Yahoo Autos 5 Reasons a CPO Vehicle May Be Right for You
When contemplating a vehicle purchase, it’s important to know your options. There are more considerations than simply new or used; going down the used-vehicle path will also necessitate a choice between buying from a private seller or a dealer. Even among used vehicles at the dealer lot, there’s a subset advertised as “certified pre-owned,” or CPO, which are typically sold through licensed new-car dealers. Since they generally come with a better warranty, relatively modest miles, and a thorough inspection, CPO vehicles strike a potentially compelling middle ground between new and used.
Here are five reasons a certified pre-owned (CPO) vehicle may be right for you:
1. It’s Cheaper Than Buying New
Let’s get the most obvious reason out of the way first. New cars and trucks are, by nature, more expensive than their used brethren. On average, two-year-old CPO vehicles are typically 25 percent cheaper, and those four years old tend to be 40 percent less expensive. However, it is important to remember that CPO vehicles do carry a premium over their non-CPO used counterparts. The question buyers need to ask themselves is: Do the additional benefits of buying a CPO justify the higher price?
2. There’s a Manufacturer-Backed Warranty
And that gets us into another reason why a CPO makes sense for certain buyers. Because with that premium, automakers offer a variety of manufacturer-backed warranties. Just like the cars and trucks they help certify, not all warranties are created equal, however, so buyers will want to pay special attention to the warranty specifics. There are powertrain-limited warranties and bumper-to-bumper warranties, and several automakers offer combinations of both.
Powertrain warranties typically span longer periods, such as six years or 100,000 miles from the date the vehicle was purchased new. A bumper-to-bumper warranty may last for one year or cover 12,000 miles and could include a deductible of $50 to $100. When shopping for a CPO, buyers should be sure to inquire about the length of the warranty, the details regarding types of repairs that require paying a deductible, and the list of items not covered at all. Also, pay attention to whether the manufacturer has a fee to transfer a CPO warranty should you want to sell the car or truck before the warranty expires. (BMW, for example, charges $200 for the warranty to be transferred to a subsequent owner.)
3. The Vehicle Has Been Inspected
One of the reasons a warranty is offered in the first place is because manufacturers make sure CPO cars, trucks, and SUVs are in solid working order before they offer them up for sale. Unlike an as-is used car that you’ll find on a dealer lot or listed by a private seller, CPO vehicles are put through a fairly extensive inspection checklist. Ford and General Motors, for example, have 172 items the automakers say technicians must complete before signing off on a pre-owned Ford, Buick, GMC, or Chevrolet vehicle as CPO. If you’re not particularly mechanically inclined, the relative peace of mind buying CPO can offer could be well worth it.
4. CPO Vehicles Still Have a Lot of Life in Them
To qualify as CPO, a vehicle typically must meet age and mileage restrictions. This, too, differs by manufacturer, but typically CPO cars and trucks are not more than five to six years old and have fewer than 75,000 miles on them. Most manufacturers will throw in perks such as 24-hour roadside service and SiriusXM radio with a CPO purchase.
5. You Get Less Variety, But CPOs You’ll Find Are Choice
If you’re looking for a Porsche 911 with a manual transmission and a few particular options-as we often aimlessly find ourselves doing-seeking out one that is offered as a CPO is probably just this side of impossible. Even when searching for something more common, among used cars on a dealer lot, the vast majority aren't CPO. One dealership in Ann Arbor, Michigan, for example, has 1507 used cars listed for sale on its website, only 63 of which are CPO. The smaller numbers are explained-and justified-by the number of criteria we’ve just described that CPO vehicles have to meet. Some automakers give shoppers a time period, such as three days or 150 miles, to test out a CPO and decide whether they’d rather swap it out for something else.
Still on the fence? Read our more comprehensive overview of CPO programs, or a breakdown of details brand by brand for every CPO offering.
This article is syndicated from Car and Driver.
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