Certified Used Vehicles or Certified Pre-Owned Vehicles (CPO)

What does Certified Pre-Owned (CPO) mean?

There is no industry standard for CPO programs. Every CPO program is different. Buyer beware!

There is no industry standard for certifying a used vehicle, there is no industry standard for the inspection process, there is no industry standard on who performs a CPO inspection, and there is no industry standard on the type of warranty or the duration of the warranty.

A CPO program is basically some type inspection and warranty. Be sure you understand the CPO inspection is not the same as a pre-purchase inspection and what the warranty covers before you purchase.

Most CPO warranties cover only the drivetrain (engine and transmission). Many used car buyers believe that a CPO vehicle comes with a comprehensive bumper to bumper warranty, only to find out they are responsible for nearly all repairs. In most cases, a used car buyer can purchase the same warranty coverage for less than the extra money spent for a Certified used vehicle.

Despite the benefits associated with manufacturer-certified used cars, consumers still need to be careful. Consider these potential drawbacks:

  1. There are no industry standards for certifying used cars.
  2. Dealer inspections may not be s comprehensive a a pre-purchase inspection or performed by Master Technicians.
  3. While most experts will tell you that certification adds value to the retail price of a used car, it does not contribute to its eventual resale value.
  4. Many financial institutions don't deem that a certified used vehicle is worth more than a used vehicle of the same year and mileage. You may need to convince the lender to loan you the additional amount.
  5. Certification vehicles offers no guarantee that you will have fewer problems than a non-certified vehicle. Just because a car is certified, does not mean that is it better than any another well maintained used car.

You cannot negotiate your best deal until you know the EXACT condition of every component and system.

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