Edmunds reinforces CPO value proposition going into Memorial Day weekend

If your dealership actually has a plentiful amount of certified pre-owned inventory to retail this Memorial Day weekend, the experts at Edmunds are steering potential buyers toward it — especially if that customer isn’t interested in waiting for a new model to arrive from the factory.

“If you’re a habitual new-car buyer, certified pre-owned inventory might be a good place to look in today’s tight new-vehicle market,” Edmunds senior manager of insights Ivan Drury said in a news release distributed on Tuesday.

“With CPOs, you’ll likely receive subvented interest rate offers, together with ‘peace of mind’ warranties. Plus, unlike five to 10 years ago, today’s CPOs are likely to have many of the creature comforts you’d look for in the new car market, like Apple CarPlay and backup cameras,” Drury continued.

Edmunds analysts also noted that a growing number of consumers are being forced into the used-vehicle market compared to years past as a result of supply constraints and elevated prices for new vehicles.

Edmunds data reveals that in April, 45% of consumers who made a vehicle purchase with a trade-in bought a used vehicle, compared to 35% in April of 2021 and 38% in April of 2020.

“Memorial Day weekend 2022 is not going to present as many discounts or incentives for car shoppers as years past, so consumers need to set their expectations accordingly,” Drury said.

“And regardless of preferences or even budget, most car shoppers should be prepared to buy used this summer holiday weekend since they might not find many new options available,” he went on to say.

Sounds like CPO could be the way to go, especially in light of the financing data Edmunds also shared:

Financed Used Vehicles Averaging the Lowest APRs

May 2022

Source: Edmunds