Do you know that you could lease an authorized pre-owned (CPO) automotive? Most individuals do not know, and most manufacturers don’t provide leases on CPO vehicles. Even for manufacturers that do lease CPO vehicles like Honda and Acura, they account for lower than 1% of the corporate’s annual quantity. Honda, nonetheless, is hoping to extend CPO leasing to five%.
CPO Leasing Growth?
How do Honda and and its Acura luxurious model plan to extend CPO lease numbers by 500%? Dan Rodriguez, American Honda’s director of auto remarketing and fleet operations, not too long ago defined methods to business publication Automotive Information.
Honda will broaden its CPO lease program by way of new options that streamline the method. These options will embrace a brand new on-line calculator and a CPO lease web page on the model’s retail web site.
In keeping with information from Kelley Blue Ebook guardian firm Cox Automotive, CPO gross sales accounted for 15% of the whole retail used automobile market as of June 2024.
This October, Honda may even lengthen the non-powertrain restricted guarantee on Acura and Honda CPO automobiles to 2 years/100,000 miles. The powertrain guarantee is already legitimate for seven years/100,000 miles.
CPO Leasing Is a Current Innovation for Honda
Honda launched its CPO lease program in December 2023, explaining that it’s most helpful to first-time and youthful consumers.
“Larger new-vehicle costs make the power to lease Honda licensed used automobiles an much more important gateway to automobile possession for younger and first-time consumers,” Rodriguez stated in a press launch final December.
Honda’s program permits clients to lease CPO used automobiles which might be six years outdated or newer with fewer than 80,000 miles.
The lease course of is just like a brand new automotive lease. At lease finish, the automobile may be bought for a beforehand agreed-upon value or just returned to a Honda vendor.
Why CPO Leasing?
Honda says rising new automobile costs and better wholesale used automobile costs have made CPO leasing extra possible.
Honda says it ranked second within the U.S. for CPO automobile quantity in 2023, with vital development in CPO quantity final 12 months. Increasing its CPO lease program is the following step.
The transfer can be meant to draw extra first-time consumers to Honda and Acura by way of extra inexpensive choices. CPO leasing may permit consumers to improve to bigger or better-equipped Honda fashions than they may afford new.
For extra info on CPO automobiles, together with opinions of CPO applications and the way these applications work, go to our CPO hub.
