⚡ Market Pulse: CPO is quietly becoming the most valuable inventory on the lot

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Welcome to the CDG Market Pulse—your no-fluff cheatsheet to auto retail, built to help dealers price right, stock smart, and stay ahead.

(Data sourced from ZeroSum’s State of the Dealer Report)

⚡ CPO demand is holding steady as buyers opt for practical options over premium ones.

About 191,000 CPO units sold in April, per ZeroSum.

That’s down only 9,000 units from March, but well above last year’s levels. And you don’t need a whiteboard to see what’s happening.

When new vehicles feel out of reach and non-certified used cars feel like a gamble, CPO hits the sweet spot with reasonable prices, factory-backed inspections, and higher standards.

And dealers expect that trend to stick, especially with tariffs and rate uncertainty in play.

⚡ CPO is the growing value play for dealers in a pricey new car market.

The ZeroSum report also revealed that the average CPO unit was marketed for $37,800 in April.

And with new-car prices pushing $47K+, that $10K gap makes certified pre-owned the more practical choice for payment-focused shoppers.

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⚡ The supply of CPO inventory on dealer lots continues to steadily creep down.

CPO days’ supply dropped to 40 days in April, down from March (43) and a year ago (41), per ZeroSum.

Simply put: cars are selling faster than they’re being replaced. And lease returns aren’t filling the gap—an issue Cox Automotive says will hold true until at least 2026.

⚡ Total used inventory is also thinning, which means every clean unit is vital for dealers.

There were 1.89 million used units available in April—low by recent standards.

And that squeeze makes every clean trade more valuable and every missed opportunity more expensive.

CPOs are often treated like a fallback. But the savviest dealers understand the serious profit potential these units carry.

For many buyers, certified is the first stop—priced below new, backed by warranty, and less of a risk than traditional used.

That rising demand, though, is running straight into a supply wall.

Which means CPO has quickly become the dealership’s MVP (most valuable product).

And that the consistency on the sourcing side lets his team focus on the other half of the job: getting in front of buyers early—aka sending a CPO inventory blast to their email list every Monday.

Not required. But keeps customers looped in before they even start shopping.

He credits GM’s CarBravo platform—which allows non-GM units to be certified (pretends to be shocked…) But also stressed that OEM tools alone aren’t what move the needle.

It takes OEM tools + innovative execution, like using ChatGPT to write SEO-optimized used car listings that rank better and convert faster, he told CDG.

The signal: Buyers already believe in CPO. Dealers just need to close the loop on price, warranty, and visibility.

Even with inventory tight, CPO is still one of the most profitable plays on the lot.

And the dealers moving volume aren’t just sourcing smarter—they’re merchandising with intent.

That means:

• Dedicated CPO sections on the dealership homepage

• Weekly emails with units priced under $30K or sub-$500/month

• Real-time price updates tied to vAuto, or whichever market tool you have

• Clear warranty callouts on every VDP and lot sticker

Don’t wait for interest. Create it.

Thanks for reading everyone.

— CDG