license pre - own vehicles are near always advertised as the pick of the crop . In possibility , they ’re the nice , most meticulously maintained , lowest - milage , and strictly inspected used cars on the market . They ’re supposedlysogreat the manufacturer stands behind them , and they even come with an lengthy warrant , right ? That ’s why they ’re so often sold at a agio toll reflecting their pristine condition .
Just one problem : CPO vehicles are a complete and utter myth , and buy one is almostnevera good deal .
Is it potential to find a great deal on a perfectly maintained vehicle that the previous owner treated like a family member ? Absolutely – but heed this word of advice : stay far , far away from CPO vehicles .
Flickr/RL GNZLZ
Certified pre-owned programs are little more than an expensive marketing scheme
There is absolutely no difference of opinion between a CPO vehicle and other exchangeable used cars in today ’s market , except for one affair : the guarantee . Here ’s the kicker , though : you do n’t really ask an extended warrant these days , because most late - exemplar automobile typically do n’t have major mechanically skillful topic . Consumer Reportsrecently performed an all-embracing report where it found that 55 % of owners who had extended warrantee on their vehiclesnever used them at all . They did n’t even apply themonce .
bad still , for the remaining 45 % that did expend them , well overhalfdidn’t get their money ’s worth from the warranty . That meansthe median vendee of a CPO car has a less than one - in - four probability of really come out ahead on the deal . Those are star sign odds the dealerships will take every single time , because the exchange premium you pay for an extended warranty on a CPO vehicle is usually far greater than the benefit you glean .
Most CPO cars aren’t inspected terribly closely
Many certify pre - possess programs swear just the really , really big things , such as a lack of obvious defects and a figure that has n’t been damage in a serious hit . There is , however , a dirty piddling secret to those claims . Thedealer auctions , where most CPO vehicle are buy , already provide this information to all dealer with condition report and post - sale review . When you buy a fomite at a new - car franchise ’s CPO peck , all you ’re really doing is paying a stiff premium for a basic inspection that ’s already uncommitted to all car franchise , whether it ’s CarMax or Bob Smith Auto Sales .
The “certified” part of a CPO car leaves out the most important thing…
… and that ’s the anterior proprietor . A certified pre - owned vehicle offers absolutely no info about how the prior possessor drive and maintain that vehicle .
Zero . Zilch . Nada .
You need to know about the previous owner for reasons that go far beyond how they drive the railcar . Was the oil changed on fourth dimension ? Were the tyre ever replaced ? Is there an expensive fix already done to the fomite that was n’t done exactly right ? Even a formerrental carcan qualify as a certified pre - owned vehicle these days . Without knowing these things , you ’re opening yourself up to fiscal hazard in the conformation of a shiny objective that may become a rolling money pit .
Flickr/Emilio Labrador
The difference between a CPO and non-CPO car? Your willingness to pay.
The brute reality of license pre - owned vehicles is that there is dead no dispute between those used automobile that sold at a new - gondola dealership under a fancy name , and other similar used motorcar uncommitted elsewhere in today ’s marketplace . With a CPO fomite , the manufacturer gets an extra cut of the profits , as does the dealership , the finance company , and other third parties – from the auctions that audit the motorcar , to the self-propelled situation and medium source that launch the advertising . You ’re fundamentally just subsidize a plenty of big party .
Compare the CPO prices to similar cars for sale
What should you do alternatively ? Compare the CPO price to other option ; chances are you ’ll find them to be loud and better . betray both online and locally , and verify the car before you buy it . Most belated - model vehicles grease one’s palms on eBay through independent dealers such asTexas Directare substantially less expensive than the single at competing new - car dealerships . There are also dozens of other online - sharpen competitors such asBeepi , Vroom , Shift , andCarvanathat offer the same late - poser cars for a lot less money . If you require to go even cheesy , take a look at individual Peter Sellers on Craigslist who are n’t simply selling cars for a quick dollar bill . No matter which way you go , always verify the upkeep history , and get the vehicle inspectedby an experienced mechanic .
It does n’t weigh if you ’re looking at a $ 20,000 railcar , $ 10,000 car , or$2,000 railway car : when it come to used vehicles , it ’s always the laziest consumer who devote the most . keep the rubber stamp of guaranty that is a certified pre - owned vehicle and invest in things that weigh more .
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Courtesy of Audi
Flickr/Antrell Williams
Flickr/Ryan Gsell
