If you’re shopping for used cars, you might see the term CPO at certain branded dealerships. This stands for Certified Pre-Owned and is a designation for used vehicles that means it’s had a thorough inspection and includes a manufacturer’s warranty. For many buyers, this ensures more peace of mind and potentially better reliability.
Key Differences Between CPO and Regular Used Cars
The biggest difference between CPO and regular used cars is that CPO cars are subject to a rigorous inspection that must meet the manufacturer’s standards. Any necessary repairs are made before the vehicle is offered for sale. The reason for the extra scrutiny is that CPO vehicles come with a manufacturer’s warranty.
Regular used cars typically don’t have any warranty, unless there’s time remaining on their original new vehicle warranty or if the dealership offers a warranty. These vehicles may or may not undergo stringent inspections before being offered for sale.
In terms of price, CPO vehicles tend to cost more thanks to the warranty benefits and additional inspections and repairs. In most cases, CPO vehicles also tend to have lower mileage and a clean history. It’s possible to find this in regular used cars, but it’s more or less guaranteed in a CPO car.
Benefits of Choosing One Over the Other
The benefits of buying a CPO vehicle include an extended warranty, rigorous inspection, lower mileage, and the peace of mind you get from knowing that the vehicle has essentially been refurbished to like-new condition. On the other hand, you have more options with a standard used vehicle. There are generally a lot more regular used cars available to choose from at any given dealership.
The other benefit of buying a regular used car is the price. CPO cars are priced higher to account for the extra work put into them and the manufacturer’s warranty. You’ll often have a lot more room to negotiate the price of a regular used car. If your needs are highly specific, you might look at regular used cars as there’s more to choose from.
How To Choose
The best choice between a CPO and a regular used car depends on your budget and what you need. If you’re on a tight budget or are looking for something very specific, a regular used car is likely to meet your needs. However, if your main concern is reliability and peace of mind, a CPO vehicle will probably be better.
Availability might be a big factor in today’s market, as many vehicles destined for CPO programs came off leases in the past. In the last five years, the lightly used market has seen tight inventory. If selection is important to you, it might be easier to look at regular used cars.
Price and Selection
Price is another consideration. The average price for a CPO vehicle is over $35,000, which is still quite a bit less than the average price for a new vehicle. However, the average price of a used car, not including CPO, is around $25,000.
To sum up, if price and selection are your biggest concerns, then a CPO might not work, but if you value peace of mind and want to save money over buying new, then a CPO is your ideal choice.
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