Is Buying A Certified Pre-Owned (CPO) Car Worth It?

If you’ve visited a dealership recently, you’ve probably seen some great deals on cars that are “Certified Pre-Owned,” or CPO, for short. And you may be wondering – is it a good idea to purchase one of these cars instead of buying a brand-new vehicle, or buying a used car?

That’s a great question. So, in this article, we’ll give you an answer, and discuss all of the things you may want to think about when considering the purchase of a CPO car.

What Is A CPO Car? How Does It Differ From A Used Car?

A CPO car is still a used car. It’s a car that’s been driven by one, or maybe even two owners, and then returned to a Applewood Credit dealership, or purchased at auction by the dealer.

However, there are some differences between CPO cars and used cars. First, CPO cars typically have fewer miles on the clock than used cars. They may also have a better ownership history, and have been involved in few (or only minor) accidents. Typically, the interior and exterior of a CPO car are in near-perfect shape, as well.

The biggest difference, though is the CPO designation. At most dealerships, the manufacturer – let’s say Toyota, for example – has stringent requirements for what kinds of cars can be designated as CPO vehicles.

Any car that can be certified as CPO must usually pass a comprehensive systems check and inspection. Typically, inspections consist of more than 150+ points on the car. Essentially, every major system must be checked – and repaired or restored to factory quality, if necessary – before the car can be certified as Certified Pre-Owned.

This is known as “Factory” or “Manufacturer” pre-owned certification. As a rule, we recommend only looking at this type of CPO vehicle. While there are other third-party “CPO” programs out there, they are not a reliable indicator of vehicle quality, in most cases.

What Are The Pros And Cons Of Buying A CPO Car?

Here’s an overview of the most common benefits of buying a CPO vehicle.

1. A better warranty than a used car – CPO cars usually come with a 1-year bumper to bumper warranty, which covers just about any system which could fail. In contrast, most used cars are sold “as-is.” They may still be covered by the powertrain warranty, but there is no bumper-to-bumper coverage.
2. A lower price than a new car – CPO cars are much more affordable than brand-new vehicles, and it’s usually easy to find a CPO vehicle that’s within 2-3 model years, and get a great deal on the car. Depreciation will also be slower, so the car will maintain its value better than a new car.
3. Peace of mind – It’s nice to know that a used car has been inspected and checked, and thoroughly-vetted to make sure that it’s free of any major issues. You can drive with confidence – especially because many dealers will throw in extra bonuses like roadside assistance for 1-2 years after your purchase.

However, there are a few drawbacks of buying a CPO car that you may also want to consider.

1. More expensive than a used car – You may be able to get a better price on a used car that hasn’t gone through the CPO process, and is still in great mechanical condition.
2. “Wear items” probably haven’t been replaced – Things like brakes, tires, and batteries are “wear items” that are not under any kind of warranty. If you buy a CPO car with 40,000-50,000 miles on the odometer, you’ll likely still have to pay out of pocket for these items.
3. There is no guarantee that the car will be problem-free in the future – What happens if your CPO car breaks down a day after your 1-year warranty expires? The same thing that would happen if you’d purchased a used car. You’ll be on the hook for repairs. If you really want complete bumper-to-bumper coverage for your car, you’ll need to buy a new vehicle that comes with a longer warranty.

Buying CPO Can Be A Good Idea – But Do Your Research!

When you buy a CPO car, you’re essentially paying a premium for a car with a better warranty, which may be in slightly better mechanical shape, compared to a used car.

It’s up to you to do your own research, find used and CPO cars in your area, and determine if investing in a CPO vehicle is the right choice for you. So get started now and find a few used and CPO cars at your nearest dealership. You’re sure to find a great deal.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.