CARS.COM — At most new-car dealerships you will encounter certified pre-owned vehicles, which have become big business. They are a popular choice for consumers because CPO cars offer more of what many buyers crave in a used vehicle: peace of mind.
The term "certified" means that a dealer has certified to the manufacturer that the car passed a multipoint inspection that can encompass 150 or more items and has been repaired as needed to qualify for the CPO program. Dealers are supposed to file paperwork with the manufacturer to support this and pay a fee to obtain CPO status for the vehicle.
Every major manufacturer offers CPO vehicles, and recent estimates show that more than 20 percent of the used cars sold by new-car dealers are CPO vehicles, accounting for more than 2.5 million vehicles in 2015. Some dealer groups, and even individual dealers, offer their own certification programs, but they are different from the CPO programs backed by vehicle manufacturers.
CPO vehicles usually are priced higher than non-CPO used cars (that difference can be from several hundred dollars to a couple of thousand) because they are touted as the best used cars available. They are supposed to have been reconditioned to like-new condition, they're backed by a manufacturer's warranty and they come with additional benefits that may not be provided on other used cars.
In other words, CPO vehicles offer most of what you would get with a new car — including that new-car smell — but at a lower price.
Age and mileage limits to becoming a CPO vehicle vary by manufacturer[, but the vehicles are usually less than 6 years old and have fewer than 80,000 miles. In addition, the CPO programs extend the manufacturer's original basic or powertrain warranties (or both) and often include roadside assistance and a free vehicle history report.
Moreover, CPO vehicles often are available with low-interest financing from the manufacturer that is lower than what many consumers would be able to get on other used cars.
CPO programs started with luxury brands such as Mercedes and Lexus, but with all major manufacturers now involved, the most popular programs belong to the top-selling brands: Toyota, Honda, Chevrolet and Ford.
from Cars.com News http://ift.tt/1Q2bG1W
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