Ford Dealers Lean on Used Cars to Survive New-Vehicle Slump

Ford’s U.S. dealership network is increasingly dependent on used-car sales to maintain revenue as new-vehicle demand weakens and the automaker’s lineup skews toward higher-priced trucks and SUVs. The company sold 130,112 certified pre-owned vehicles in the third quarter, surpassing Toyota for the first time in that period, according to Automotive News.

That quarterly milestone points toward a projected record of 450,000 CPO units by year-end. Ford executives have told analysts they expect to exceed 500,000 CPO sales in 2027, a target that would unseat Toyota from the top position it has held in the U.S. market for years.

The pivot to used inventory is not optional for many franchise owners. Average new-vehicle transaction prices hit $50,562 in September. Ford eliminated its passenger car segment earlier this decade and recently discontinued the Escape compact SUV and Lincoln Corsair. The Maverick pickup and Bronco Sport now represent the brand’s most affordable entry points, both starting near $30,000.

Toyota still sells the Corolla, Camry, and Prius, giving its dealers a steady flow of sub-$30,000 new vehicles that eventually cycle into the CPO pipeline. Ford dealers lack that specific feedstock but are compensating through volume in trucks and utility vehicles.

Approximately 70% of Ford’s 2,800 U.S. dealerships participate in the Ford Blue Advantage CPO program, which launched in 2021. The dealer-led structure allows franchise owners to source, certify, and price inventory with more autonomy than traditional factory-controlled CPO programs at competing brands.

Distribution channels have also expanded beyond the lot. Ford began listing CPO vehicles on Amazon Autos last year, targeting buyers who bypass physical showrooms entirely.

Future product plans will eventually alter the CPO equation. Ford intends to introduce five new models priced under $40,000 by 2030, including the Fathom, an all-electric pickup with a $28,350 starting MSRP. Because CPO programs typically rely on two- to four-year-old lease returns and trade-ins, these cheaper new models will not generate certified used inventory until late in the decade.

Until those vehicles age into the secondary market, Ford franchise profitability rests heavily on moving current used stock fast enough to cover the gap left by declining new-car margins.