The Truth About Certified Pre-Owned (CPO) Cars

On February 16, 2025 By newsroom Topic: Automotive

What Are Certified Pre-Owned Cars?

CPO cars are used vehicles vetted and refurbished to meet higher standards.
- Key Features:
- Lower mileage and cleaner condition than traditional used cars.
- Typically come with an extended manufacturer-backed warranty.
- Pass a multi-point inspection for defects or necessary repairs.
- May include perks like roadside assistance, loaner cars, and temporary free satellite radio.
- Cost:
- On average, 1.8% more expensive than non-certified used cars.

Are CPO Cars Worth It?

Better Reliability:
Vehicles bought as CPO have 15% fewer problems than other used cars.
Reliability is crucial, as some models are inherently more dependable than others.
When It’s Worth It:
If you value peace of mind and are willing to pay for it.
When purchasing models known for their reliability.
Potential Risks:
Not all "certified" cars are backed by automakers.
Some are certified by dealers or third-party programs, which may lack transparency and consistent standards.
Third-party warranties can complicate claims or repairs, especially at different facilities.

How to Avoid Pitfalls with CPO Cars

Verify Certification:
- Ensure it’s backed by the automaker, not a dealer or third-party program.
- Ask for official documentation of the certification.

Check Transferability:
- Confirm the warranty transfers to future owners if you plan to sell the car later.

Research Reliability:
- Use online resources to check model reliability before buying, even for CPO vehicles.

Precautions When Buying Used Cars

Inspection:
- Always have the car inspected by an independent mechanic.
- Avoid relying solely on dealership inspections.

Vehicle History:
- Obtain a report from services like Carfax or AutoCheck.
- Use the VIN on safercar.gov to check for open recalls.

Budget for Repairs:
- Non-certified cars lack extended warranties; set aside an emergency repair fund.

Factory-Backed Warranties:
- If the car is still under its original warranty, consider purchasing an extended warranty directly from the manufacturer.

Negotiate:
- The price of CPO cars and extended warranties is often negotiable.

When to Choose CPO Over Traditional Used Cars

Buy CPO:
If extended warranties and thorough inspections are priorities.
If you value added perks like roadside assistance or discounted loan rates.
Buy Traditional Used:
If saving money is a top priority.
For models with excellent reliability scores that don’t require the CPO premium.

Bottom Line

CPO cars offer a blend of reliability, warranty coverage, and added perks, making them a good option for cautious buyers. However, the higher cost may not always be justified, especially if you prioritize savings over convenience. Always verify certifications, check reliability, and negotiate terms to get the best value.