Is it Smart to Buy a Certified Pre-Owned Vehicle?

When it comes time to purchase a used vehicle, there are countless avenues to explore. You can try your luck at the local used car lot, visit your local dealership, or try to find a suitable vehicle via a private seller on the Internet. You should certainly consider exploring Certified Pre-Owned (CPO) programs as well. In this article, we explain what CPO programs are, along with the potential benefits and drawbacks of purchasing a car through this method. 

Understanding Certified Pre-Owned Programs

CPO vehicles are pre-owned cars that have undergone a reconditioning and inspection process carried out by a franchised dealership or the vehicle’s manufacturer. In most cases, the CPO process involves a multi-point inspection that ensures the vehicle is mechanically sound, in good cosmetic condition, and adherent to safety standards. If replacements or repairs are needed, they will be made using Original Equipment Manufacturer (OEM) parts. Vehicles must meet the manufacturer’s CPO criteria before they may be sold on to a new owner. 

At this point, you may be wondering what sets a CPO car apart from the average used vehicle. The main difference between the two is the inspection and certification process implemented for CPO vehicles. When you buy a CPO vehicle, you can do so with a little extra peace of mind that you are getting a safe, mechanically-sound car. 

What Are the Benefits of CPO Vehicles?

Purchasing a CPO car has some undeniable advantages. First and foremost, you get at least some level of assurance that the car you’re receiving has gone through an industry-standard inspection and reconditioning process. Since the car has been meticulously checked by certified technicians, the odds of experiencing unexpected problems is significantly lower. 

Furthermore, CPO vehicles typically come with extended warranties that go beyond the powertrain warranty offered on most used cars. You’ll have financial protection from repair costs for a set mileage limit or length of time. If a car crash does occur, the dealership or manufacturer you bought from will provide repairs as long as they are covered.

CPO programs might have some other perks for buyers as well. Many CPO packages include roadside assistance, which can be incredibly handy if you experience an unexpected breakdown. Some manufacturers might offer appealing financing options or a complimentary maintenance plan as well. 

Are There Drawbacks to Buying a CPO Vehicle?

Despite the benefits, CPO vehicles can also have some potential drawbacks that are worth keeping in mind. One significant difference between a CPO vehicle and standard used care is the price. CPO cars typically command a higher price tag compared to similar used cars without certification. The higher sticker price reflects the manufacturer inspection, reconditioning, warranty coverage, and any additional perks that come with a given CPO vehicle.

In addition to potential significant differences in pricing, you may find that CPO vehicles have a very limited selection to choose from. In most cases, CPO programs are tailored towards late-model vehicles that meet specific age and mileage criteria. If you are looking for a very specific vehicle make and model, your choices may be limited compared to the wider used car market.

You should also consider the potential limitations of CPO warranties. While having a warranty is infinitely better than having no financial protection at all, not all damage or repairs are always covered. Be sure to carefully consider the offered warranty package to understand what repairs are included and how long coverage lasts.

Alternatives to CPO Programs

CPO vehicles are just one option in the car buying landscape. Some other options you should also explore include:

• New Cars: New cars offer the latest features, extended warranties, and the reassurance of driving an unused vehicle. However, new cars also tend to be the most expensive and the value of a brand-new vehicle quickly goes down. 
• Regular Used Cars: If you’re looking for a specific vehicle and find yourself limited by the CPO market, you might consider buying a regular used car. In most cases, you’ll have more options that span a wide range of budgets as well. However, you’ll need to do your due diligence to ensure the vehicle does not have any undisclosed mechanical issues. 
• Leasing: Leasing offers the chance to drive a new car every few years with lower monthly payments compared to buying. However, you won’t own the car at the end of the lease term and there are some mileage restrictions to consider.

Making an Informed Decision to Get Your Next Vehicle

Ultimately, the decision of whether to buy a CPO vehicle depends on your priorities and needs. If you value extended warranty coverage, peace of mind, and a manufacturer-backed inspection process, paying the extra price for a CPO vehicle may be worth it. However, if you’re on a tight budget and are willing to take on the risks of a regular used car, exploring that option may be more suitable.