Pull up in the office parking garage or restaurant parking lot in a shiny, recent-vintage Porsche sports car, Mercedes sedan, or Cadillac Escalade SUV, and there’s a chance many observers may snort a bit judgmentally, assuming you have more money than sense.
But when you discover the CPO secret, you actually may be able to drive a luxury vehicle that costs less than the mid-priced cars that your friends, co-workers, and family members drive. Imagine driving a three-year-old, looks-like-new Porsche Macan SUV that cost $10,000 less than what your neighbor paid for a new Hyundai grocery-getter. They will wonder why you have a bemused, Mona Lisa-like smile every time you see their car.
CPO Standards
CPO stands for certified pre-owned. Many people are quick to dismiss even considering a “used car,” saying they don’t want to drive someone else’s worn-out vehicle, but there’s a large distinction between used and CPO.
The “C” for certified means that the vehicle has been thoroughly examined, with any noted repairs performed and parts such as tires and brakes replaced if needed. In addition, CPO vehicles are only sold by dealerships that also sell and service the same brand of new vehicles, and these dealerships are required to comply with stringent manufacturer-imposed rules in order to be allowed to sell them.
Only the best pre-owned or off-lease vehicles qualify to be sold as CPO. In most cases, they are two to three years old, have less than 36,000 miles on the odometer, and haven’t been involved in crashes or experienced other serious damage such as floods.
The CPO vehicles must also undergo a rigorous inspection of between 100 and 300 items and systems, ranging from simple tire tread measurements to complex engine, transmission, and electronic system evaluations, plus sound system checks and evaluations for horn, seatbelt, and mirror operation. If a vehicle doesn’t pass all the tests, it must be sold as-is, with no warranty.
Trouble-Free Benefits
The most appealing aspect of purchasing a CPO vehicle is the price, which can be at least 30 percent less than the cost of a brand-new, similarly equipped vehicle, and it’s often accompanied by very favorable loan terms.Another large charm is knowing that an experienced technician armed with cutting-edge electronic diagnostic equipment has evaluated virtually every inch and part of the vehicle. There’s no better way to avoid a “lemon” than to let someone else drive a vehicle in real-life conditions for a few thousand miles. Quite often, if serious or even minor problems are present, they will make themselves known in the first few months of use. By identifying and correcting any issues, a CPO vehicle may be more trouble-free than it was when it first rolled off the lot.
For more peace of mind, most CPO vehicles are backed by a comprehensive paint-to-tires, bumper-to-bumper warranty with similar coverage to that offered for new vehicles. In cases where the original factory warranty period is still in effect, some CPO vehicles are sold with a one-year extension of that coverage. In that way alone, choosing a CPO vehicle over a private seller’s similarly equipped vehicle with the same price, mileage, model, and age could well be the better decision.
Many savvy consumers enjoy the ability to own a late-model car or SUV while avoiding the depreciation that affects most vehicles the moment they drive off the dealership lot. Unlike a used-car dealer that may offer to make any needed post-sale repairs only at their facility, CPO warranties are recognized by all dealers of the vehicle manufacturer, meaning that an owner who buys a CPO vehicle in Utah can have it repaired under warranty in Ohio, Florida, or any other same-brand franchised dealerships in the United States.
While it’s possible that a consumer could find a very similar vehicle offered for sale by an individual or auto retailer at a lower price than that charged for a CPO model, the lower price comes with more ownership risks to the purchaser.
In all cases, a very careful road test and physical inspection of the vehicle and as many of its components that can be practically accessed—such as tires, wiper blades, and interior, plus a thorough review of any warranty and related expirations, exceptions, deductibles, and roadside assistance coverage—are strongly recommended prior to finalizing the deal.
The appeal of purchasing a vehicle that’s very similar to a new model for a significantly lower price is another big plus of the CPO program. Auto manufacturers tend to produce cars that look very much alike for several years before instituting major design changes, allowing the buyer of a CPO vehicle to drive a car or SUV that many would assume is brand-new.
For these reasons, many knowledgeable consumers are able to enjoy a luxury car at an attainable price.
