After October marked the first year-over-year dip in certified pre-owned sales in three months, the CPO market moved back into the black during November, posting a 9-percent improvement over the year-ago period and keeping the year-to-date pace well ahead of 2010.
Although CPO sales fell 1.2 percent sequentially, they climbed from 126,519 units sold in November 2010 to 137,850 certified sales last month, according to Autodata Corp.
This pushed the year-to-date total to 1.58 million, a 5.7-percent hike compared to the same period of 2010.
Amid this robust market, several automakers shared with Auto Remarketing how they achieved such strong months while also revealing what they see for the close of 2011.
One of those automakers was Kia, which notched yet another best-ever mark for CPO sales, moving 1,211 units. This marked a 111-percent improvement over November 2010 and pushed the year-to-date sum to 8,763 CPO sales (up 35.2 percent).
“Kia dealers are benefiting from increased auction inventory as the daily rental companies begin to de-fleet model-year 2011s for the new model-years 2012s,” said David Carp, director of fleet and remarketing at Kia Motors America
“We are confident we will break the 10,000-unit mark for 2011, which will mark five consecutive months of all-time CPO records at Kia,” he added.
Volkswagen — which already bested 2010 full-year sales months ago — achieved a 16.1-percent hike for November CPO sales (5,339 units), and its year-to-date sales have jumped 32.8 percent at 66, 827units sold.
In order to generate the inventory needed to achieve such strong gains, VW has turned to a new sourcing technique in the fourth quarter, and it appears the strategy is working, says general manager of pre-owned operations Scott Weitzman.
“VW had another strong month in CPO. We exceeded the 2010 total-year numbers back in September and our internal goals in October. Our dealers are more engaged than they have ever been and are generating record profits in the used-car arena,” Weitzman noted.
“We initiated a VW-backed trade-in program for the fourth quarter and have seen a significant influx of certifiable cars traded in by consumers since October. In fact, more than 1,500 CPO-eligible units have been traded in on dealer lots since October,” he continued.
“All of these units were pulled ahead from 2012 and beyond, when the lease or contract expiration would have normally occurred. Customers were offered $500 toward the purchase of a new VW if they traded-in early,” Weitzman added.
Over at Toyota, its dealers sold 24,912 CPO rides, up slightly from 24,710 certified sales in November 2010. Year-to-date sales have reached 302,742 units, compared to 288,239 CPO sales in the year-ago period.
Toyota anticipates 2011 will end up being its strongest year ever for CPO.
“Through November, we have surpassed 300,000 TCUV sales for a second year in a row,” said Brad Heagy, retail sales and operations manager for TCUV/TRAC.
“Given our strong dealership business partner commitments to the TCUV brand, we anticipate continued sales momentum through December to finish the year more than 10,000 units above last year's best-ever sales record of 315,440,” he continued.
Heagy added that the 2.9 percent APR /60-month TCUV financing offer will continue through Jan. 3.
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