Certified Pre‑Owned Cars: What You Need to Know Before Buying

In a market where the average new car costs over $47,000, many buyers are turning to certified pre‑owned (CPO) vehicles for a cheaper yet reliable option.

What Is a Certified Pre‑Owned Vehicle?

A certified pre‑owned car is a low‑mileage, accident‑free used car that is typically less than 7 years old and has been reconditioned to meet strict manufacturer or dealer standards. Backed by an extended warranty from the original manufacturer, CPO cars have undergone a rigorous, multi‑point inspection to achieve Certified Pre‑Owned status. The inspection can cover up to 300 items performed by trained technicians, and buyers can request a copy of the inspection report to see exactly what was covered. Many CPO vehicles also come with added perks such as roadside assistance, replacement or loan vehicle access, and trip interruption protection.

The Benefits of Buying a CPO

Savings

Certified pre‑owned cars are less expensive than new cars. According to a recent iSeeCars study on the cars that hold their value best, the average used car depreciates by 16.9 percent over three years. Buying a lightly used car allows you to save money by purchasing a vehicle after it has taken its main depreciation hit. In addition, CPO cars often hold their value better after purchase and have lower maintenance costs due to warranty coverage. CPO vehicles frequently come with special financing rates that are better than what’s often found on non‑certified used cars.

Modern Vehicles

Although you’re buying a pre‑owned car, you’re still buying a modern late‑model vehicle. Many CPO vehicles are 2‑3 years old, which means they are often in the vehicle’s current model generation and have the same basic styling as new models, along with the latest vehicle technology. If driving a modern car isn’t a priority, you can find an older version for even more added savings.

Added Peace of Mind

To qualify as a CPO vehicle, a car must pass a rigorous multipoint inspection of up to 300 items by trained technicians. You can even request a copy of the inspection to see exactly what was covered. CPO vehicles come with factory warranty coverage that generally includes a limited powertrain warranty for the engine, transmission, and major mechanical components, as well as a limited bumper‑to‑bumper warranty for other issues that may arise that aren’t part of the powertrain. CPO warranties also extend coverage beyond what the manufacturer offers for a new car. This coverage can ease anxiety of buying a used car, because it means that you won’t be on the hook for expensive repairs shortly after purchasing your vehicle.

Potential Drawbacks to Consider

Limited Options

If you’re looking for a vehicle in a specific color and trim, you might have trouble locating a CPO version of the car you want. Because CPO cars have to follow a certain criteria and are the cream of the crop of used vehicles, inventory is more limited than what you would find for non‑certified traditional used vehicles.

Added Cost

While CPO cars cost less than new cars, they often cost more than traditional used cars. When looking at the extra cost, it’s important to understand the extra protection you’re getting to see if it’s worth it. One way to check is to compare it to a comparable non‑certified used car and to research its estimated repair costs during the warranty period. Remember, CPO cars are often negotiable, so you may be able to talk a dealer down to a price that is more budget‑friendly.

Required Maintenance Schedule

One potential downside to a CPO vehicle is that CPO programs require that you follow the manufacturer’s maintenance schedule for services like oil changes and tire rotations. Not adhering to this schedule could void your warranty. This maintenance work also has to be done at a franchised dealership, which could be a potential drawback if you have your own independent trusted mechanic. Some CPO programs include a deductible for all covered repairs, so make sure you understand the terms of the warranty and that even covered repairs can come with a cost.

Bottom Line

Consumers should always do their research before making a final decision to buy a CPO car. In some cases, buying a certified pre‑owned car may not add a significant amount to the cost of a traditional used vehicle and could even save you money in the long term if you take advantage of special financing deals. Conversely, some CPO cars come with expensive premiums that may outweigh what you would pay in maintenance costs. Vehicles that have strong reliability and low maintenance costs can be smarter used vehicle purchases because you likely won’t need to make repairs that are covered by the CPO warranty.

Key Takeaways

• Certified pre‑owned cars are less expensive than new cars and often hold their value better after purchase.
• A rigorous inspection and extended warranty give buyers added peace of mind.
• Limited inventory, higher price than traditional used cars, and required maintenance can be drawbacks.

Buying a CPO vehicle can be a smart move if you weigh the benefits against the cons and research the specific vehicle and dealer carefully. With the right choice, you can enjoy a modern car at a lower price while still enjoying many of the protections that come with buying new.

More from iSeeCars.com

If you’re interested in a new car or a used car, be sure to check out iSeeCars.com’s award‑winning car search engine. It uses advanced algorithms to help shoppers find the best car deals across all vehicles, and provides key insights and valuable resources, like the iSeeCars free VIN check report and Best Cars rankings. You can even search for just CPO cars. Filter by make, model, interior color, exterior color, price, fuel type, and special features to find the best deal on your next vehicle.