Yahoo Autos A Certified Pre-Owned Vehicle Could Be a Great Deal
Virtually every auto brand operating in the United States offers its own distinct Certified Pre-Owned (CPO) program for used cars. If you’ve spent any time online searching for a used car, you’ve probably seen ads for them. But what exactly are they? What do they offer? Are there any catches to a CPO vehicle deal? And would a CPO vehicle make sense for you?
What Makes a CPO Vehicle Special
Unlike vehicles acquired through a private seller, purchased from an independent used-car dealers, or through third-party sites like Craigslist, CPO vehicles are inspected according to the manufacturer’s standards. They are serviced and repaired where necessary and carry a manufacturer-backed warranty that usually extends at least the length of the brand's standard new-car coverage-and often lasts quite a bit longer.
CPO vehicles are sold only through licensed new-car dealers, and a given dealer sells only his own brand of CPO vehicles-in other words, Audi dealers sell only Audi CPO vehicles, Chevy dealers only Chevy CPO vehicles. It's the same for every brand. Typically, CPO vehicles are at most several years old and are low-mileage examples in excellent condition. All of this helps to ensure they have plenty of pep in their step when you take the wheel.
Those are the basics across all CPO programs. But among the 40-plus brands on the market, there are many detail differences and, hence, a wide range of options to consider. Each program has its own eligibility rules for vehicle age, mileage, and condition. There are variations in the length and degree of warranty coverage, as well as rules for the transferability of any warranty to a subsequent owner. These details, along with even smaller ones, such as the availability of roadside assistance, add up to meaningful differences. All other things being equal between vehicles that you are considering, it's good to scrutinize the specifics of each manufacturer's CPO program and cross-shop the coverage before you commit to a purchase.
What Are the Benefits of a CPO Program?
The plusses of a Certified Pre-Owned are that it reduces your out-of-pocket costs two ways: with a lower purchase price versus a similar new vehicle, and a with a manufacturer-backed factory warranty versus a conventional used vehicle. In other words, it costs less to buy than a new vehicle, but if something goes wrong, you've got a warranty to drastically reduce your financial liability.
Buying a two-year-old CPO vehicle typically saves buyers about 25 percent versus the cost of a brand-new version. Four-year-old CPO models are often marked down by as much as 40 percent compared with new, and remember, most manufacturer's product cycles-the number of years they keep a model in production with relatively minor upgrades-tend to be in the five-to-six year range. So buying a CPO vehicle often means you're getting a current-generation vehicle that hasn't been superseded by an all-new model.
Unlike most used vehicles, some CPO programs now offer leasing as an option through certified dealerships. As with new cars, leasing a CPO vehicle should substantially lower the monthly payment. CPO vehicles also offer customers some peace of mind in a used-car market where they are sometimes expected to trust @hondaluvr89 to not, um, exaggerate the condition of the Honda Civic he got as a hand-me-down from his uncle who bought it “almost new” from some guy in East Whereverburg.
Indeed, every CPO program evaluates its vehicles using a manufacturer-specific inspection checklist, which generally encompasses at least 100 points (Audi’s checklist numbers more than 300 points!). And nearly every program provides a third-party vehicle-history report as proof that the car has led an uneventful life. It’s a good idea to review the CPO checklist online or ask the dealer for a copy to get an idea of what they’re looking at.
Finally, and probably most important, consider that CPO cars also feature a manufacturer-backed warranty. The details for each manufacturer’s CPO warranty vary (corporate siblings tend to share the same program), but as a general rule, such warranties act as an extension of the factory warranty but offer slightly less coverage-but over an extended period of time and over more miles than the basic factory new-car warranty. Whereas a factory warranty and some CPO warranties have no deductibles, some companies will charge $50 to $100-or more-to perform covered repairs. Still, these CPO warranties can offer peace of mind and can save you bundles of cash in the event of a major repair.
Some CPO warranties use the vehicle’s original in-service date as a starting point, while others begin at the end of the new-car warranty or on the date of the CPO purchase. Coverage periods vary by automaker, but even the stingiest plans will net you a total of about six years or 80,000 miles of coverage from the date of the car’s sale to the first owner. Coverage lasts for the allotted number of years or the allotted number of miles, whichever comes first. A few brands even provide coverage for a period of years along with unlimited mileage.
Read the Fine Print of the CPO Deal
Often, CPO programs divide their coverage into a powertrain warranty that covers the engine, transmission, and other major mechanical components, and a limited warranty for other areas of the vehicle like infotainment and climate control. What's covered and for how long varies widely among brands, but typical wear items such as brake pads and exterior paint are almost never included in the warranty-unless the damage is the result of a manufacturing defect.
Electric vehicles or vehicles with hybrid components may be excluded from some programs or receive different warranty coverage, and vehicles with aftermarket parts or a known history of being run on racetracks are often completely excluded from CPO programs. The warranty minefield doesn’t end when you purchase the car, however. Having repairs done outside the manufacturer’s dealer network or even missing a scheduled maintenance visit can be enough to void a CPO warranty.
All of this is to say: Read everything you sign. Thoroughly.
If your newly acquired CPO vehicle does happen to break down in one of the covered ways, you will be pleased to hear that most programs include access to 24-hour roadside assistance in the form of towing, flat-tire assistance, fuel delivery, and jump-starting. You may also get reimbursement for any rental cars necessitated by a long repair, and if you happen to get stranded far from home, some brands will reimburse you for unexpected travel expenses
Is a CPO Vehicle Right for You?
Only you can be the judge. Purchasing a CPO vehicle almost certainly will be more expensive than buying from a private seller or buying a non-certified used car and then purchasing a third-party warranty. But that can be more than offset by the CPO vehicle's low mileage, good condition, and the peace of mind that comes with a factory warranty. Buyers searching for a very specific vehicle or one with a unique configuration may do better to find a private seller or put out the call on enthusiast forums. But for many buyers, getting a like-new vehicle for a used car price is a deal that just has to be considered.
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