What you need to know
CPO (certified pre-owned) vehicles are used vehicles that have been certified by an auto manufacturer or dealership to meet specific quality criteria. Certification gives car shoppers assurances as to the quality of the used vehicle that was purchased and the vehicles typically come at a higher price point than a standard used car. Market factors signal an increase in CPO inventory in the near future, so brands and dealerships will need to increase marketing to off-load the additional inventory.
Definition
For the purposes of this Report, Mintel has used the following definitions:
This Report examines the US market for certified pre-owned (CPO) vehicles. Mintel defines CPO vehicles as:
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Pre-owned vehicles certified by either the manufacturer or a dealership to meet a specified standard of condition
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Standards of conditions vary between manufacturers and dealerships but often include:
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Mileage limits
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Age limits
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Passing grade on a multipoint inspection
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Factory-based warranties.
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Franchised dealerships are defined as a new-car dealership that has a franchise agreement with a major automotive manufacturer.
This Report builds on the analysis presented in Mintel’s Certified Pre-Owned Cars – US, August 2015.
