CNW Research: CPO Primed for Big 2014
Bandon, Ore. — With nearly three million leased vehicles set to expire in 2014, CNW Research reported that the certified pre-owned (CPO) market should have a solid year with excellent supply and reasonably high-quality returns.
The market research firm said there will be about 45,900 12-month leases expiring in 2014, with about 39,795 of that total being vehicles of “sufficient quality and model type to be prime CPO contenders.”
“Including all leases — about three million — ending in 2014, CNW estimates that 1.33 million will have been maintained sufficiently well and have acceptable mileage to be fodder for the CPO market,” wrote CNW’s Art Spinella in the firm’s monthly e-newsletter.
Spinella also noted significant shifts in the length of leases. “In 1990, for example, about 17% of all leases — mostly at Ford — were 24-month contracts, while financial institutions gravitated toward the long five-year contracts. In 1990, 29% of leases were 60 months.
“The recession caused a slight bulge in 60-month leases, as worried consumers elected to go for a longer term and lower monthly payment,” Spinella continued. “That, however, has revered, and in 2013, only 10% of leases are five-year deals, continuing the pre-recession trend of shorter terms.”
Spinella also noted that with leasing capturing a 30% share in December, the next five years will see 14 million off-lease cars and trucks returning — even if OEMs were to put a halt to leasing today. “Of those, six million would be CPO candidates,” Spinella noted.
More Industry

Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →