SHOPSMART AUTOS – CUSTOMER INFORMATION – JULY 10, 2021 (PT.1)
Certified Pre-Owned Cars vs. Non-Certified Used Cars
After choosing to buy a used car instead of a new one, you have to make a choice: should you buy a certified pre-owned (CPO) model, or go for a traditional used vehicle? Both choices have their own pros and cons. Typically, a CPO car, truck, SUV, or minivan will have a higher price, but they have a lot of perks similar to those of a new car – primarily a multi-point inspection and warranty coverage directly from the carmaker. Non-certified models will likely cost much less, but you won’t get the reassurance of knowing it’s in good working order nor have the protection of a factory warranty. We’ll explore these pros and cons more in the following sections, and help you decide which option is best for you.
What Is a Certified Pre-Owned Car?
A factory-certified pre-owned car (CPO car) is a gently used vehicle sold by a franchised new car dealer of the same brand. They’re typically gently used, accident-free, low-mileage vehicles that are only a few years old. Not long ago, only luxury automakers had CPO programs. Today, nearly every automaker offers certified used vehicles, including cars, pickup trucks, SUVs, and minivans. They’re different from other used cars in that they typically come with warranty coverage backed by their original manufacturer. Not every car displayed on a dealer’s lot will be a certified pre-owned vehicle. While each automaker’s program has different specific requirements, CPO vehicles have to be below a certain age and mileage, have records showing they have been well-maintained, plus have the ability to pass a rigorous inspection process. You will only find factory CPO cars at dealerships of the same brand. For example, you will only find a certified pre-owned Honda CR-V at a Honda dealer. If you see one marked “certified” on a Toyota dealer’s lot, it won’t be a factory-backed CPO vehicle. Many of the vehicles sold through automakers’ CPO programs are lease returns. While they might not have all of the latest tech features found on new cars, they will be relatively new and come with warranties backed by the automaker, not a third party or individual dealer.
How Do Cars Become Certified?
Every carmaker sets their own requirements for a vehicle to be certified. However, each program requires their models be from a certain set of recent model years and have relatively low mileage. CPO models must also have been properly maintained following the owner’s manual and have a collision-free history.
CPO Inspection and Refurbishment
The dealer will then inspect the vehicle and, if they elect to declare it a certified pre-owned vehicle, refurbish the car to the standard set by the CPO program. The number of inspection points advertised by various automakers differs, but it’s really not important. What passing the inspection means is that the car is in good enough shape that the carmaker will provide warranty coverage for the new owner.
Non-CPO Used Car Inspections
A non-CPO vehicle may or may not be inspected by a dealer and will likely only receive enough refurbishment to make it attractive for sale. Since dealers typically don’t provide warranty coverage on non-CPO used cars, there’s no reason for them to make extensive mechanical repairs. Once you drive used cars that are not certified off the lot, any problems or mechanical breakdowns are your responsibility. The same goes for private-party used cars. It’s buyer-beware, and you should not expect any assistance from the seller once you have signed the paperwork and assumed ownership of a pre-owned vehicle. That’s why it’s always important to get a non-CPO used car inspected by an independent mechanic before you buy it from either a dealership or a private party.
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