Yahoo Autos What is a CPO Car and Should You Buy One?
Buying a new car is more expensive than ever, with the average new car price exceeding $40,000. Although used cars are more affordable, you might be reluctant to purchase one because it comes with uncertainties beyond what a vehicle history report can uncover. Luckily savvy car shoppers can have the best of both worlds thanks to certified pre-owned (CPO) vehicles.
What is a certified pre-owned vehicle and is it a good car buying decision? Do certified vehicles bring high-quality and lower risk to consumers? We have the answers.
What Does Certified Pre-Owned Mean?
If you’re shopping for a car, you’ve likely come across certified pre-owned or CPO vehicles. But what does that mean exactly, and how do they differ from traditional used cars? A certified pre-owned car is a low-mileage, accident-free used car that is typically less than seven years old and has been reconditioned to meet strict manufacturer or dealer standards. They also typically have less than 80,000 miles on the odometer. Backed by an extended car warranty from their original manufacturer, CPO cars have undergone a rigorous, multi-point inspection and reconditioning process to achieve Certified Pre-Owned (CPO) status. Additionally, many CPO vehicles come with added perks like roadside assistance, loaner car access and trip interruption protection. Check out our handy guide for more information on how to buy CPO cars.
Buying a Certified Pre-Owned Vehicle: Pros
Purchasing a CPO vehicle comes with some advantages. Here are the main reasons why purchasing a CPO model might be a smart decision:
Savings: Certified pre-owned cars are less expensive than new cars. In fact, the average used car depreciates by 39 percent over three years according to a recent iSeeCars study on the best off-lease car deals. Buying a lightly used car allows you to save money by purchasing a vehicle after it’s taken its main depreciation hit. In fact, you can find certified pre-owned cars for under $15,000 and across a wide range of budgets. Buying the right CPO car can also save you money over a non-certified used car because they hold their value better after purchase and have lower maintenance costs due to warranty coverage. Better still, CPO cars often come with special financing rates that are better than what’s often found on non-certified used cars.
Modern Vehicles: Although you’re buying a pre-owned car, you’re still buying a modern late model vehicle. Many CPO vehicles are 2-3 years old, which means that they are often in the vehicle’s current model generation and have the same basic styling as new models, along with the latest vehicle technology. Or, if driving a modern car isn’t a priority, you can find an older version for even more added savings.
Added Peace of Mind: In order to qualify as a CPO vehicle, a car must pass a rigorous multipoint inspection of up to 300 items by trained technicians. You can even request a copy of the inspection to see exactly what was covered. CPO vehicles come with new car factory warranty coverage which generally includes a limited powertrain warranty for the engine, transmission and major mechanical components; and a limited bumper-to-bumper warranty for other issues that may arise that aren’t part of the powertrain. CPO warranties also extend coverage beyond what the manufacturer offers for a new car. This warranty coverage can ease anxiety of buying a used car, because it means that you won’t be on the hook for expensive repairs shortly after purchasing your vehicle.
