A used automobile is a certified pre-owned car. A CPO vehicle stands out from other used cars because it has undergone dealer-trained mechanics' inspection and vetting, as well as receiving a manufacturer-backed extended warranty and a seal of approval. A variety of benefits, like free satellite radio and roadside help, are frequently included with vehicles that have been certified by the companies that make them.
The important thing to remember is that these cars are excellent examples of that model and have been meticulously inspected. Then, the essential parts covered by the examination are protected by an extended warranty. Because of these factors, a certified pre-owned car may be preferable to a brand-new one. Here is a detailed explanation of certified used cars and if it is wise to look into them while purchasing a vehicle.
What Does "Certified Pre-Owned" Mean?
Certified Pre-Owned (CPO) cars, trucks, and SUVs are late-model vehicles that have low mileage and require little repairs. These vehicles are typically between two and three years old, yet their age can range from two to seven years old depending on the manufacturer. Most have fewer than 10,000 annual kilometers and have never been in a serious collision.
Typically, a car history report from a company like EpicVIN will support these claims. Make sure you have one with the VIN in case the dealer doesn't give you one. On used models of that brand's cars, certified pre-owned vehicles are often supplied through new car dealerships. These dealers frequently closely follow the certification requirements set forth by the brand, but they may also provide additional benefits.
Certified Pre-Owned (CPO) programs may be offered independently by different dealerships, regardless of whether or not they adhere to a centralized set of corporate requirements. In either case, be sure to find out exactly what is checked for and guaranteed by the program. Every program and carmaker has its own preferences when it comes to selecting the best pre-owned vehicles available. Nonetheless, always check the VIN number when buying CPO to know the vehicle’s history.
Are Certified Pre-Owned Cars Worth It?
CPO cars can serve as a terrific third choice if you're torn between buying a new or used automobile. For the same price as the newest model of the same automobile, you may upgrade to a more luxurious make or trim level. “You may save money by purchasing an off-lease car that is two or three years old. You might be able to find a comparable car without the CPO label and save some money with a little searching.
According to the research, the typical price difference between new and certified pre-owned automobiles is roughly 3.5%, while it may be as much as 7% for premium cars. Although certified pre-owned automobiles cost more, many purchasers believe the peace of mind that comes with driving one is worth the extra money.
Pros of Buying Certified Pre-Owned Cars
Better Car: An industry pricing/value reference, a typical three-year-old CPO vehicle has fewer kilometers and is typically in nicer condition than a similar used car.
Less Risky: The vehicles have been through a thorough examination, have an extended manufacturer warranty, and have been checked by dealers for any recalls.
APR Savings: CPO rates offered by manufacturers are typically lower than used car loan rates offered by banks and credit unions. You may be able to obtain Certified Pre-Owned auto financing with zero percent interest, but you'll probably need stellar credit to qualify.
Bonuses: Manufacturer benefits might range from free oil changes and roadside assistance to a trial subscription to SiriusXM satellite radio.
Cons of Purchasing Certified Pre-owned Cars
Higher Cost: A certified pre-owned car will cost a few thousand dollars more than a comparable used car without certification. Though, they are cheaper than lots of other new cars for sale.
Less Purchasing Options: Your options for shopping are constrained because CPO automobiles may only be purchased through branded dealerships.
CPO Does Not Imply Perfection: A CPO automobile can still have issues that frequently affect that particular model, or the dealer might not have caught everything. Additionally, if there is still enough life in wear-and-tear goods like tires, they are not changed. As with any used vehicle, you might be liable for paying for these.
Is There A Difference Between Used And Pre-Owned Cars?
There are three main categories from which buyers may choose when shopping for a car: brand new, previously used, or CPO. Although it's easy to spot a brand-new car, buyers aren't always able to tell the difference between a used and a certified pre-owned vehicle.
A Certified Pre-Owned vehicle has undergone a thorough inspection, and any required repairs or replacement components have been completed. Certified pre-owned (CPO) automobiles typically come with several service perks and customer incentives, including roadside assistance and extended warranties. The dealership did not perform a comprehensive 150-point check on this car, therefore there is no warranty provided by the dealership.
When purchasing a used car, make sure the warranty you're getting is transferable and only covers the remaining time left on the vehicle's original manufacturer warranty. It's important to remember, though, that buying a used car doesn't exclude consumers from investing in an extended warranty if they prefer.
Which is Better: a Certified Used Car or an Extended Warranty?
While purchasing an extended warranty may seem like a convenient replacement for a certified pre-owned vehicle, it often ends up being more issues than it's worth. If you're looking for a car, it's on you to do the inspection and find out if it's in excellent shape.
With a certified pre-owned automobile, all of those worries are eliminated. In addition, the non-CPO used car condition could not be as good as the CPO vehicles. There may be specifications or history on that pre-owned vehicle that exclude it from CPO status. Perhaps it's old, has racked up too many kilometers, or has a few minor dents that disqualify it.
The warranty adds another level of complexity to the situation. Assuming the secondhand automobile is still covered under its original manufacturer's warranty, the simplest course of action here would be to buy that warranty.
If you're on a tight budget, though, you'll probably go with a third-party warranty. While a few of them have impeccable reputations, the vast majority do not. To find the best deal and the most comprehensive protection, you need to conduct your research. It's possible that the extended warranty won't cover as much or provide as much leeway in terms of coverage as a certified pre-owned warranty would.
The Bottom Line
When making a used purchase, just get what you need. Certified pre-owned vehicles, for instance, are well-maintained, perform like new, and come with the manufacturer's support. Some certified pre-owned (CPO) automobiles may provide higher offers on new cars than CPO vehicles with identical model years and mileage.
On the other hand, if you're on a limited budget but still need a reliable means of getting from A to B, you may look into purchasing a non-CPO used car and supplementing it with an aftermarket warranty. Keep in mind that it may be more cost-effective to forgo the certified pre-owned automobile. You may save money on certified pre-owned cars by avoiding the premium offered by brands and models that have a stellar reputation for dependability. When shopping for a pre-owned vehicle, it's important to be cautious.
Frequently Asked Questions
Certified Pre-Owned (CPO) vehicles are more expensive than comparable used vehicles because they undergo a more extensive inspection by a manufacturer-trained technician. This implies that to be designated as Certified Pre-Owned, a vehicle must adhere to a strict set of criteria. Only at franchised dealerships can you purchase a genuine CPO.
Certified Pre-Owned (CPO) automobiles are much like any other new or pre-owned vehicle in that they are open to, and even encourage negotiation. While negotiating, it's important to keep your focus on the final, after-tax price of the automobile.
Before a Month, Quarter, or Year End. In addition to Black Friday and Christmas, the final few months of the year are a particularly advantageous period. The conclusion of a sales quarter or fiscal year may be the ideal period to purchase a pre-owned automobile.
