Are you looking to purchase a used car? You probably saw options for a certified pre-owned (CPO) car.
“A certified pre-owned car meaning…what, exactly?”
A CPO is an affordable alternative to new cars. When someone returns or sells a vehicle, the dealership will check its condition and find out if it meets their CPO program requirements.
With very few miles, a newer model CPO can seem brand new. Dealerships may not even accept a used car if the model is more than six years old.
A CPO is well-maintained and cared for, which makes it a popular choice for car buyers. If you’re interested in purchasing a CPO, then keep reading to learn more!
What Is a Certified Pre-Owned Car?
A certified pre-owned car is a used car that is in great condition and is about less than three years old. These cars usually have fewer than 12,000 miles and hardly show any signs of use.
In the 1990s, dealerships started making CPO programs because their cars were returned in like-new conditions. Instead of auctioning them, their CPO programs let them sell the cars along with added warranties, perks, inspections, and reconditioning.
A vehicle normally gets numerous checks from a mechanic to make sure that it passes the CPO program requirements.
Many car buyers are considering hybrid cars due to the balance of energy/gas usage. The good news is that you can find the cheapest Hybrid car by going through CPO programs.
The Price
Compared to the average used car, a CPO will cost a bit extra. This is because of the rigorous inspections, repairs, and added bonuses that you receive as a buyer.
It is well worth the extra cash to purchase a CPO. When car buying, thinking long-term will give you more bang for your buck. You don’t want to purchase a vehicle that will need 30 different repairs in the span of one to two years.
By that point, you’ve already spent an extra few thousand dollars in repairs.
But a CPO is way cheaper than a new car because it is technically a used car. Except, a CPO grants the buyer peace of mind that it has been thoroughly inspected and should not present many issues.
CPO Programs
When you buy a car, you should consider different CPO programs. There are two main types: luxury and non-luxury.
A luxury CPO program, like the name, is used for luxury vehicles. This includes Lexus, Porsche, and Volvos. Luxury CPO programs are a bit more strict when it comes to guidelines.
For example, the Mercedez-Benz program requires a car less than six years old that has less than 75,000 miles. The Toyota CPO program, a non-luxury program, requires that the car is less than 7 years old and has no more than 85,000 miles.
The Mercedez-Benz program will check vehicles against 164 points and will transfer the original warranty to the new owner. If the warranty is expired, then the CPO purchaser will receive a one-year warranty as a courtesy.
Toyota, on the other hand, checks the vehicle under 160 points and gives every purchaser a 12-month warranty. But, they also charge a $50 deductible for covered repairs.
As you can see, there are a few differences between luxury and non-luxury CPO programs. First, think about the car you are interested in and see which category of CPO programs it falls under. Then, do your research and find out the key takeaways of their program.
This way, you’ll be able to find the car that best fits your budget.
Pros and Cons
When buying a certified pre-owned car, the pros outweigh the cons. Here is a list of some of the pros:
- Lower risk
- Lower APR
- Extra Perks
- Nicer Car
Between buying an average used car and a CPO, there is a lower risk when purchasing the CPO. This is because of the inspections and warranties that the vehicle has.
Oftentimes, car dealerships will offer special APRs for CPOs. Sometimes, there will even be a 0% APR! When qualifying for an APR rate, your credit score impacts the outcome. Having good credit is key to a low APR.
As mentioned before, there are plenty of perks when buying a CPO. Almost every manufacturer offers roadside assistance and free oil changes. Some companies offer free trials for SiriusXM, too.
Better yet, companies like General Motors offer a free exchange within three days or 150 miles if you start to change your mind.
There are very few cons when considering a CPO, but they are usually justified. As said before, CPOs tend to be pricier than your average used car. With the benefits and perks attached to a CPO, there’s no wonder why that is.
And the rise in price isn’t by much.
A certified used Honda Civic will cost about $300 more than a non-certified option. But with this $300, you receive a full one-year/12 miles warranty.
Keeping your CPO in good condition may be of concern, especially with the cold climate of Canada. As an example, you don’t want to damage your car by warming it up for too long in the winter.
When you let your car warm up, the oil gets to properly disperse through every part. It is recommended to allow your car 30 seconds to a minute before driving.
Now that you know how long to warm up the car, it may be hard to adjust to the average 20 minutes you take so that you’re nice and warm. But if you want your CPO to be worth that extra money, you have to treat it well.
Certified Pre-Owned Car Meaning
When you buy a car, new, used, and CPO models are your main options. You must take into account your budget per month and credit score to find the best choice. Before this article, you may have questioned:
“A certified pre-owned car meaning…what, exactly?”
Now, you know that a certified pre-owned car includes great deals, benefits, and peace of mind.
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