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Certified Pre-owned Cars - US - August 2015

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
CPO purchase intent is low
Figure 1: Intention to Purchase CPO, May 2015
Economic challenges still affect consumers
The opportunities
CPO cars provide a gateway to luxury brands
Figure 2: Consideration of brands, May 2015
CPO cars can provide peace of mind
Awareness of CPO cars strong, as is consideration
Figure 3: Awareness of CPO cars, May 2015
Awareness of CPO cars strong, as is consideration
Figure 4: Consideration of CPO cars, May 2015
What it means
THE MARKET – WHAT YOU NEED TO KNOW
CPO market is small but growing
Rising consumer expenditures drive the overall used-car market
MARKET SIZE AND FORECAST
CPO market poised to grow
Figure 5: Total US sales of CPO cars, 2010-20
MARKET FACTORS
Economic bounce back could help CPO market
Figure 6: Real gross domestic product and related measures: percent change from preceding period
Consumer expenditures on motor vehicles are increasing
Figure 7: Personal consumption expenditures by major type of product, 2013-15
KEY PLAYERS – WHAT YOU NEED TO KNOW
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?
Lexus, Mercedes-Benz, BMW, Audi outpacing other luxury brands
Toyota garners strong CPO interest
WHAT’S STRUGGLING?
Jaguar, Land Rover, Porsche not generating as much interest
WHAT’S NEXT?
Automakers have an opportunity when it comes to CPO
THE CONSUMER – WHAT YOU NEED TO KNOW
CPO car purchase intention is low
Yet, CPO awareness is high
So is CPO consideration
CPO PURCHASE INTENTION NOT STRONG
New cars are capturing consumer attention
Figure 8: Intention to Purchase CPO, May 2015
Types of vehicles being considered
Figure 9: Type of vehicle considered, May 2015
AWARENESS, CONSIDERATION OF CPO CARS IS HIGH
Consumers are aware of CPO cars, despite purchase intentions
Figure 10: Awareness of CPO cars, May 2015
With solid consumer consideration, CPO segment could present a ripe opportunity
Figure 11: Consideration of CPO cars, May 2015
Higher CPO awareness results in higher CPO consideration
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
Toyota outpaces even luxury brands when it comes to CPO consideration
Figure 13: Consideration of brands, May 2015
PRICE, WARRANTY, MAINTENANCE DRIVE CPO APPEAL
Lower sticker price and the presence of a factory warranty are equally attractive
Figure 14: Appeal of CPO vehicles, May 2015
PARENTS, BLACKS HAVE INTEREST IN CPO
Parents much more interested in CPO cars
Figure 15: Consideration of CPO cars, by demographics, May 2015
Black consumers present an opportunity
Figure 16: Blacks' expected car buying timing, by gender and age, January 2015
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms

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