The Difference Between Pre-Owned and Certified Pre-Owned Cars

If you’re in the market for a pre-owned vehicle, one of the critical decisions you’ll need to make is whether to buy a certified pre-owned (CPO) vehicle. CPO vehicles may be suitable for you because they come from a select group of vehicles based on stringent criteria and are inspected and repaired before being sold. However, because CPO vehicles tend to be more expensive than non-CPO vehicles, a standard pre-owned vehicle might be a better option.

What Is a Pre-Owned Vehicle?

A pre-owned vehicle is any vehicle that’s not new when sold. Also called “used” vehicles, these have been owned by at least one other person before the current buyer. There’s a vast range in the quality of pre-owned cars, from like-new to significantly damaged, and some have high mileage or are very old. The vehicle’s use history and proper maintenance play large roles in its quality and future longevity.

What Is a CPO Vehicle?

A CPO vehicle is a used vehicle that has gone through a manufacturer-determined process to verify and ensure its quality for resale. Factory CPO cars are only available for sale at the same brand’s dealerships. CPO vehicles would be considered very gently used in the category of used cars. This is because vehicles that have been in accidents, are poorly maintained, or have high mileage are unlikely to pass inspection. Often, CPO vehicles were leased and returned.

How Does a CPO Vehicle Differ From a Standard Pre-Owned Vehicle?

The process of becoming a CPO vehicle is intensive.A CPO vehicle differs from a standard, or traditional, pre-owned vehicle in several fundamental ways.

Only Some Cars, SUVs, or Trucks Can Become CPO Vehicles

First, the vehicle must meet a series of pre-determined, strict criteria to be eligible for the program. Then, the dealership thoroughly inspects the vehicle. A standard pre-owned vehicle may also be inspected, but only sometimes, and not always with the same scrutiny as a CPO vehicle. Finally, the dealership prepares the vehicle for sale.

CPO Vehicles Are Usually More Expensive

Ultimately, this process means that a CPO vehicle is likely to cost more than a non-CPO vehicle. These savings can be significant, depending on your budget. Alternatively, you could put the money you saved by not buying a CPO vehicle and put it toward buying a more expensive used vehicle. CPO vehicles also usually have a better warranty than traditional pre-owned ones. This warranty coverage is through the vehicle’s original manufacturer.

The Selection of Non-CPO Vehicles Is Usually Larger

Because turning a vehicle into a CPO vehicle is expensive and time-consuming, and specific eligibility requirements exist, not all vehicles can become CPO vehicles. This means there’s usually a more extensive selection of standard pre-owned vehicles compared to CPO vehicles. It may be easier to find the car you want if you don’t only look at CPO vehicles.

CPO Vehicles Tend To Have Better Warranty Coverage

CPO vehicles come with a manufacturer-backed warranty. In contrast, a standard pre-owned vehicle may have no warranty at all, some remaining portion of the vehicle’s original warranty, or an extended warranty from the dealer.

Why Should You Consider a CPO Vehicle?

When you buy a CPO vehicle, you get a series of benefits that are similar to those of a new car. However, you can also avoid the steep initial loss in value through depreciation that occurs immediately after you drive a new car off the lot.

Eligibility

Eligibility criteria for a vehicle to become a CPO vehicle is normally strict and must meet certain minimum requirements to start off with, including mileage and vehicle age. For Toyota, CPO vehicles must be no more than six years old and with fewer than 85,000 miles.

Inspection

The dealership inspects vehicles for entry into the CPO program. The vehicle must meet established quality standards, or it won’t become a CPO vehicle. This is different from buying a standard used car. If you buy a non-CPO vehicle, you are often required to pay for an inspection on your own. In the case of a CPO vehicle, if the vehicle has too much damage or significant mechanical problems, it won’t pass the inspection and move on to the next phase.

Preparation for Sale

The dealer will refurbish and, if needed, repair the car. This can include electronic and mechanical repairs, as well as addressing systemic issues. This process is rigorous enough to leave the vehicle in a state where the dealership is sufficiently confident to provide warranty coverage. Because a CPO vehicle goes through an inspection process and undergoes any necessary repairs, you can have confidence that it’s in proper working order when you buy.

Warranty

CPO vehicles also include a manufacturer-backed warranty. Terms differ by manufacturer, but one example is a 12-month or 12,000-mile comprehensive warranty, with an additional powertrain warranty and roadside assistance. Factory warranty programs can allow you to get your CPO vehicle serviced at franchised dealerships. Although your coverage may vary, it will typically be better than what is available for standard pre-owned vehicles. There’s no additional cost for this warranty because the warranty is included in the price, which is different from many non-CPO vehicles.

CPO vehicles may include additional benefits. For example, some vehicles include roadside assistance. You may also be able to finance or lease your CPO vehicle directly through the dealer, which is only sometimes possible when buying a standard pre-owned vehicle.

A CPO vehicle is an excellent option if you want to ensure your peace of mind. You’ll know the vehicle has been held to strict quality standards and inspected and repaired throughout. However, a potentially more extensive selection of non-CPO cars is available, and they tend to be less expensive. If you’re in San Antonio, Texas, and in the market for a pre-owned car, please feel free to contact us here at Red McCombs Toyota. We sell both standard pre-owned vehicles and Toyota Certified Pre-Owned vehicles.