What is a Certified Pre-Owned Auto?

Robert avatar ROBERT P. ALLRED | MAR 25, 2021

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You might have heard the term many times before, but what does certified pre-owned mean when you're looking to buy a car? Luckily, you're in the right place to find out.

In essence, certified pre owned (CPO) vehicles have gone through reconditioning to be as-new for resale or leasing to buyers looking for pre-owned cars.

In this article, we will cover everything you need to know about CPO vehicles, as well as what it takes for a car to be qualified as one.

Whenever you're ready to learn more about the definition of CPO, keep reading.

What Does Certified Pre Owned Mean?

A certified pre-owned vehicle is any used late-model car that has gone through reconditioning and thorough inspection, leading to the approval of a factory-backed limited warranty.

Dealerships that sell CPO cars do so to fulfill two needs of the used-car shopper market. CPO vehicles present an affordable alternative to new vehicles with modern technology, and they remove the uncertainty of the condition that comes with used cars.

CPO cars also come with some advantages that don't come with other used vehicles, such as roadside assistance, access to loaner vehicles, and brand maintenance.

CPO cars take the difficulty of used-car shopping and make it easier. The vehicles are guaranteed to be working, inspected, and reconditioned to befit future customers' needs.

Now that you know what certified pre-owned means, we can get into the nitty-gritty of CPO qualifications.

Which Vehicles Qualify for the CPO Program?

When someone trades their car in or returns their leased vehicle during a new-car purchase, dealerships will assess the vehicle's condition and see if it can fit their CPO program requirements.

Let's take a look at the Volkswagen CPO program as an example. Each car has to meet certain requirements.

First, they must not be more than 6 model-years past and have less than 75k miles. Second, they should have an issue-free history report and a clean title. If the car does not meet these requirements, a factory-trained mechanic will perform a 100+ inspection to ensure it measures up to the program requirements.

The dealership that performs this certification repairs and replaces anything that has been worn beyond the program's limits. If a mechanic finds issues, they will also be repaired to make the car as-new in condition as possible.

Any Volkswagen dealership sells the vehicle with a limited 24,000/2 year warranty covering the powertrain, AC, and electrical system. Finally, Volkswagen will give 24-hour roadside assistance for 2 years to provide peace of mind.

Some other manufacturers have similar programs with comparable warranties and variable inspections. Honda's program includes a limited 100k mile/7 year warranty with a 182-point inspection and a 12k/1 year warranty on non-powertrain items.

Also, the car will continue its new-car coverage warranty until it expired.

What Is A Luxury CPO Program?

 Orange sports car on the parking lot

Like traditional programs, luxury programs will be variable between manufacturers. Let's use a Mercedes-Benz program to give you a sense of how a luxury CPO program would work.

For cars to qualify as Mercedes CPO, they must be new or at least 6 years old; it should also have under 75k miles. Eligible cars are then put into a 164 point inspection.

If coverage is still persistent under the original warranty (50k miles/4 years), the warranty will be transferred to the CPO buyer. If the original warranty expired, the owner would get another year of certified warranty with unlimited mileage.

There's also the possibility to purchase additional coverage, which also comes with unlimited mileage. Extras covered under this program are 24-hour roadside assistance and travel expense compensation for covered repairs.

What Is Non-Luxury CPO Program?

Non-luxury CPO programs vary greatly as well. For this example, we will use a Toyota CPO program.

First, each vehicle must be newer or at least 7 years of age; it should also have under 85k miles. Qualifying vehicles will go under a 160 point inspection and must have CarFax history reports completed.

Each certified pre-owned Toyota gets a 12k miles/12-month bumper-to-bumper warranty and a 100k mil/7 year powertrain warranty. It's pretty important to mention that the powertrain warranty begins on the original date of purchase of the vehicle, not the CPO.

Toyota also includes a year of roadside assistance, travel reimbursement protection, and complimentary loaner cars. The travel reimbursement and loaner cars are available if the car is covered for repair.

The company charges a deductible of $50 for covered repairs.

Any Reason Why CPO Programs Might Not Be for Me?

Quite evidently, CPO cars will be a bit more expensive than traditional pre-owned cars. That's because you're paying upfront for the warranty, inspection, and a variety of add-ons in the hope that you will not have to spend that money on the car later.

Nonetheless, there's no true way to predict what will happen after the warranty expires and how much the future repairs will cost. If you choose a used car without the CPO program, you can use the money that you save to cover any potential expenses down the road.

CPO programs are also not available for older models. If you want to buy high-mileage, low-cost vehicles, CPO is probably not for you.

VIN Reports for You

Now that you know what certified pre-owned means in the realm of used cars, you have gained a new set of knowledge to help you find a car that fits your needs.

As long as you understand the benefits of a CPO car and mitigate the disadvantages (like the cost), you will find that a CPO car is your best bet.

If you're interested in buying a used car or CPO car and trying to find more information on this vehicle, you should use a VIN report service. Luckily, you don't have to go looking for one for yourself, because we can help you out now.

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