It's no secret that the cost of a certified pre-owned vehicle is higher than that of a regular used car. Certified pre-owned vehicles cost more than traditional used cars for a variety of reasons. However, for many buyers the benefits of CPO cars outweigh the additional costs.
Each buyer has to decide for him or herself if CPO is the way to go. But if reducing stress, eliminating question marks, and walking away with peace of mind is the buyer's goal, then a CPO vehicle should be strongly considered. One major point a buyer needs to keep in mind is that certified cars cost more than used, but less than new.
1. The Warranty
Ask owners of certified vehicles why they made their purchase and the
number-one reason is usually the factory-backed warranty. For many people,
paying an extra $1,000, $2,000, or more for a used vehicle with an extended
factory warranty is well worth the expense.
2. Vehicle Inspection and Certification
CPO buyers are also willing to pay extra to ensure that the vehicle they
are purchasing isn't going to break down any time soon. That's the point of
the certification process, and every certified pre-owned vehicle,
regardless of who made it, undergoes an inspection and certification.
3. A Buy-Back or Exchange Program
Building on customer trust, the buy-back or exchange policy on many
certified used cars is the deal closer. It's a pressure-free way the
consumer can try out the vehicle, and even exchange it if a buyer changes
his or her mind. This is often the final straw that offsets the additional cost of
a certified vehicle.
4. Factory Financing or Incentives
Because certified cars are usually among the most expensive on the used-car lot,
many buyers need a little financing help or cash incentives to step up to
the plate. Because the manufacturer backs a CPO vehicle, the automaker
often throws incentives or cut-rate financing into the mix to help close
the deal.
5. Roadside Assistance
In many cases, CPO buyers get the added security of roadside assistance,
just like many new-car buyers. This further reduces the hassle of
ownership, because buyers can rely on the manufacturer to come through in a
roadside emergency.
1. Cost
A CPO vehicle can cost several thousand dollars more than a similar used
car. In many cases the only difference is the factory warranty, which can
be purchased elsewhere, and often for less money.
2. What Does "Certified" Mean?
Each manufacturer defines "certified" differently. It's up to the consumer
to get the certification details on paper. Vehicles with structural damage, mechanical damage, lemon-law
buy backs, salvaged vehicles, vehicles with tampered odometers, and those
that have been damaged in a flood should be disqualified from CPO programs.
3. No Guarantee
Just because a vehicle is certified doesn't mean that it will be trouble
free. Like any new or used vehicle, you run the risk of a major repair
right around every corner. The warranty programs of many CPO vehicles will
cover these repairs, but sometimes they are excluded, so it pays to read
the fine print.
4. Availability
Because the manufacturers back the certified programs, you have to go to a
participating dealer to get the vehicle you might be considering. In many
cases, that isn't as convenient as the used-car lot down the block or the
classified ads. Also, you may have to look far and wide for a certified
version of the car you want.
Factors like warranty, certification, and cost will always differ from car to car. Educated consumers who know the difference between certified used cars and traditional used cars will be able to make the wisest choice when it comes to purchasing a new vehicle, and deciding whether or not the markup is worth it.