Understanding Certified Pre-Owned Vehicles: Essential Insights

Have you encountered the term ‘certified pre-owned’ (CPO) while browsing used cars online or at dealerships? But what exactly defines a certified pre-owned vehicle?

Unlike private-party or independent dealership used cars, CPO vehicles undergo thorough inspections based on manufacturer standards and come with a warranty backed by the manufacturer. These cars are sold through authorized new car dealerships, often with mileage restrictions.

Before purchasing a certified pre-owned vehicle, it’s important to understand key points.

Certified doesn’t always mean cheaper
Many buyers assume CPO cars are more expensive than typical used cars. However, studies show that regular used vehicles may cost approximately $700 more than CPO options. Popular brands like Jeep, Honda, Subaru, and Chevrolet often have competitive pricing in their certified programs.

Verify the certification process
Some dealers may falsely label cars as certified after minimal cleaning or repairs. To avoid such scams, ensure the vehicle is certified through the manufacturer’s program, which guarantees adherence to specific standards and includes a manufacturer-backed warranty.

Warranty details vary among brands
Some manufacturers provide a 12-month, 12,000-mile limited warranty, while others offer longer coverage, such as five years or 100,000 miles for powertrain components. Always review the specific warranty terms of each brand.

Age isn’t a barrier
Certified pre-owned vehicles range from nearly new models returned after leasing to older vehicles around six or seven years old with over 50,000 miles. Age isn’t necessarily a limiting factor when considering CPO cars.

Not entirely problem-free
While inspections are comprehensive, there’s still a chance that a certified car may develop issues later or have had undetected original flaws. Always perform your due diligence before purchase.