When the final tally comes in for 2014, annual certified pre-owned sales are likely to have notched another all-time high, according to NADA Used Car Guide, which is forecasting “meaningful growth” in this blossoming market segment in coming years.

These expected gains, detailed in the latest NADA Perspective report, are driven by the fact that both supply and consumer appetite for CPO cars are “moving solidly in the right direction.”

NADA believes there is “huge potential” for this market to continue growing, considering that these cars make up about 13 percent of franchised dealers’ used-vehicle sales. Through the first third of the year, certified sales are outpacing the record year from 2013 (when a best-ever 2.1 million CPO cars were sold) by 11 percent.

But these projected increases come with some stipulations and calls to action. For one, it’s about educating the consumer. The AutoTrader.com data that NADA cited in the report illustrates as much. 

AutoTrader’s 2013 study titled Certified Pre-Owned: Understanding the Customer points to great unfamiliarity among consumers about what the CPO process on a car entails. Citing the study, NADA indicates that over a third of new-car shoppers and about a third of used-car shoppers (32 percent) did not know that CPO cars came with complete inspections.

Furthermore, nearly half of both new-car shoppers (45 percent) and used-car shoppers (46 percent) were unaware of the extended warranty on certified vehicles.

And this, the report says, may shed some light on why many consumers won’t shell out more money for the premium that CPO cars command — not only that, this lack of information is likely the top road block for certified’s potentially meteoric growth.

“In the end, cultivating consumer familiarity and understanding will play a lead role in dictating how quickly and how high CPO sales grow,” the NADA report emphasizes in its conclusion.

Elsewhere in the conclusion to the Perspective issue, analysts hammer home these points as to what has to happen in order for the certified market to take advantage of awaiting opportunity: “To ensure this opportunity is maximized, manufacturers will need to enhance marketing efforts to clearly outline to consumers all that certification entails.

“The substantial benefits associated with buying CPO — the rigorous reconditioning, extended warranty coverage and peace of mind that the vehicle is backed by the factory and its dealer partners — should make the task less challenging,” NADA said.

“Having a better understanding of CPO premiums should help support certified consideration as well, especially since CPO premiums deemed tolerable by consumers are above current sales levels,” it added. “In addition, consumers who currently believe they can’t afford a CPO vehicle might reconsider if they had a realistic idea as to what the additional cost would be and the relative value of benefits for which they would be paying.”

In fact, the AutoTrader data shows that peace-of-mind is the top reason people consider going with a CPO ride, followed by the extended warranty offered on CPO cars.  NADA emphasizes these two points go “hand-in-hand,” hence where greater education might go a long way.