Is a Certified-Pre-Owned Car Right For You?
Choosing to buy a new car or a used car can be a daunting decision. If you're in the market for a new car, you may be considering a certified-preowned (CPO) car, as they are more affordable than new cars but they still come with many of the same benefits.
Here are some pros and cons to consider before making your purchase:
Pros
- More affordable than a new car
- Due to depreciation, a slightly older car loses value fast, so a CPO can cost significantly less than buying a brand- new model
- Risk Mitigation
- Warranty coverage is directly from the manufacturer, versus from third party that you may not trust
- They often have low mileage
- Since most CPO cars must be within a certain mileage to be certified, it’s easy to find like- new, low- mileage versions of a vehicle you like in the market
- Have been inspected and reconditioned by the dealership
- In order to get certified, the car must be thoroughly inspected. You can ask for copies of the signed inspections, the warranty, and the vehicle history to address any issues before purchasing
- Special interest rates are likely offered depending on things like your credit score
Cons
- Higher price than a used car
- Although it is more affordable than a new car, the certification and peace of mind that comes with a CPO car can be up to 17% more expensive than a used car.
- Your choices may be limited
- Because of the certification process, there is a limited number of CPO vehicles that make the cut. If you’re set on a particular colour, model, or technology, you may be disappointed by the current options in the market
- Wear and Tear
- It’s still a used vehicle, which likely shows in things like the tires or paint
- CPO’s can vary greatly
- As there is no such thing as a standard CPO, the mileage, the deals, and the warranty can all vary depending on the agreement. Don’t be afraid to ask the dealer questions about the terms and conditions
Ultimately, the decision of whether to buy a CPO car depends on your needs and preferences. If you're looking for a reliable and affordable car, a CPO car may be a great option. However, if you're looking for the newest model with all the bells and whistles, you may want to stick with a new car. Regardless, stay vigilant of the agreement and ask your car dealer all the questions you need to feel confident with your purchase!
