After an extended period of limited inventory, the selection of certified pre-owned inventory grew by 4% in the past three months, according to data from Catalyst IQ, bringing new opportunities for dealers to meet the needs of consumers.
Driving the news: Following the pandemic and the decline in lease returns, options for CPOs dwindled to 2.5 million in 2024, according to estimates by Cox Automotive.
Sales rebounded last year, reaching 2.61 million.
This year, CPO sales are up 10% year-over-year.
Zooming in: Catalyst IQ data shows that CPO inventory has started to rebound since hitting a low point at the start of 2026 at 205,000.
At the end of the third quarter, inventory was at 223,000, nearly the same as the same point in 2025.
The number of vehicles moved per day was 5,554 for the third quarter, with the past three quarters being in the mid-5,000s.
Opportunity in the segment: Certified pre-owned vehicles took 46 days to move in the third quarter and brought in $40,600.
CPOs had an 8% greater turn rate than used vehicles, according to data from Catalyst IQ at 75%.
However, in a selected 90-day period ending in mid-October, the inventory growth outpaced sales.
“CPO inventory has grown by 4% in the past 90 days, but vehicle movement has increased by just 1%,” Rick Wainschel, Vice President of Analytics at Catalyst IQ told CDG News. “Turn rate, as a result, is down 2 points versus the prior period.”
Deeper dive: Wainschel noted the striking regional differences in turn rate trajectories, with the Western U.S. seeing CPO turn rate increases, while the Midwest and Northeast exhibiting downturns.
California had a 1.79% improvement in turn rate in the past 90 days, the best among the 15 states with the most CPO inventory.
Illustrating Wainschel’s point, Wisconsin and Minnesota had the biggest downturn in turn rates at 6.24- and 4.06-point drops.
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Differences by brands: Among brands, Mercedes-Benz improved by 1.45% in turn rate.
Jeep followed with a 1.8% improvement and Nissan 1%.
On the opposite end, Mazda saw an 8.8% decline and Lexus 8.17.
As far as individual models, the BMW i4 saw a 28.6% jump in vehicles moved and a 17.3-point jump in turn rate.
The Acura Integra, Volvo XC40, and Cadillac LYRIQ also had double-digit moves in turn rates.
“EVs and luxury makes/models are leading the gainers,” Wainschel said. “This makes sense given the current affordability and gas price trends, as well as the continued move away from federal policies supporting the purchase of new EVs.”
Bottom line: As shoppers are looking for affordable options with a warranty, CPOs present an opportunity for dealers. The average CPO in Q3 was listed at $40,600, which was $11,300 more than the average used vehicle. The days-to-move were also comparable at 42 for used and 46 for CPOs.
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