Certified pre-owned vehicle sales accounted for 22.7 percent of used sales by dealers, setting a record for a single quarter, according to a report by Edmund's.com. Overall, the sale of used vehicles came in strong in the second quarter of 2015 at approximately $9.6 million, growing at a 5.1 percent year-over-year.
Key findings of the Used Vehicle Market Report suggest that more buyers are choosing newer off-lease vehicles and certified pre-owned (CPO) programs.
Nearly 30 percent of used vehicle purchases involved a trade-in, with over 8.5 million vehicles expected to be traded-in for a new vehicle purchase.
CPO sales continue to have a meaningful impact on the used car market. In Q2 2015, dealers sold over 660,000 vehicles through CPO programs, the highest-ever volume for a single quarter. CPO sales accounted for 22.7 percent of used sales by dealers, another record for a single quarter.
Edmunds' analysis found that the average used car price hit a record high of $18,800 in the second quarter, up 7.6 percent – or $1,300 per vehicle – from the second quarter of 2014. Meanwhile, the average age of used cars sold in Q2 2015 was 4.5 years, down from an average of 4.9 years the same time last year.
The reports also provided insight on other grow areas in used car sales including the rising price of pickup trucks, the average amount financed on a used car climbing by three percent from last year to $20,732; and the growth of loan terms to offset higher average prices. For the first time since before the recession, average APRs on used car loans are climbing.
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