Exploring the Benefits of Certified Pre-Owned Vehicles

Are you searching for value on a vehicle purchase?

Certified pre-owned vehicles have been steadily growing in popularity. They offer a sweet spot between buying brand new or a regular used vehicle.

Imagine getting all the benefits of a new car without the hefty sticker price. You still have warranty protection and solid reliability.

Welcome to the world of CPO vehicles.

In This Guide:

• What Makes CPO Vehicles Different?

• Key Benefits of Buying CPO

• What To Look For At Dealerships

• Is a CPO Vehicle Right For You?

What Makes CPO Vehicles Different?

You may be used to seeing CPO, or certified pre-owned, vehicles as nothing more than fancy used cars. But the truth is there's a lot more to them.

Simply put, a certified pre-owned vehicle is a used car that has met certain manufacturer quality standards. If it passes the manufacturer's inspection and detailed report, the vehicle is given the certification.

Think of it like a quality guarantee or stamp of approval.

Most manufacturers limit their certified pre-owned programs to vehicles less than six years old with less than 70,000 miles on the odometer.

Plus, every CPO car goes through a multi-point inspection that can include over 300 checkpoints. Every detail from the body to the engine to the interior gets scrutinized.

From there the vehicle is passed with certification to a dealership for the end customer to purchase. When you buy from reputable mazda dealers for example, it means added quality checks along with manufacturer-backed warranties.

And if something is wrong on inspection?

The vehicle gets repaired or else it does not get certified. The choice is easy for any buyer.

Key Benefits of Buying CPO

So why should CPO even be on your radar? What are the actual benefits of buying a certified pre-owned vehicle over the traditional used car or a new one?

Read on…

Extended Warranty Protection

A certified pre-owned vehicle comes with extended warranty protection, often from the manufacturer.

CPO programs typically offer one year or 12,000 miles of bumper-to-bumper coverage in addition to the original factory warranty.

Some even offer up to seven years of powertrain warranty coverage. That is some serious extended warranty protection against costly repairs.

The warranty itself could save you thousands down the road on potential repair bills.

Rigorous Quality Standards

Think back to the multi-point inspections above.

A dealership cannot slap a certified label on any old vehicle. The car has to pass every single point on the inspection.

Consumer Reports found that CPO vehicles had about 14% fewer problems than regular used cars.

That's a major difference.

Inspections weed out cars with:

• Hidden accident or flood damage

• Odometer fraud

• Salvage or rebuilt titles

• Major mechanical issues

The car must meet stringent quality standards and only the best make it to the dealership lots for sale.

Significant Cost Savings

New vehicles depreciate as soon as you drive them off the lot.

The highest rate of depreciation happens in the first few years. You get to eat that depreciation instead of passing it onto the next owner by buying a certified pre-owned vehicle.

The cost premium of a CPO over a noncertified used vehicle is only about 1.8% more according to Kelley Blue Book data.

In exchange for that small premium you get the added value of warranty protection and manufacturer-backed quality checks.

Added Perks and Benefits

The extras, or added value benefits, that some CPO programs offer include things that make car ownership a smoother ride.

For example, many certified pre-owned vehicle programs offer:

• 24/7 roadside assistance

• Vehicle history reports

• Free maintenance visits

• Rental car reimbursement

• Trip interruption coverage

The benefits stack up quickly and can make ownership more enjoyable. Roadside assistance is a major plus for some people.

What To Look For At Dealerships

Buying a certified pre-owned vehicle from a dealership is not as simple as just buying the first CPO sticker you see.

Each manufacturer's CPO program is different. Make sure you know the facts and do your homework before signing on the dotted line.

Verify the Certification

One of the first things you need to verify is the certification itself.

Some dealerships have their own in-house used car certification programs. These are not the same thing as a manufacturer-backed certified pre-owned program.

A dealership may use terms like "pre-certified" or "certified used" to advertise these programs. The inspection and warranty support may be nowhere near as extensive.

Ask to see proof the vehicle in question has passed a manufacturer inspection process.

Understand the Warranty Terms

Read the warranty information carefully before buying.

Warranty terms vary by brand and program. Some programs offer comprehensive bumper-to-bumper warranty coverage. Others mainly cover the powertrain components.

Find out exactly what is covered and what isn't. Some programs have deductibles, which are per visit fees for each repair visit.

Request the Inspection Report

Any legitimate certified pre-owned vehicle has a detailed inspection report.

The inspection report documents exactly what was inspected and what repairs were completed. If a dealership can't produce this report, you have found your red flag.

The inspection report should prove that the vehicle was well cared for and detailed inspection completed. You are also buying a vehicle that has been thoroughly inspected by a professional.

Is a CPO Vehicle Right For You?

Certified pre-owned vehicles make a lot of sense for most people shopping for a car.

If you're tired of the breakneck depreciation of new cars but are not ready to deal with the risk of regular used vehicles, go CPO.

The marketplace is there for you. Certified pre-owned vehicle sales reached about 2.5 million units in 2024 per Cox Automotive data.

That's a huge number of buyers saying they trust CPO over other types of used cars.

But if your budget is extremely tight, a well-maintained regular used car could help you save. Comfortable with a little bit of risk and a gamble? Save that extra 1.8%.

If reliability is a top priority and you can stretch your budget just a little more, go for the CPO.

In the end it comes down to your needs and what you want to get out of the purchase.

Wrapping Things Up

Certified pre-owned vehicles are a popular hybrid in the auto market space these days.

They offer the benefits of a newer vehicle but come with warranty protection for a much lower cost. Plus they bypass that hefty initial depreciation that comes with a new car purchase.

To quickly recap here are a few of the key benefits of CPOs:

• Thorough multi-point inspections

• Extended warranty coverage

• Big savings over new vehicles

• Extra perks and benefits

Ready to find your next CPO car or truck? Visit some reputable and recognized dealership outlets that offer manufacturer-backed certified pre-owned programs.

Ask for inspection reports and warranty information in writing. Do your due diligence and you'll have a quality car that fits your needs and your budget.

That's smart car buying.