2021
9
US CPO and Used Vehicles Market Report 2021
2021-09-09T04:13:49+01:00
OX1044817
3695
142246
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Report
en_GB
“The used/CPO car market is experiencing quite an impact as a result of COVID-19. While some consumers are delaying their car purchasing plans, a shortage in new vehicle production has…

US CPO and Used Vehicles Market Report 2021

£ 3,695 (Excl.Tax)

Description

“The used/CPO car market is experiencing quite an impact as a result of COVID-19. While some consumers are delaying their car purchasing plans, a shortage in new vehicle production has caused an increase in demand for previously owned vehicles. Moving forward, in addition to highlighting value in its various forms, automakers and used car retailers can look to engage and educate consumers and focus on instilling confidence in their ability to navigate the process – whenever they are ready to do so.”
– Vince DiGirolamo, Reports Director

This Report covers the following areas:

  • The impact of COVID-19 on consumer behavior and the used/CPO vehicle market
  • When consumers intend to buy; how much they intend to spend
  • Consumer familiarity and understanding of CPO
  • Important factors when shopping used/CPO

Table of Contents

  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Definition
    • Economic and other assumptions
    • COVID-19: US context
  2. Executive Summary

    • Top takeaways
    • Market overview
      • Figure 1: Total US unit sales and fan chart forecast of used and certified pre-owned light vehicles, 2016-26
    • Impact of COVID-19 on used/CPO vehicles
      • Figure 2: Short-, medium- and long-term impact of COVID-19 on used/CPO vehicles, 2021
    • Opportunities and challenges
    • Increased demand leads to inventory shortages and increasing prices
    • Incorporate tech and social commerce into shopping process
    • Explore cross-category partnerships
    • Allow ways for consumers to help consumers
    • Help consumers feel good about where they shop
  3. The Market – Key Takeaways

    • Demand will remain for used car options; new vehicle production will have domino effect
    • Used car prices reach all-time high
  4. Market Size and Forecast

    • Used cars will remain in demand moving forward
      • Figure 3: Total US unit sales and fan chart forecast of used and certified pre-owned light vehicles, 2016-26
      • Figure 4: Total US unit sales and forecast of used and certified pre-owned light vehicles, 2016-26
    • Impact of COVID-19 on used and CPO vehicles
  5. Market Factors

    • Surge in used vehicle pricing may cause some shoppers to hit the brakes
      • Figure 5: Consumer Price Index for all urban consumers: used cars and trucks in US city average, 2011-2021
    • Unemployment and consumer confidence will impact how consumers shop the market
      • Figure 6: Consumer confidence and unemployment, 2000-2021
  6. Companies and Brands – Key Takeaways

    • Brands take aim at education, confidence and compassion
    • Explore opportunities to increase reach and awareness
  7. Competitive Strategies

    • Ford’s focused on helping consumers shop certified vehicles
      • Figure 7: Ford dealer promotes Ford Blue Advantage
    • CarMax aims to provide confidence and reassurance
      • Figure 8: CarMax Love Your Car Guarantee
    • Carvana cares and aims to make a positive impact
      • Figure 9: Carvana covers pet adoption fees
  8. Market Opportunities

    • Incorporate tech and social commerce into the shopping process
    • Explore cross-category partnerships
    • Create connections between consumers
    • Help consumers feel good about where they shop
  9. The Consumer – Key Takeaways

    • Be a partner to consumers to provide confidence and reassurance
    • Consumers will look to stay within their expected spending budgets
    • Various factors are considered when shopping for a used/CPO vehicle
  10. Purchase Time Frame and Type of Purchase

    • Playing the long game: create connections and build confidence with consumers
      • Figure 10: Consumer car purchasing time line, 2021
    • Younger consumers most driven to buy soon; females and older consumers more willing to wait
      • Figure 11: Consumer car purchasing time line, by gender and age, 2021
      • Figure 12: Carvana, Honda City Chicago look to buy current vehicles
    • Consumers consider new but may take an alternate route when it comes time to purchase
      • Figure 13: Vehicle purchase consideration, by generation, 2021
  11. Price Expectations

    • Consumers are looking to invest but not overspend on their next car
      • Figure 14: Consumer pricing expectations for their next car purchase, 2021
      • Figure 15: Cars.com offers budget calculator
    • Younger females know what they want to spend
      • Figure 16: Consumer pricing expectations for next car purchase, by gender and age, 2021
    • Keeping multicultural consumers engaged until the time and price are right
      • Figure 17: Consumer pricing expectations for their next car purchase, by race and ethnicity, 2021
  12. Consumer Familiarity with CPO Vehicles

    • Consumers don’t know CPO
      • Figure 18: Consumer knowledge of CPO programs, 2021
      • Figure 19: Romeoville Toyota educates consumers on CPO
      • Figure 20: Wendle Ford highlights CPO benefits and available inventory
    • The need for education spans demographics
      • Figure 21: Infiniti CPO-focused direct mail
      • Figure 22: Knowledge in CPO programs, by gender and age, 2021
      • Figure 23: Knowledge in CPO programs, by race and ethnicity, 2021
  13. Sources of Information

    • Help consumers build confidence in themselves
      • Figure 24: Source familiarity, 2021
      • Figure 25: CARFAX explains various CPO offerings and benefits
      • Figure 26: TrueCar educates consumers on car price increases
    • The road ahead focuses on digital efforts
      • Figure 27: Source familiarity, by age, 2021
      • Figure 28: Pathmatics monthly spend among top sources
  14. Important Factors When Shopping Used/CPO

    • Peace of mind, money and mileage matter most to car buyers
      • Figure 29: Important factors when buying a used/CPO car, 2021
      • Figure 30: Important factors when buying a used/CPO car, ranked, 2021
    • Shift gears of focus when targeting across genders
      • Figure 31: Important factors when buying a used/CPO car, by gender, 2021
  15. Attitudes toward Used and CPO Vehicles

    • A hassle-free, informed shopping experience
      • Figure 32: BMW dealership educates consumers on CPO offering
      • Figure 33: Attitudes toward used/CPO vehicles, 2021
      • Figure 34: Attitudes toward used/CPO vehicles, by gender and age, 2021
    • If you explain it, they will spend
      • Figure 35: Attitudes toward used/CPO vehicles, 2021
      • Figure 36: Attitudes toward used/CPO vehicles, by gender and age, 2021
  16. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast
    • Consumer survey data
    • Marketing creative
    • Abbreviations and terms
    • Abbreviations
  17. Appendix – The Market

      • Figure 37: Total US unit sales and fan chart forecast of used light vehicles (excluding CPO), 2016-26
      • Figure 38: Total US unit sales and fan chart forecast of certified pre-owned used light vehicles, 2016-26
  18. Appendix – The Consumer

      • Figure 39: Vehicle purchase consideration, by race/ethnicity, 2021
      • Figure 40: Attitudes toward used/CPO vehicles, by household income, 2021

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

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Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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