Sometimes, new and shiny things are fun, but the price tag may give us pause. While buying a new car might offer more bells and whistles, it’s significantly more expensive than buying a used car.
However, used cars don’t necessarily offer the same trust or reliability. After all, if someone else had it first, it’s hard to gauge how much they took care of it (if they did at all) before it got to you.
That’s where certified pre-owned (CPO) vehicles come in.
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CPO cars are used vehicles sold by dealers and auto manufacturers that go through a specific and thorough inspection to prove that the vehicle is up to particular standards. If you want to buy a high-quality car but don’t want the price tag of buying a new one, a certified pre-owned vehicle could be what you're looking for.
What does certified pre-owned (CPO) mean?
CPO cars are still used cars, but they need to meet certain conditions and requirements to be called “certified pre-owned.” Dealers and manufacturers put a vehicle through meticulous testing and inspections to make sure it’s up to their CPO standards before giving it the label. They usually come with an extended warranty and a lower price tag than a new car.
Each dealer, manufacturer, or other seller has its version of what qualifies for its CPO program. There’s no universal CPO standard. While all CPO cars are used, not all used vehicles are CPO. Despite not having the same CPO standards and definitions, many CPO vehicles must meet requirements set by each manufacturer or dealer to prove they are better than standard used cars.
What should you know when comparing certified pre-owned programs by manufacturer?
Almost all car manufacturers offer certified pre-owned (CPO) options, but the details of these programs can vary significantly. Differences may include mileage limits, vehicle age, inspection standards and warranty coverage. Understanding these variations can help you choose the right CPO program for your needs.
For example, Lincoln vehicles undergo a thorough 200-point inspection, while Genesis models are checked against 191 criteria. On the other hand, Bentley lists inspections but does not specify the number of checkpoints in its CPO program.
Most manufacturer-backed CPO programs include extended warranties, but the coverage varies. Rolls Royce offers a comprehensive plan with roadside assistance and no deductibles, while Tesla allows all vehicles to qualify without limiting vehicle age. In contrast, brands like Toyota, Subaru and Mercedes impose vehicle age restrictions for CPO qualification.
In addition to manufacturer-backed programs, you can find certified pre-owned vehicles at used car lots and third-party auto sellers. Retailers like Costco offer CPO vehicles as part of their Costco Auto Program, which provides added benefits such as pre-arranged pricing, extended warranties and access to their dealership network. Exploring options beyond traditional dealerships can help you compare prices and benefits, giving you greater flexibility while still ensuring the vehicle meets rigorous inspection standards.
If you’re looking for which cars offer top-tier CPO programs, look at the list from Car and Driver. Don’t forget to check a vehicle’s history report, whether that’s through a government website or Kelley Blue Book.
How to avoid common mistakes when buying a certified pre-owned vehicle
Not all certified pre-owned (CPO) programs are created equal, so it’s essential to research thoroughly before making a purchase. By understanding the nuances of various programs, you can ensure you’re making an informed decision that aligns with your needs and budget.
To make the most of your investment, consider the following:
- Verify Manufacturer-Backed Certification: Ensure the CPO vehicle has been inspected and certified according to the manufacturer’s standards rather than the dealer’s alone. Manufacturer-backed programs typically have more stringent criteria and include benefits like extended warranties.
- Take it for a test drive. Nothing beats driving it yourself. Get in the car with a salesperson and drive around the block to see how it feels. Walk around the car, sit in the back seat, open each door and inspect the vehicle to make sure it meets your standards.
- Evaluate total costs: Compare the price of the CPO vehicle to other options, including new cars and standard used vehicles. Factor in ongoing expenses such as insurance, maintenance, fuel or charging costs and potential storage or parking fees to get a complete picture of ownership costs.
- Review the CPO Program details: Take the time to understand the specifics of the warranty and return policies. For example, consider whether the warranty covers repairs without deductibles, has mileage limits, or includes perks like roadside assistance.
Certified pre-owned (CPO) vehicles offer a balance between cost savings and reliability, making them a smart choice for many car buyers. By thoroughly researching manufacturer-backed programs, comparing warranties and taking the time to test drive and inspect the vehicle, you can feel confident in your purchase. Investing a little extra time upfront ensures you get the quality and value you deserve while avoiding unnecessary expenses in the long run.
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