Normally, car shoppers tend to choose between new and used cars, which is literally a choice between the luxury of new and the affordability of used. From shoppers’ perspective, A certified pre-owned (CPO) car is what brings the two together.
In the automotive world, the term ‘certified pre-owned’ basically means ‘refurbished’ and everything else that comes along under this term. A car gets CPO-titled when it is returned to the manufacturer, repaired if necessary, and then tested and certified. So, other than being pre-owned, the car is re-marketed in excellent, virtually new condition.
CPO lets you enjoy a like-new vehicle without paying the price of a brand new car. But before you rush to a dealership looking for a CPO car, here are a few things you need to understand about how CPO vehicles:
A used car can be certified by either a dealership their own in-store standards or by the manufacturer. In the latter case, vehicles meet the specific requirements issued by the manufacturer under their CPO program that ensures all CPO vehicles meet the specified criteria at every dealership in Canada.
Not every pre-owned vehicle is qualified for CPO. When a dealer receives a used car, they put it through an inspection by a manufacturer-certified mechanic. If the factory-set standards are met, the vehicle can be refurbished to re-enter the market as a CPO vehicle.
Car makers set their own requirements that vary from one manufacturer to another. While some criteria (like CARFAX report and no-accident history) are common to most manufacturers, car makers exercise their own qualification processes, like in the following examples:
Toyota. Every car must undergo a 160-point quality assurance inspection to qualify for a Toyota Certified Used Vehicle (TCUV) certification.
Honda. A Honda CUV certificate can be issued for a car that passes a 100-point inspection by a Honda-trained technician.
Hyundai. Hyundai has a 120-point inspection protocol under their H-Promise program.
The attractiveness of buying a CPO vehicle is typically constituted of the following bonuses:
Better resale value. The resale value of a CPO vehicle will sustain longer than a non-certified used vehicle. You can benefit from it if you plan to trade in the car in the future.
Extended warranty. Manufacturers often throw additional warranty on top of the original factory warranty.
Exchange period. You get to drive your new vehicle for a short period to ensure you want to keep it. If you’re not happy with it, you can exchange it for another car.
Roadside assistance. This is what you normally get with a brand new vehicle, but CPO lets you have this bonus on a used car.
Lower financing rates. Compared to what banks can offer, the rates are often lower with a CPO purchase.
Extra benefits. Car makers can throw in some additional perks like free oil and filter change, subscriptions, and access to various media sources.
The downside of buying a CPO car is that you will be paying more than what you would have to pay for just a regular used vehicle. With CPO, you pay for the reputability of the manufacturer and all the benefits of the program. A non-certified used car may be just as good from the driving perspective but more affordable for tight budgets.
If this is your case, CarEvo can help you find a used car right for your needs and budget. Start with filling our online application to get connected with thousands of used vehicles to choose from.