Wealth is not about having a lot of money; it’s about having a lot of options. ~ Chris Rock
If you’re considering buying a new (or kinda new) vehicle…having more options and more money left over are always good things. New or used…private seller or car dealer…and in recent years, something usually sold by new car dealers called “certified pre-owned” (CPO). CPO can be considered as a compromise between new and used that most often has a better warranty (because it’s been thoroughly inspected) and low to modest mileage.
Here are some compelling arguments that a certified pre-owned (CPO) vehicle may be your best bet:
1. Thoroughly Inspected Vehicle
Imagine the feeling you get from seeing “As-Is” on a vehicle’s For Sale sign…or the complete set of “unknowns” that come with buying a car from a private seller. Your first instinct should be to take your prospective purchase to a trusted mechanic and have it thoroughly checked out…for a fee. That’s what CPO effectively does for you in a more formal and convenient way. Ford and General Motors have 170+ items on a checklist that technicians must complete before allowing pre-owned vehicle to be designated as CPO.
2. Warranty that’s Manufacturer-Backed
So you’re effectively paying a premium for a manufacturer-backed warranty. But like any kind of insurance…not all warranties are created equal. So buyers need to pay special attention to the warranty specifics. “Powertrain-limited warranties”… “bumper-to-bumper warranties” and even combinations of the two.
Powertrain warranties typically span longer periods, such as six years or 100,000 miles from the date the vehicle was purchased new. A bumper-to-bumper warranty may last for one year or cover 12,000 miles and could include a deductible of $50 to $100. When shopping for a CPO, buyers should be sure to inquire about the length of the warranty, the details regarding types of repairs that require paying a deductible, and the list of items not covered at all. Also, pay attention to whether the manufacturer has a fee to transfer a CPO warranty should you want to sell the car or truck before the warranty expires. (BMW, for example, charges $200 for the warranty to be transferred to a subsequent owner.)
3. CPO Is Less Money Than New
The most obvious reason why people consider CPO is money…and CPO is less money than a new vehicle. Typically, two-year-old CPO vehicles are 25 percent cheaper, and four year old CPOs are about 40 percent less expensive. But remember… CPO vehicles do carry a premium over their non-CPO used vehicles. So the question for buyers becomes: Do the additional benefits of buying a CPO justify the higher price?
Like to see a couple more reasons?
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