Historically, consumers have turned to the used vehicle market during recessionary times as an alternative to a new vehicle purchase. That’s because used cars tend to be more affordable, allowing consumers to avoid the burden of a high monthly payment when money might be tight.
But there’s another factor driving the current shift to the used vehicle market—in particular, Certified Pre-Owned vehicles (CPOs)—and that’s low days’ supply of new inventory. The shortage of new vehicles is a result of plants remaining closed, and it’s making it difficult for consumers to find the specific new cars they want. While new and used vehicle sales posted double-digit losses in June, CPO sales posted an increase of 8.5% as compared to June 2019.
When it comes to researching and buying a car, CPO buyers are all about being informed and getting their questions answered before making a decision, according to the 2019 CarGurus Buyer Insights Report. They spend hours researching and comparing their options, relying on online resources and experts to give them the confidence they need to purchase a vehicle.