Table of Contents
Executive Summary
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- The issues
- CPO purchase intent is low
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- Figure 1: Intention to Purchase CPO, May 2015
- Economic challenges still affect consumers
- The opportunities
- CPO cars provide a gateway to luxury brands
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- Figure 2: Consideration of brands, May 2015
- CPO cars can provide peace of mind
- Awareness of CPO cars strong, as is consideration
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- Figure 3: Awareness of CPO cars, May 2015
- Awareness of CPO cars strong, as is consideration
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- Figure 4: Consideration of CPO cars, May 2015
- What it means
The Market – What You Need to Know
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- CPO market is small but growing
- Rising consumer expenditures drive the overall used-car market
Market Size and Forecast
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- CPO market poised to grow
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- Figure 5: Total US sales of CPO cars, 2010-20
Market Factors
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- Economic bounce back could help CPO market
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- Figure 6: Real gross domestic product and related measures: percent change from preceding period
- Consumer expenditures on motor vehicles are increasing
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- Figure 7: Personal consumption expenditures by major type of product, 2013-15
Key Players – What You Need to Know
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- Luxury brands are strong when it comes to brand consideration
- Toyota garners high interest when it comes to CPO cars
- CarMax is an outlier in the CPO world
What’s Working?
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- Lexus, Mercedes-Benz, BMW, Audi outpacing other luxury brands
- Toyota garners strong CPO interest
What’s Struggling?
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- Jaguar, Land Rover, Porsche not generating as much interest
What’s Next?
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- Automakers have an opportunity when it comes to CPO
The Consumer – What You Need to Know
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- CPO car purchase intention is low
- Yet, CPO awareness is high
- So is CPO consideration
CPO Purchase Intention Not Strong
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- New cars are capturing consumer attention
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- Figure 8: Intention to Purchase CPO, May 2015
- Types of vehicles being considered
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- Figure 9: Type of vehicle considered, May 2015
Awareness, Consideration of CPO Cars is High
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- Consumers are aware of CPO cars, despite purchase intentions
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- Figure 10: Awareness of CPO cars, May 2015
- With solid consumer consideration, CPO segment could present a ripe opportunity
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- Figure 11: Consideration of CPO cars, May 2015
- Higher CPO awareness results in higher CPO consideration
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- Figure 12: Consideration of CPO cars – Rebased to those who have heard of CPO vehicle programs, May 2015
Toyota and Luxury Brands Are Heavily Considered
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- Toyota outpaces even luxury brands when it comes to CPO consideration
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- Figure 13: Consideration of brands, May 2015
Price, Warranty, Maintenance Drive CPO Appeal
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- Lower sticker price and the presence of a factory warranty are equally attractive
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- Figure 14: Appeal of CPO vehicles, May 2015
Parents, Blacks Have Interest in CPO
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- Parents much more interested in CPO cars
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- Figure 15: Consideration of CPO cars, by demographics, May 2015
- Black consumers present an opportunity
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- Figure 16: Blacks' expected car buying timing, by gender and age, January 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
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