When shopping for a used car, you may notice two main categories: Certified Pre-Owned (CPO) and regular used cars. Both can save you money compared to buying new, but each option has its pros and cons. In this article, we’ll explore the differences between CPO and regular used cars to help you make an informed decision. We’ll cover warranties, inspections, costs, and more to ensure you get the best car for your budget and needs.
1. What is a Certified Pre-Owned (CPO) Car?
Certified Pre-Owned cars are used cars that have passed an inspection process set by the manufacturer or dealership. Only certain models with low mileage and a clean history can qualify. These cars typically come with a manufacturer-backed warranty, roadside assistance, and sometimes even special financing rates. Because of these benefits, CPO cars often cost more than regular used cars, but the added perks may be worth it for many buyers.
According to the article “How to Choose the Best Used Car for First-Time Buyers,” CPO vehicles are a solid choice if you’re looking for a vehicle that feels close to new but at a lower price.
2. What is a Regular Used Car?
A regular used car, on the other hand, does not go through the same rigorous inspection process that CPO cars do. These cars can be bought from various sources, including private sellers, dealerships, or auctions. While regular used cars are generally cheaper than CPO cars, they often come without a warranty or any guarantee of quality. However, if you do your research, you can still find a reliable used car that suits your budget.
3. Key Differences Between CPO and Regular Used Cars
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Inspection and Reconditioning:
CPO cars undergo a detailed inspection, which covers everything from brakes to engine performance. The dealership or manufacturer will often fix any issues before putting the car up for sale. Regular used cars, however, are sold as-is unless the dealership offers its own inspection and warranty package. The thorough CPO inspection is a great benefit if you want extra assurance about the car's condition. -
Warranty and Protection:
One of the biggest benefits of buying a CPO car is the warranty that comes with it. CPO cars usually have extended warranties that cover many major repairs and offer roadside assistance. Regular used cars, especially those from private sellers, typically do not come with a warranty, which means you could be responsible for repair costs from day one. -
Price:
CPO cars tend to cost more than regular used cars because of the extra benefits like warranties and inspections. The premium price might be worth it for peace of mind, but regular used cars can be a better fit for those on a strict budget.
4. Advantages of Buying a CPO Car
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Peace of Mind:
With a CPO car, you get added security knowing that the car has been inspected and comes with a warranty. This is particularly useful if you’re not familiar with car maintenance or repairs. -
Extended Warranty Coverage:
Many CPO programs offer extended warranties, sometimes with better terms than you’d get with a regular used car. For example, some brands offer coverage up to 100,000 miles, allowing you to drive worry-free for longer. -
Better Financing Options:
Some manufacturers offer special financing rates for CPO vehicles. This can make buying a CPO car more affordable in the long run compared to a regular used car with a higher interest rate. -
Lower Depreciation:
Because CPO cars are usually just a few years old, they have already gone through the initial phase of depreciation that new cars face. This means the car’s value will not drop as steeply once you start driving it.
5. Advantages of Buying a Regular Used Car
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Lower Price:
Regular used cars are generally cheaper than CPO cars, which makes them a good option if you’re on a tight budget. By skipping the CPO label, you can often find a better deal on similar models. -
More Variety in the Market:
While CPO programs are only available through specific dealerships, you can buy a regular used car from private sellers, online platforms, and auctions. This wider selection can give you more freedom to negotiate prices. -
Flexibility with Customization:
Regular used cars can be customized more freely, as some CPO agreements might void warranties if you modify the car. With a regular used car, you don’t have these restrictions, which is ideal for buyers looking to make their car unique.
6. Things to Consider When Deciding Between CPO and Regular Used Cars
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Your Budget and Long-Term Goals:
If you want a nearly-new car with low mileage and a warranty but can’t afford a new vehicle, a CPO car could be a good choice. On the other hand, if you’re on a strict budget and comfortable with a car that may need minor repairs, a regular used car might be the best option. -
Where You’re Buying From:
A dealership specializing in CPO vehicles may offer better financing and service packages. However, if you’re looking at a used car from a private seller, make sure to run a Vin Check, Revs Check to ensure it has a clean history and is not subject to any outstanding debts. -
Future Resale Value:
Cars that come with a CPO label may have better resale value due to their certified status. For example, some cars from the list of Top 10 Used Cars with the Best Resale Value retain their worth well, which could be beneficial if you plan to sell the car in a few years.
7. Popular Brands with Reputable CPO Programs
Certain car brands have reputable CPO programs that are well-regarded in the industry. Some popular CPO programs are offered by Toyota, Honda, and Subaru. These brands have stringent inspection processes and typically offer longer warranty terms, making them popular choices for buyers interested in CPO vehicles.
8. The Verdict: CPO or Regular Used?
Both CPO and regular used cars have their own sets of benefits. If you want a car with fewer risks and added protection, a CPO vehicle might be worth the higher cost. For first-time buyers or those looking to save money, a regular used car could offer better value, as long as you do your research and consider factors like mileage and maintenance history.
In conclusion, the best choice depends on your priorities. Whether you choose a CPO or a regular used car, understanding your needs and budget will guide you to a car that fits your lifestyle perfectly.
Next article: How to Verify Mileage on a Used Car Before Purchase