Guide to Certified Pre-Owned Vehicles: What You Need to Know
Learn all about certified pre-owned cars, including their standards, warranties, pricing, and what to check before buying. Discover how these vehicles offer a reliable alternative to new cars, backed by manufacturer inspections and warranties.
You've likely encountered the term 'certified pre-owned' (CPO) when browsing cars online or visiting dealerships. But what exactly defines a certified pre-owned vehicle?
In contrast to private sales or independent used-car dealers, CPO vehicles undergo comprehensive inspections according to the manufacturer’s standards and come with official manufacturer-backed warranties. These cars are sold through authorized dealerships, often with mileage restrictions. Before purchasing a CPO vehicle, it's essential to understand the nuances involved.
Expense Expectations for Certified Pre-Owned Vehicles
Many assume CPO cars are pricier than regular used cars. However, studies show that standard used cars typically cost about $700 more than their certified counterparts. Popular brands like Jeep, Dodge, Subaru, Honda, Chevrolet, Buick, and Chrysler often have reasonable premium pricing on their CPO models.
Inspect the Certification Process Carefully
Be cautious of dealerships that claim used cars are certified without proper accreditation. Some might simply clean the vehicles without meeting manufacturer standards. Always verify that the certification is backed by the manufacturer, ensuring warranty validity and proper inspection.
Varied Manufacturer Certification Policies
Different automakers offer different warranty packages. For example, some provide a 12-month, 12,000-mile new certification warranty along with a five-year, 100,000-mile powertrain warranty from the original sale date. Others may offer only a three-month or 3,000-mile coverage.
Age and Mileage of Certified Vehicles
Certified pre-owned cars are often viewed as viable alternatives to new vehicles. Many are recent models returned after lease terms, typically 2-3 years old, with under 50,000 miles. However, some brands sell older cars, around six to seven years old, with higher mileage, yet still qualify for certification.
Certified Doesn’t Equate to Flawless
While thorough inspections are conducted, there's still a chance that a certified vehicle could have undetected issues or problems originating from its initial manufacture. It's wise to perform additional checks before finalizing the purchase.
