If you’re looking for a used vehicle with a lower depreciation and price, but the warranty and reliability of a brand new vehicle, consider a CPO or certified pre-owned vehicle. But what is a certified pre-owned vehicle?
What Exactly is a Certified Pre-owned Vehicle?
Not like vehicle obtained via private sellers or those bought from secondhand car dealerships, certified pre-owned vehicles are meticulously inspected based on stringent manufacturer standards and come with warranties backed by the manufacturer. These are typically sold via licensed car dealerships and have mileage and age limits, to make certain that they’re in great running condition. This manufacturer-specific inspection checklist includes 150 or more points, and car dealers also provide a report of the vehicle history as proof of passing the inspection and the vehicle’s current condition.
Purchasing a CPO vehicle that says two years old, would save you approximately 25% versus the price of the same brand new vehicle, while CPO vehicles that are around four years old are usually priced up to 40% lower than their brand new counterparts. Some car dealerships also offer CPO leasing programs, which would significantly reduce your monthly payments.
If that isn’t enough, CPO vehicles also carry ample warranties backed specifically by the manufacturer. Although the exact details of the warranty differ from manufacturer to manufacturer, car dealers like Auction Direct USA explains that in general, these warranties are extensions of the vehicle’s factory warranty, but with relatively less coverage. The coverage terms differ by manufacturer, but note that even the most basic warranties would provide you at least 80,000 miles or six years of coverage starting from the vehicle’s original sale date, whichever occurs first.
Should You Go for a Certified Pre-owned Vehicle?
Buying a certified pre-owned vehicle would absolutely save you more money than purchasing a non-certified pre-owned vehicle and then buying third party warranty for it. And while some are several years old, they’re reconditioned prior to selling, so they usually come with that new vehicle experience, minus the significant initial depreciation.