Certified Pre-Owned Values Added to NADA Used Car Guide
NADA has added manufacturer-certified pre-owned values to the print and electronic editions of its Used Car Guide.
“We recognize the tremendous effort that manufacturers and new-car dealers have put into developing and raising consumer awareness of CPO programs,” said Mike Stanton, vice president and chief operating officer of the NADA Used Car Guide, in a press release. “Our focus is to improve the accuracy of CPO values through NADA’s industry-leading data collection and analysis.”
More than ever, CPO sales incorporate a larger percentage of overall retail sales of late-model used vehicles. Stanton said new-car dealers, consumers, and lenders now have a guide for a CPO vehicle’s retail premium under a manufacturer’s program.
“NADA’s CPO values will provide lenders with underwriting guidance for consumer loans associated with the growing number of used vehicles sold through manufacturer CPO programs,” he said.
NADA estimates the CPO value by analyzing the sales records of both certified and non-certified vehicles based on vehicle age, individual CPO program requirements of multi-point inspections, the rate of depreciation, warranty extensions, and mileage.
