Topic: inventory

Low days’ supply of new inventory driving an increase in CPO sales across brands

Posted by George Augustaitis on July 17, 2020

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.

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Topics: covid-19, CPO, days' supply, industry analysis, inventory