AutoTrader.com: SUVs, Trucks Show Strong CPO Price Gains

December 11, 2009

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ATLANTA — Prices for many certified pre-owned vehicles continued to move upward in November, especially trucks and SUVs, with some models showing increases in the neighborhood of 23 percent, according to AutoTrader.com.

These price gains were pushed by a growth in demand for CPO units as well as supply shortages, officials noted.

Among the 20 most-viewed certified vehicles on AutoTrader.com, the ones showing the heaviest price increases from a year ago were the Chevrolet Tahoe (up 23.33 percent), the GMC Sierra 1500 (up 23.17 percent) and the Chevrolet Silverado 1500 (22.37 percent).

"As awareness of certified pre-owned programs and the benefits offered continues to grow, a greater number of consumers will continue to opt for these vehicles in lieu of a traditional used or new vehicle," explained Chip Perry, AutoTrader.com president and chief executive officer.

"At the same time, because many CPO vehicles are off-lease cars and a lot of the leasing activity dried up as a result of the credit crunch or the past two years, there are fewer cars available via this channel," he continued. "As a result of these trends, we may see continued increases in the prices for CPO cars."

Moving on, AutoTrader.com noted that overall traffic to the site has "steadily" move forward this year, and climbed to 13.5 million visitors during November, a 5-percent increase from the year-ago period.

"The migration of shoppers to the Internet to search for new and used vehicles, combined with the general recovery of the automotive marketplace, is a boon for both manufacturers and dealers," Perry pointed out.

"The Internet offers both the OEM and the retailer an effective, efficient way to reach the largest number of in-market shoppers at any given moment with the latest information consumers seek when making a purchase," he continued.

The most-viewed used vehicle on the site during November was, once again, the Ford F-150, followed by the BMW 3-Series, Silverado 1500, Ford Mustang and Ford F-250, respectively.

As far as CPO units, the most popular models were, respectively, the 3-Series, Honda Accord, Silverado 1500, Chevrolet Tahoe and Toyota Tundra, which was the same order for October.

On the new-vehicle side, the F-150 was the most-searched, as well, as views for the truck climbed 15 percent.

The Accord was No. 2, followed by the Toyota Camry, Silverado 1500 and Honda Civic in spots Nos. 3-5.

AutoTrader.com also pointed out that that increases in new-car shopping activity for most OEMs during November, and asking prices were up, as well.

Officials said many shoppers were enticed by new offerings by automakers. Some of the new models from OEMs included the Chevrolet Traverse, which had more than a 90-percent year-over-year traffic spike, and the Ford Fusion, which climbed to No. 12 on the list of most-viewed models, up 11 spots from October.

"After the wild ride of the 2009, manufacturers, dealers and consumers alike are starting to see inventories and prices normalize," Perry stated. "More importantly, consumers are generally beginning to open their wallets again, and are moving forward with that new vehicle purchase that they had been delaying up until now."