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Certified used cars are all the rage in today's market. After five straight years of sales growth, the market is poised to break new records in 2015. According to industry insiders, dealers should sell more than 2.5 million units this year. Why is this happening? Let's find out. More Dealerships As sales continue to rise, more dealerships are jumping on the certified pre-owned (CPO) bandwagon. Offered by automakers, these programs require the participation of sellers to reach the masses. In fact, it is up to each individual dealership to decide whether they want to certify their used vehicles or not. Because the profit margins are much higher for CPO vehicles than for ordinary second-hand rides, a growing number of dealers are signing up for these programs. Growing Inventory More than a quarter of all new vehicle transactions involve a lease. Because many of these cars and trucks were leased in the last few years, they are now returning to dealerships in record numbers. With an average age of three to five years, these now second-hand autos are eligible for CPO programs. Because demand for certified used cars is at an all-time high, dealers are expected to certify a much larger percentage of these vehicles than ever before. Rising New Car Prices As the economy continues to improve, consumers have more money to spend on big-ticket items. It is no surprise that sales of new automobiles hit a seven-year high in 2015, with 16.5 million, pristine autos sold. It is also no surprise that rising demand has resulted in rising prices. Although the same could be said for CPO vehicles, they are still about 40 percent cheaper, on average, than brand-new rides. Aging U.S. Auto Fleet Americans are driving their automobiles longer than ever. According to a recent report, the average age of U.S. passenger vehicles has reached a record high of 11.4 years. Although some of these autos end up at the junkyard when their owners give up on them, others make their way to used car lots. As a result, shoppers may encounter slim pickings when looking for a quality, second-hand auto in the coming years. Even today, many buyers invest in certified autos for that very reason. The Power Of Advertising After years of promising returns, many of the leading automakers are convinced that CPO vehicles are the future. As such, they are starting to invest heavily in them. General Motors is among the companies that recently poured big bucks into their certified used cars program. With increased competition, dealerships should be able to secure slightly better rates on the certification process. This should help them build larger inventories of these sought-after autos. For all of these reasons and more, the future looks bright for certified used cars in America. To learn more about their options for certified used cars, Harrisburg, PA residents should visit http://www.klicklewiscars.com/VehicleSearchResults?search=preowned.
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