People who don’t have a budget set for a new car will step out for traditional used cars or certified pre-owned models. Apart from the new car, customers get the choice between used cars. Both have their advantages and disadvantages. You can get the example of the certified pre-owned car, truck, and SUV, the price is higher still they have many offers compared to new cars. However, the price of traditional used cars will cost you less but you don’t get the extra perks with the car like warranty coverage and more. Here, the full details of certified pre-owned cars are mentioned so that you can decide whether buying through CPO is worth it or not?.
Certified pre-owned or CPO used cars are useful for buyers, who want to avoid the risk associated with the used cars. It is different from the other used cars. They carry certified qualifications like roadside assistance, limited warranty, and loaner cars. These cars will cost you more than used cars but lesser than new cars. The price of CPO is higher because it gives the customer the satisfaction that they are buying the car with security and an additional warranty.
Used cars consist of various uncertainty and do not provide any security measures after buying the car. The main goal of the CPO is that you pay a reasonable price compared to the new car and minimizes the risk linked with the used one. These CPO programs are managed by the auto manufacturers and third party people that includes outlets and other dealerships. The CPO also gives you information about accident history, number of miles on cars, age of the car, and more.
Many luxury and non-luxury cars are best certified for pre-owned car programs like Hyundai, Kia, GM brands ( Buick, Chevrolet, and GMC)., Mazda and Honda, Porsche, Lexus, Volvo, LandRover, and Jaguar.
When cars are produced by auto manufacturers then they continue the production for five to six years. Through CPO you will get the current-generation model by buying a two to three years old generation model early in the production life cycle. So you will get a car that has time to be replaced by all-new models.
The first few years of the car will be higher for you but after three years a car’s value is downgraded by 30 % of its actual value. This is the fact that the CPO model will cost you less than the new model with the same features. Additionally, some CPO programs also offer the same finance rate for the car, in fact, lower than the new one.
Sometimes CPO also guarantees to repurchase the car in case of accidents like floods or fire. If we take the case of GM then its exchange program allows the buyers three days or 150 miles to decide whether to keep this CPO car or exchange it for another car.
Mostly CPO cars have the fixed mileage and timing to be certified. But it varies based on the company, some cars are less than six years and 70,000 or fewer miles to become qualified. Many new cars are leased for two to three years now so it’s not that difficult to search for new-low mileage models in the stores.
The main difference lies between used cars and CPO is about the low-risk purchase. It provides various warranties that cover the expensive parts of the car that includes up to 100,000 miles. Each CPO program includes a multipoint inspection of the car by factory-trained technicians. They check all the issues before selling the car.
CPO prefers the car with low mileage, reconditioning, and tough inspection. All these features are not so common so limited numbers of used cars make the CPO segment. Because of high-requirement, the choices could be less for CPO. so if you need a car with CPO then you should adjust your choices.
When you buy a CPO related car then you have to understand the agreement that includes their terms and condition. CPO deals vary as dealers certified cars rarely clears the same inspection every time. So prefer to choose a CPO program instead of dealer certified.
The price of CPO cars is higher compared to non-CPO cars considered by similar dealers. As the CPO car gives you the benefits of insurance, inspection and more on the other hand used cars don’t come with any warranty. So basically you will get satisfaction while buying a CPO car.
CPO agreements include the transfer of remaining CPO coverage to a subsequent owner. If you are taking the place of the next owner then you have to pay the transfer fees of $200. Also, there will be another fee for a new inspection.
These reasons are enough to prove that buying a CPO car will be a great deal compared to a non-CPO car.