Certified Pre-Owned
Encyclopedia
A Certified Pre-Owned or CPO, car is a type of used car.
Most often late-model, they differ from run of the mill used cars by having been inspected, refurbished, and certified by a manufacturer or other certifying authority. They also typically include an extended warranty
, special financing, and additional benefits. Luxury
marques Lexus
and Mercedes-Benz
were among the first to create CPO programs in the 1990s. There are variations as to what is termed certified pre-owned, so it's important to note the distinctions. Manufacturer (or "factory") CPO vehicles are only sold at authorized dealers specializing in that particular franchise. Factory CPO cars are generally five years old or newer and have less than 80,000 miles. They often cost more than vehicles certified by independent authorities, and are higher priced than a non-certified used vehicle. Independent programs can represent good value and an alternative to an OEM program. Independents may hold a vehicle to a higher standard than an OEM, or may be less stringent in their inspections. Independents include brands such as the National Vehicle Certification Program (or "NVCP"), Carmark, and others. Dealer-certified programs represent a third category, as they are often promoted as Certified Pre-Owned. These vehicles generally have not been inspected by anyone outside the dealership, but do typically carry a warranty or extended service contract to provide some protection to the consumer.
With any certified pre-owned program, it is important to note who does the actual inspection and reconditioning repairs, if any. Both OEM and dealer-certified program vehicles are typically inspected by employees of the selling dealer- not by the manufacturer as may be assumed. Independents may employ a disinterested third-party inspector to ensure objectivity, or may allow the dealer to inspect their own vehicles.
Because warranties, vehicle inspection points, and other program components will vary, prospective buyers would be wise to decide what defines CPO for themselves, by comparing the programs to determine what best represents their needs and expectations.
Most often late-model, they differ from run of the mill used cars by having been inspected, refurbished, and certified by a manufacturer or other certifying authority. They also typically include an extended warranty
Extended warranty
An extended warranty, sometimes called a service agreement, a service contract, or a maintenance agreement, is a prolonged warranty offered to consumers. The extended warranty may be offered by the warranty administrator, the retailer or the manufacturer. Extended warranties cost extra and for a...
, special financing, and additional benefits. Luxury
Luxury vehicles
Luxury vehicle is a marketing term for a vehicle that provides luxury — pleasant or desirable features beyond strict necessity—at increased expense ....
marques Lexus
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...
and Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
were among the first to create CPO programs in the 1990s. There are variations as to what is termed certified pre-owned, so it's important to note the distinctions. Manufacturer (or "factory") CPO vehicles are only sold at authorized dealers specializing in that particular franchise. Factory CPO cars are generally five years old or newer and have less than 80,000 miles. They often cost more than vehicles certified by independent authorities, and are higher priced than a non-certified used vehicle. Independent programs can represent good value and an alternative to an OEM program. Independents may hold a vehicle to a higher standard than an OEM, or may be less stringent in their inspections. Independents include brands such as the National Vehicle Certification Program (or "NVCP"), Carmark, and others. Dealer-certified programs represent a third category, as they are often promoted as Certified Pre-Owned. These vehicles generally have not been inspected by anyone outside the dealership, but do typically carry a warranty or extended service contract to provide some protection to the consumer.
With any certified pre-owned program, it is important to note who does the actual inspection and reconditioning repairs, if any. Both OEM and dealer-certified program vehicles are typically inspected by employees of the selling dealer- not by the manufacturer as may be assumed. Independents may employ a disinterested third-party inspector to ensure objectivity, or may allow the dealer to inspect their own vehicles.
Because warranties, vehicle inspection points, and other program components will vary, prospective buyers would be wise to decide what defines CPO for themselves, by comparing the programs to determine what best represents their needs and expectations.
External links
- What Else Should I Know Before Buying Certified? - Pre-purchase advice, CPO Program Comparison Checklist
- Article on Certified Pre-Owned vs. Extended Service Contract at edmunds.com - May have some further detail on this subject.
- How Much Does Certification Cost? - Overview of CPO value, premiums.
- Certified Used Vehicle Programs @ edmunds.com - Provides short but concise definition, with links to various program details.