Here’s an opportunity dealers might be missing: consumers are willing to pay more for CPO than you think.

On average, a consumer would shell out $3,000 more on a certified pre-owned car than a non-CPO version of the same car, according to the Cox Automotive 2016 CPO Study.

But here’s the thing.

Dealers think they will only pay $1,260 more.

This underestimate, Cox Automotive says, shows that dealers are perhaps leaving some cash on the table.

Another missed opportunity? CPO sales are still a very small part of franchised dealers’ used-car business.

Citing 2010 through September 2016 rolling year-to-date data from NADA and Autodata/Motor Intelligence, Cox Automotive indicates that certified represents less than a quarter of franchised dealer pre-owned sales.

“CPO vehicles are a smart investment for any dealership,” said Scott Hernalsteen, senior director of research and market intelligence for Cox Automotive Media Group. “That said, CPO only accounts for 21 percent of used-vehicle sales at franchise dealerships.

“This study proves that CPO vehicles are especially valuable for today’s consumers, and should encourage dealers to take advantage of untapped CPO opportunities.”

The CPO market could reach its sixth straight year of record sales. And it might not be done.

Cox Automotive found that there are currently 3 million consumers who are interested in CPO. But that number could grow to 5.2 million.

Citing 2008 through September 2016 rolling year-to-date data from IHS/PolkInsight, Cox Automotive said one driver for this interest is the 4.6 million leases projected to end between now and 2020.

“Dealers who convert lessees into CPO customers — and certify returning vehicles before putting them up for sale — can harness the sales and profit that come with CPO vehicles,” the company said in a news release. “Dealers who also precisely match inventory to their market and deliver exceptional customer experience could see CPO sales grow exponentially.”

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