John Stephens
Executive Vice President
EFG Companies
Experian’s latest State of Auto Finance Market Report made headlines recently, painting a rosy picture for the used-vehicle market. Overall, pre-owned vehicles accounted for 55.61 percent of all financing in Q2 of 2016. Consumers across all credit tiers are flocking to pre-owned vehicles, with super-prime and prime consumers accounting for 44.95 percent of all pre-owned loans – a 2.6 percent year-over-year increase.
Dealers have ample opportunity to capitalize on this market dynamic with CPO programs and F&I products tailored to the pre-owned market.
Remember, the one hurdle pre-owned vehicles have always had to overcome is vehicle reliability. Even in this current market, you can bet vehicle reliability is still a hot button. In addition, those prime and super-prime consumers are used to another level of sophistication when it comes to customer service and they will expect no less when shopping for pre-owned vehicles. This combination makes strong CPO programs market differentiators.