Record CPO Sales in February 2023: What’s Driving the Growth and What Dealers Can Do to Capitalize on It

The automotive industry experienced a surge in demand for certified pre-owned (CPO) vehicles in February 2023, marking an all-time high in CPO sales. This trend is a positive sign for dealerships and the economy, indicating that consumers are confident in purchasing pre-owned vehicles.

 But what exactly is driving this growth, and how can dealerships capitalize on this trend to further boost their sales? In this blog, we will delve into the factors behind the record CPO sales and explore dealerships’ strategies to leverage this trend and stay ahead in the highly competitive automotive market.

What’s driving the growth in CPO sales? 

 The unprecedented surge in CPO sales in February 2023 reflects the changing consumer behavior and preferences. Several factors are driving this growth, such as rising consumer confidence, strong economic indicators, and a shift in the preference towards used cars.

 According to Cox Automotive, “Consumers are finding better value in used cars, especially with the availability of high-quality CPO programs.” Furthermore, many consumers are also looking to save money on their car purchases, and CPO vehicles offer them an opportunity to buy a like-new car at a lower price than a new one.

The benefits of buying a CPO vehicle 

The surge in CPO sales is also attributed to the benefits of buying a certified pre-owned vehicle. First, CPO vehicles offer buyers a great deal of assurance and peace of mind. These vehicles undergo rigorous inspection and come with a manufacturer’s warranty.

 Therefore, the buyer can be confident in the quality and reliability of the car they are purchasing. Second, pre-owned vehicles are usually priced lower than their new counterparts, but they come with many of the same features and benefits. Therefore, buyers can enjoy a higher-end car for a lower price.

What Dealers Can Do to Capitalize on the CPO Sales Growth

Dealerships can take advantage of the current trend of increasing CPO sales to boost their revenue and profitability. Here are a few steps that dealerships can take to capitalize on the sales growth:

1.  Invest in CPO Programs: Dealerships should focus on creating vital CPO programs offering consumers high-quality certified vehicles. It includes ensuring that their certification process meets manufacturer standards and providing customers with attractive warranties and service contracts.
2. Market CPO Vehicles Effectively: Dealerships should also focus on effectively marketing their CPO vehicles to attract consumers. This includes highlighting the benefits of buying a certified pre-owned vehicle and showcasing the certification process to build consumer trust.
3. Offer Competitive Financing: Dealerships can offer competitive financing options to make CPO vehicles more accessible to buyers. This includes providing low-interest rates and flexible payment plans that cater to the needs of consumers.
4. Embrace Technology: In today’s world, technology is essential to any successful business. As the automotive industry evolves, dealerships embracing technology will be better positioned to capitalize on the growing CPO sales trend. 

 Automation solutions like Cognitgo’s ROBot can help dealerships streamline their processes and increase efficiency, allowing them to focus on providing top-notch customer service. With ROBot, dealerships can automatically identify potential selling or trade-in opportunities within their service drive and reach out to customers before competitors do.

 By leveraging the power of automation, dealerships can free up their staff to focus on other critical tasks and provide an exceptional customer experience that will keep customers returning for more. By taking these steps, dealerships can capitalize on the growing demand for CPO vehicles and boost their sales and profitability.