What are the Benefits and Problems of Buying a CPO?
When buying a car, costs play a major role. There are many options to serve the diverse needs of buyers. You can buy a pre-owned car offered with comprehensive warranties and quality assurance from the manufacturer. These are certified pre-owned or CPO vehicles. They are reconditioned and repaired to restore their performance. A decision to buy CPO brings along a lot of benefits. But, it also entails some disadvantages. Here are the pros and cons discussed in detail:
Why Choose a CPO?
As mentioned above, certified pre-owned vehicles are offered with comprehensive warranties. Dealerships selling these cars provide roadside assistance, car rental reimbursement, towing benefits and extended protection plans. Furthermore, they are covered by a manufacturer’s warranty that assures free repairs up to a certain period. Some dealerships offer a three-year buyback guarantee with the vehicle. Other benefits of this option are:
CPO vehicles pass through a series of inspections and repairs before being offered for sale. They are covered under certification programs run by manufacturers. These programs depend on the age of a vehicle and the miles covered by it. Typically, they are applicable to the cars that have run for 50,000 to 80,000 miles with an age of four to six years. Some manufacturers may extend these limits depending on their certification programs. If a mechanical issue or major failure is found during the multi-level inspections, vehicles are repaired immediately by dealers under the specifications of the manufacturer.
Ease of Obtaining Finance
A certified pre-owned vehicle is easy to buy due to the availability of finance options offered by local banks and credit unions. You can save a lot with this option. If you plan to sell this vehicle in the future, you can avail a decent price.
When you buy a new vehicle, its value is depreciated immediately after you drive it off the lot. This cost of depreciation increases with each year of ownership. You may lose up to 40% value of your vehicle in the first few years itself. However, you can save all these costs by investing in a certified used car.
Drawbacks of Buying a CPO:
It is an excellent option for those who need cost-effective solutions along with reliability. However, there can be some downsides to choosing CPO vehicles. Here they are:
Cost May Be High
Non-CPO vehicles may be offered at a lower price when compared to CPO vehicles. However, the latter comes with quality assurance from the dealer and manufacturer. They are costlier due to multiple inspections that they undergo to ensure credible performance. Sometimes, these costs may be high due to the size, make and model of the vehicle. Dealerships try to compensate it by offering special discounts and financing benefits to buyers.
It is Still a Used Vehicle
Despite all the benefits similar to a new car, a CPO remains a secondhand automobile. You may not enjoy the feeling of driving home a vehicle that is not brand-new. However, it serves as a performance packed vehicle available at affordable pricing.
You should always make a wise decision after doing extensive research on the pros and cons of CPO.