Should You Buy a Certified Pre-Owned Car?
Updated August 2019
Certified Pre-Owned or CPO cars might look expensive compared to other used cars, but there’s a reason for that; they’re inspected and checked to ensure that it’s a quality car. But if you’re looking to buy a new car, a CPO car will look like a bargain.
Here’s how a CPO offer compares to either a new car or a used car.
CPO vs. New:
See Also: Use Car Pre Purchase Inspection: 10 things to get checked out
A CPO car also gets a decent warranty, although not as long lasting as a new-car warranty. This is because as an older car, there are more parts that are wearing out, and it would be tough to guarantee the lifespan of these components. While CPO warranties differ from manufacturer to manufacturer, few automakers offer more coverage than two years or 50,000 miles after the CPO purchase date, meaning there’s still a decent amount of coverage, just not as much as a brand new car. The vehicles’ original powertrain warranty can also get an extension, depending on the certification process.
Overall, those looking to trade some warranty coverage for some extra money should consider getting a CPO over a new car. It might not be as fresh, but the extra change in your pocket is much appreciated, and there’s still some warranty coverage in case something goes wrong.
CPO vs. Used:
There’s always a concern of reliability and safety when buying a used car. Honesty is the hardest thing to come by when buying from a private seller. Important service details might be missing or fabricated, and you might not know how rough of a life a used car may have had. The only way to get peace of mind comes with a pre-purchase inspection, and a service contract or third party warranty.
Additionally, CPO cars come with a warranty, something that the usual used car rarely offers. While any used car can get a third party warranty or service contract, the credibility of these services is questionable.
See Also: Should You Buy A Car with 200,000 Miles?
On the flipside, CPO vehicles are significantly pricier than other used cars, and price is what usually drives buyers to the used car market. If you’re looking to pinch every penny, a CPO car won’t help much with that. You can still get a pre-purchase inspection and extended warranty or service contract for less than a CPO vehicle. Fortunately, since most certified pre-owned cars are sold at dealerships, securing a way to finance the car is easy, safe and secure.
But if you’re fed up with the uncertainties of used car buying, a CPO offer is the right choice for you.
Are Certified Pre-Owned Cars More Expensive?
In short, the answer is yes… but for good reason.
Exactly what the difference is can depend quite a bit, especially on luxury models and brands. Regardless, expect to pay a few thousand dollars extra for a CPO car, or up to as much as 20 percent more. While that sounds like a lot, it’s important to remember that CPO cars are held to a very high standard and so it’s really an apples to oranges comparison to look at CPO inventory versus non-CPO inventory, because the majority of non-CPO cars will be sub-standard and probably not models worth looking at.
True, you’re paying for the CPO warranty on these cars, but we think the real value comes with the fact that dealerships only offer the very best used cars as Certified Pre Owned cars.
Sami has an unquenchable thirst for car knowledge and has been at AutoGuide for the past six years. He has a degree in journalism and media studies from the University of Guelph-Humber in Toronto and has won multiple journalism awards from the Automotive Journalist Association of Canada. Sami is also on the jury for the World Car Awards.
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Just buy a regular used car. Why waste all that money and BS dealing with a supposedly legit dealership.