Get More Bang for Your Buck: The Benefits of Buying Certified Pre-Owned
April 24, 2023
6 min read
Buying a used car can be risky, as there is no guarantee of its condition or history.
Get More Bang for Your Buck: The Benefits of Buying Certified Pre-Owned
Certified pre-owned (CPO) cars are the antidote to this fear. These vehicles undergo a rigorous inspection process and come with a manufacturer-backed warranty, ensuring you get a reliable and well-maintained car.
Plus, you'll save money compared to buying a brand-new vehicle. With a CPO car, you can breathe easily, knowing you're making a smart investment in a high-quality car.
Lower Cost of a Certified Pre-Owned Car
Certified Pre-owned Cars Are More Affordable
Certified pre-owned cars are more affordable than new cars because they have already undergone initial depreciation. Buying a certified used car gives you the confidence that the car has been inspected and repaired if needed and comes with a warranty, making it a safer and smarter purchase.
When driven off the dealership lot, the initial depreciation hit that new cars take is avoided, resulting in a lower cost for the same make and model.
Price Comparison Between New and Certified Pre-owned Cars
The price difference between a new car and a certified pre-owned car can be significant. In some cases, a certified pre-owned car can cost up to 30% less than a new car of the same make and model.
New cars lose significant value when driven off the lot, while certified pre-owned cars have already undergone this initial depreciation. Additionally, certified pre-owned cars come with extended warranties and other benefits not typically included with new cars, further adding to the value proposition.
How Depreciation Affects the Cost of a Car
Depreciation is the decrease in value that a car experiences over time. When a new car is driven off the dealership lot, it depreciates, which can be significant in the first few years of ownership. For example, a new car can lose up to 20% of its value in the first year alone.
By the third year of ownership, the car's value can have decreased by up to 50%. Buying a certified pre-owned car avoids this initial depreciation hit and can save thousands of dollars.
Examples of the Price Difference Between a New Car and a Certified Pre-owned Car
The price difference between a new car and a certified pre-owned car can be substantial. For example, a new 2021 Toyota Camry SE sedan has a starting price of $26,485, while a certified pre-owned 2020 Toyota Camry SE sedan can be purchased for around $23,000.
This is a savings of approximately $3,485. Similarly, a new 2021 BMW 3 Series sedan has a starting price of $41,250, while you can purchase a certified pre-owned 2019 BMW 3 Series sedan for around $31,000. This is a savings of approximately $10,250. These examples demonstrate that buying a certified pre-owned car can result in significant savings compared to buying a new car.
Certified Pre-Owned Car Quality Assurance
Certified Pre-owned Cars Are Thoroughly Inspected
Certified pre-owned cars are popular for buyers who want a reliable vehicle without paying for a brand-new car. One of the key benefits of buying a certified pre-owned car is the rigorous inspection process that each vehicle undergoes.
This inspection ensures that the car meets the manufacturer or dealer's specific standards. It can give buyers the peace of mind of knowing they are purchasing a reliable vehicle.
The Types of Inspections a Certified Pre-owned Car Undergoes
The types of inspections a certified pre-owned car undergoes can vary depending on the dealership or manufacturer. Typically, inspections include:
A comprehensive multi-point inspection,
A thorough examination of the vehicle's history report,
A check of the vehicle's title status, and
A road test.
Some dealerships may also require additional inspections, such as checking the vehicle's emissions or reviewing any outstanding recalls.
Examples of How Inspections Have Caught Potential Problems
Inspections have caught potential problems in certified pre-owned cars and prevented buyers from purchasing a vehicle with hidden issues. For example, during a multi-point inspection, a technician may find topics with the brakes, tires, or suspension that would not have been visible during a basic visual inspection.
In addition, a thorough review of the vehicle's history report may uncover previous accidents or flood damage that the seller may not have disclosed. By catching these issues early on, buyers can avoid costly repairs down the road and enjoy a safer and more reliable driving experience.
Certified Pre-Owned Car Extended Warranty
Warranties That Come With Certified Pre-owned Cars
Certified pre-owned cars are pre-owned vehicles that have gone through a thorough inspection and refurbishing process by the manufacturer or dealer. These cars often come with an extended warranty covering major components and parts for a certain period or mileage, providing buyers peace of mind.
The extended warranty for certified pre-owned cars typically covers the engine, transmission, drivetrain, suspension, steering, and electrical components. In addition, some contracts may offer roadside assistance, trip interruption coverage, and rental car reimbursement.
A certified pre-owned car with an extended warranty can protect buyers against unexpected repairs and maintenance costs. This can benefit buyers who want a reliable vehicle without paying for a brand-new car.
Comparing Warranties for New and Certified Pre-owned Cars
Warranties for new and certified pre-owned cars differ in coverage, duration, and cost. New cars usually come with a manufacturer warranty that covers the vehicle for three to five years or a certain number of miles, whichever comes first. This warranty covers materials and workmanship defects and may include roadside assistance and other benefits.
Certified pre-owned cars may have an extended warranty covering major components and parts for a certain period or mileage. This warranty is typically offered by the manufacturer or dealer and may vary in duration and coverage from one car to another.
While the warranty for a new car provides comprehensive coverage for a more extended period, it is also more expensive. The contract for a certified pre-owned car may provide less coverage, but it is often more affordable and can offer similar benefits as a new car warranty.
How Warranties Protect Certified Pre-Owned Car Buyers
Certified Pre-Owned (CPO) car extended warranties provide peace of mind to buyers by protecting them from unexpected repair costs. CPO cars are used cars inspected and refurbished by the manufacturer or authorized dealer, ensuring they meet specific quality standards.
In addition, the extended warranty offers coverage beyond the manufacturer's original warranty, which typically expires after a certain mileage or period. This coverage may include repairs or replacement of certain parts, including the engine, transmission, and electrical system. By offering extended warranty coverage, car manufacturers and dealerships assure buyers that they are purchasing a reliable vehicle.
Examples of How Warranties Have Helped Car Buyers
Certified Pre-Owned Car Extended Warranties have benefited car buyers in several ways. Here are a few examples:
Peace of Mind: Buying a pre-owned car can be daunting, as one needs to be sure of its previous condition. With a Certified Pre-Owned Car Extended Warranty, buyers can have peace of mind knowing that the car has been thoroughly inspected and is covered against unexpected repairs.
Cost Savings: Car repairs can be expensive, and unexpected repairs can be even more financially challenging. With an extended warranty, car buyers can save money by avoiding costly repairs and ensuring they are covered for any necessary repairs.
Higher Resale Value: A Certified Pre-Owned Car with an extended warranty can have a higher resale value than a non-warrantied car, as potential buyers are more likely to trust a car with a warranty, knowing that it has been inspected and covered against unforeseen repairs.
Better Maintenance: Extended warranties often come with maintenance programs, encouraging car owners to keep their cars in good condition and prevent costly repairs.
Overall, extended warranties can provide peace of mind, cost savings, higher resale value, and better maintenance for car buyers.
