What is a certified used car?

Certified used vehicles or CPO vehicles are used vehicles that have been inspected and are covered by a manufacturer's warranty. CPO programs cover vehicle problems or defects.

Not everyone can afford to buy a new car. For those without the right budget, credit history, or people unwilling to pay the higher insurance premiums associated with new cars, buying a used car can be a daunting concept if you don't know the history. Having the option to purchase a Certified Pre-Owned Vehicle (CPO) usually makes consumers feel confident about the vehicle they are purchasing and will drive. These vehicles are supported by the manufacturer in a similar way to a new model with a reduced price.

Here are some facts about certified used cars and why you should consider them a smart investment.

What is considered a certified used car?

Not all used vehicles can be certified. They must meet strict requirements before a label can be affixed. This is a later model, usually less than five years old, with low mileage. It may or may not be covered by the original manufacturer's warranty, but it is covered by some kind of warranty. In most cases, the CPO process for a vehicle begins during a pre-delivery inspection or a similar inspection at the dealership.

Any vehicle model can be a CPO, be it a luxury sedan, sports car, pickup truck or SUV. Each manufacturer sets its own criteria for car certification, but they are all similar. Certified vehicles first hit the market in the late 1980s and early 1990s. High quality manufacturers such as Lexus and Mercedes-Benz have started selling their used vehicles. Since then, CPO vehicles have become popular and are now considered the third category in the auto sales market.

How is the certification process going?

To receive a certificate, a used car must pass a thorough inspection. Each brand determines how extensive the verification is, but they all include at least 100-point verification. This goes way beyond a basic safety check to major components and even the condition of the interior and exterior.

A vehicle that has not been thoroughly tested will not be certified. There may be a warranty, but not from the manufacturer.

Most manufacturers have a mileage limit of less than 100,000 miles for a vehicle to qualify for CPO, but some are cutting mileage even further. The car could not have been in any major accidents or had significant body repairs. The vehicle will be repaired after inspection with any repairs carried out in accordance with established standards.

Understanding the benefits of CPO

Each brand defines its own certification program and the benefits it provides to customers. In many cases, a CPO car buyer will enjoy the same benefits as a new car buyer. They can get car loans, roadside assistance, better interest rates and financing terms, a transfer for repairs or maintenance, and free maintenance for a certain period.

Many people are attracted to certified used cars because they can get a more expensive model than if they were buying a new car. They also enjoy the peace of mind that comes with a guarantee and verification. In addition, most manufacturers provide a vehicle history report that the buyer can review.

Some programs provide benefits similar to car clubs. They often include roadside assistance for the duration of the warranty or even longer. They can provide trip interruption insurance coverage that reimburses the owner for the cost of breakdowns while the person is away from home. They often provide a short-term exchange policy that allows a person to return a car for another one for any reason. The term is usually only seven days or another short period and is focused on customer satisfaction.

Many programs include add-ons that can be purchased at a discounted price. For example, buyers may have the option to purchase an extended warranty after the initial CPO warranty expires and include it on credit at no upfront cost.

Who is the leading manufacturer offering CPO programs?

Compare program benefits to see which manufacturers offer the best options for your needs.

Hyundai: 10 years/100,000 mile drivetrain warranty, 10 years unlimited mileage, roadside assistance.

Nissan: 7-year/100,000 limited warranty with roadside service and trip interruption insurance.

Subaru – 7 year/100,000 mile warranty with roadside assistance

Lexus – 3 year/100,000 miles limited warranty with roadside support

BMW: 2 years/50,000 miles warranty including roadside assistance

Volkswagen: 2 years/24,000 miles bumper to bumper limited warranty with road support

Kia: 12 months Platinum / 12,000 year roadside assistance with unlimited mileage

Mercedes-Benz: 12 month unlimited mileage limited warranty, roadside assistance, trip interruption coverage.

Toyota: Full coverage for 12 months/12,000 miles and roadside assistance for one year.

GMC: 12 months/12,000 bumper to bumper warranty, roadside assistance for five years or 100,000 miles.

Ford: 12 months/12,000 miles limited warranty with roadside support

Acura: 12 months/12,000 miles limited warranty with roadside assistance and trip interruption coverage

Honda: 1 year/12,000 miles limited warranty

Chrysler: 3 months/3,000 miles full warranty, roadside assistance

Because not all CPO programs are the same, it's important to compare them and determine which one offers the best deal. Although you will pay more than a simple used car, you may find that the benefits of a certified used car are worth it. If you decide not to use a CPO vehicle, ask a professional AvtoTachki field mechanic to inspect the vehicle first before purchasing.