Understanding Certified Pre-Owned Vehicles

Have you encountered the term ‘certified pre-owned’ (CPO) while browsing used cars online or at dealerships? So, what exactly qualifies a vehicle as certified pre-owned?

Unlike private sales or independent used-car dealers, CPO vehicles undergo inspections based on the manufacturer’s standards and come with a manufacturer-backed warranty. These cars are sold through authorized dealerships and usually have mileage restrictions.

Before purchasing a certified pre-owned vehicle, here are some important facts to consider.

Certified pre-owned cars may not always be cheaper than you think
Many buyers believe CPO cars are more expensive, but studies suggest they often cost about $700 less than comparable used cars. Brands like Jeep, Dodge, Subaru, Honda, and Chevrolet offer reasonably priced certified options.

Inspect certified programs carefully
Be cautious of dealers that simply refurbish used cars and label them as certified without meeting manufacturer standards. Always verify whether the certification is backed by the manufacturer, ensuring the warranty’s reliability.

Variations in certified programs among manufacturers
Different automakers offer varying warranty durations; some provide 12 months and 12,000 miles, while others extend up to five years or 100,000 miles for powertrain coverage from the original sale date.

Car age doesn’t matter much
Certified pre-owned vehicles can range from two to three years old, often leased vehicles returned after use. Some brands also list cars that are six or seven years old with over 50,000 miles on the odometer.

No guarantee of defect-free cars
Even certified vehicles can sometimes have issues that inspections miss or problems originating from prior ownership. It’s important to understand that no used car is entirely problem-free.