The benefits of Certified Pre-Owned
Posted on Wednesday, February 15, 2012 at 9:19:05 AM
Consumers seeking to purchase a used car with pre-approved auto financing may want to consider Certified Pre-Owned vehicles (CPO). These cars are considered top-quality, inspected by professionals and backed with a manufacturer's warranty, according to Kelley Blue Book.
Most CPO programs only include vehicles that are under five years old, have less than 100,000 miles and have had no major repair or bodywork. In exchange for the higher price, a consumer gets the piece of mind that the vehicle has under gone a multi-step inspection and has an extended warranty.
A CPO vehicle has to be in great shape for the manufacturer's to take such a risk and insure it.
"The only way [car companies] can offer CPO is because they're making money on the aggregate of the warranties. If they weren't, the business model wouldn't make any sense," Anderson, a senior analyst at IntelliChoice, told PopularMechanics.com.
Auto financing a CPO vehicle may benefit a consumer seeking to buy a high-quality vehicle. These programs are traditionally offered for luxury brands. However, the increase in auto quality and sophistication has led non-luxury manufacturer's to sometimes offer CPO programs.