness of certified pre-owned vehicles continue to increase, despite competition from aggressive new-vehicle incentives, according to the JD Power and Associates 2003 used vehicle sales and certification study.
Go deeper with GlobalData
The study, which measures the satisfaction and experiences of owners of late-model used vehicles that have undergone a dealership certification process, finds that sales of certified pre-owned (CPO) vehicles has increased to 38% – up 3% over 2002. Consumer awareness of CPO programs also continues to increase. 57% of all used-vehicle buyers are now familiar with the programs before beginning the shopping process — up from 54% in 2002.
“The late-model used-vehicle market has been directly affected by the heavy use of incentives over the past two years as potential buyers are lured by the alternative of purchasing a new vehicle,” said a JD Power spokesman. “Yet, the market for certified pre-owned vehicles continues to grow.”
The study finds that CPO buyers are more satisfied with their vehicles and the dealership sales experience than are non-certified buyers. In turn, CPO buyers indicate a much higher likelihood to return to the selling dealership for repairs, routine maintenance and future purchases.
On average, luxury buyers paid nearly $US3,000 more for their certified used vehicle than did buyers of non-certified luxury brands, while non-luxury buyers paid $1,000 more.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFor the second year in a row, the Lexus certified pre-owned programme ranks highest in customer satisfaction by a substantial margin. Lexus tops the industry in areas such as shopping experience and vehicle quality, as well as programme features accompanying certification.
