In a tough car market, more Americans are turning toward this Goldilocks option

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Used cars break down. Credit is tight for subprime buyers, and new cars are expensive and in short supply.

Americans bought fewer used cars in May than they did one year before. But the number of certified pre-owned car sales rose.The increase comes despite a slow year for CPO sales.

“CPO sales usually experience a significant surge from January to May, with a sharp increase in sales during the spring selling season,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive. “However, this year’s increase has been less dramatic than we usually see.”About certified pre-owned cars Most car sales are used car sales. Most years, Americans buy more than twice as many cars used as new.

CPO cars are the Goldilocks option between new and used. CPO cars are usually two to six years old, thoroughly inspected by the dealership that sells them, and have a warranty covering repairs if something goes wrong early in the car’s life.Related: More Americans are snapping up used electric cars Our analysts say a short-term drop in used car prices may be coming soon – dealers have been paying less for used cars at auction for several months. A decrease in wholesale prices usually means a drop in retail prices about six to eight weeks later.

 

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