Posted Thursday, August 11, 2022
A certified pre-owned vehicle is a used car that has been repaired and thoroughly inspected to get the approval of the factory-backed limited warranty. CPO vehicles are assumed an affordable alternative to the new ones.
When someone sells a vehicle or returns a rented one, dealerships assess its condition and find out if it meets the CPO program requirements.
As an example, let’s consider the Volkswagen CPO program. Each car must meet the following requirements:
If the vehicle meets these requirements, a factory-trained mechanic will conduct more than 100 checks to ensure that it can be classified as certified pre-owned.
The dealership performing this certification repairs and replaces anything that has been worn beyond the program limits. If the mechanic finds problems, everything will be fixed to keep the car just-like-new.
Any Volkswagen comes with a 24,000/2 year limited warranty on transmission, air conditioning, and electrical system. Volkswagen also provides 24/7 roadside assistance for two years to ensure peace of mind.
Like traditional programs, luxury CPO will vary from one manufacturer to another. Let’s take the Mercedes-Benz program to give you an idea of how the luxury CPO works.
For cars to meet the Mercedes CPO criteria, they must:
The eligible vehicles are then checked against 164 points.
If the original warranty (50,000 miles / 4 years) is still valid, the warranty will be transferred to the CPO purchaser. If the original warranty has expired, the owner will receive another year of certified unlimited mileage warranty.
There is also the option to purchase additional coverage, which also includes unlimited mileage. Extras covered by this program include 24-hour roadside assistance and travel reimbursement for covered repairs.
Non-luxury CPO programs also vary widely. As an example, we take the Toyota CPO program.
Qualified vehicles will undergo a 160-point inspection and must have history reports completed.
Every certified used Toyota receives a 12-month warranty and a 100,000 miles / 7-year powertrain warranty. Note that the powertrain warranty begins on the original purchase date of the vehicle, not the CPO.
Toyota also includes an annual roadside assistance service, travel compensation, and free rental cars. Travel reimbursement and car rentals are available if the vehicle is covered by repair insurance.
The company charges a $50 deductible for covered repairs.
CPO cars will be more expensive than traditional used cars. This is because you pay upfront for warranty, inspection, and various extras in the hope that you don’t have to spend that money on a car later.
However, there is no exact way to predict what will happen after the warranty expires or how much future repairs will cost. If you choose a used car without a CPO program, you can use the money saved to cover potential future expenses.
Also, CPO programs are not available for older models. If you are looking to buy low-cost, high-mileage cars, CPOs are not your option.
Most certified pre-owned cars come with a warranty, which varies by manufacturer. You may get a vehicle with bumper-to-bumper or powertrain warranties.
The amount you will have to add to the car price will vary, depending on the manufacturer and car model:
Price disclaimer: All rates were taken from open sources to be used as an example and the comparative analysis of cars available for sale at the moment of publication.
If you want to get behind the wheel of a pre-owned vehicle without paying extra for the warranty you may never use, visit Indy Auto Man in Indianapolis. In our high-quality inventory, you will find the models for every taste and budget. Despite the fact that we do not sell cars with a certificate from the manufacturer, we can guarantee their quality and reliability. All vehicles at our car lot go through a comprehensive reconditioning process and service. Our dealership also provides 7-day exchange & 30-day price match guarantee to assure your peace of mind and the best car buying experience.
Contact us today to schedule a test drive of your favorite model to experience it out on the road!