The USA’s economy has shown continual growth over the past few years and with it a steady surge in new car sales. Predictions in 2015 are that the market will reach 17 million, but still well down on the record 21.7m in 2001.

Alongside a steady growth in the new market has also been an increase in retail leasing as US consumers are offered more available credit as the economy improves. Just 13% of new car sales were purchased as a retail lease in 2005 and this has grown substantially to a forecast 22% in 2015.

This availability of credit has helped grow new car sales, but behind this leasing growth is a new strategy by car makers, which has also been mirrored in other countries including the United Kingdom.

Car makers know that once a consumer buys a car on lease, the dealer who delivered the car will have some control over that driver’s next car purchase when the contract ends. A well-timed call from the dealer one to two months before the end of the lease with another keen new car finance deal and an offer to take their old car back a few weeks early works for all concerned.

The consumer is happy that they have another new car with an affordable finance deal, while the dealer receives a good quality part-exchange they can immediately put on their forecourt for sale.

This approach has been backed by a keen strategy by car makers to strengthen their Certified Pre Owned (CPO) schemes to attract those consumers who can’t afford a new car but can afford a two to three-year old used car.

Up to 3.0m used cars will be purchased through certified schemes in 2015, a rise of more than 10% on 2014. Car makers can charge more for the car as they are sold in retail condition and the consumer receives peace of mind they are buying a premium purchase.

Multiple websites, from OEMs to franchised dealers, are offering CPO vehicles across the US, with significant sales success. Retail schemes are generally supported by aggressive remarketing, making used cars available online as dealers compete for this new breed of eager US used car buyer.

This focus on used cars has helped dealers improve their profitability at a time when margins on new cars are shrinking. It has also injected new enthusiasm by dealers in used cars as manufacturers look at repatriating more and more cars back into their brands. Greater control over their used market means better control of prices and distribution into the marketplace, another factor in improving dealer profitability.

Another trend now that fewer car makers are offering rental cars on buy back deals is the increased focus by rental suppliers on extending the replacement cycles to well beyond two years. This has helped feed older used cars into the wholesale market, which is set to increase to around 10.0m in 2015 from 9.5m in 2014.

This increase in supply has only slightly impacted on prices, but with more corporates extending their replacement cycles of cars on lease wholesale volumes are likely to continue, which will keep prices in check at the three to five-year old end of the market.