Is CPO right for you?
So you're all ready to buy another car. You've done your research and you know the make and model you want to take home. Perhaps you've decided to buy a new car right from the dealership. Or maybe you've been scouring the used car lots and classified sections to find a previously-owned vehicle. But if you haven't done so already, it might be in your best interest to look into buying a certified pre-owned (CPO) vehicle. If you don't, you might just be missing out on one incredible deal.
Sure, a CPO vehicle might not be for everyone. They cost a little more than an equivalent used car, but come with a manufacturer's warranty and no surprises under the hood. And you probably won't get to enjoy the thrill of owning this year's latest model, but that only lasts for a year anyhow. You'll most likely own your car much longer than that.
But if you're looking for an effective way to save considerable money and still get the car of your dreams, you owe it to yourself to check out a CPO vehicle. Still not sure if this is the right path for you? Before you buy a new or used car, consider the following advantages to owning a CPO vehicle.
New Car Condition at a Used Car Price
You assume a certain amount of risk when you buy a used car. You don't know who has driven it before you or how the car was treated. Hopefully, the seller will tell you what needs to be done before you drive away, but this isn't always the case.
When you buy a certified pre-owned vehicle, you are getting a reasonably new car with low mileage. Qualified technicians have placed it through an elaborate series of manufacturer-specified service checks, so all of the kinks have been ironed out before you buy. The car may have a few more miles on it than the new ones on the lot, but you would never tell by looking at it.
More Car for Your Money
Say you want to spend $25,000 on your next car. You can spend it all on this year's new base model. Or you can put it towards a CPO vehicle that might have a few more miles on it, but comes with a ton of features and amenities that you really want but otherwise couldn't afford.
Minimize the Effects of Depreciation
Thanks to depreciation, as soon as you drive a new car off the lot, it automatically loses upwards of thousands of dollars in value. The longer you drive the car and put miles on it, the more depreciation takes its toll. But when you buy a CPO vehicle, it's as if somebody else has already paid those initial depreciation costs for you. The car is still in excellent condition, it just cost you a whole lot less.
Backed by a Manufacturer's Warranty
When was the last time you bought a used car and got a comprehensive manufacturer's warranty? Probably never. But when you buy a CPO vehicle, not only do you get a previously-owned vehicle in excellent condition, but it's also backed by an unrivaled limited manufacturer's warranty. So you get to enjoy the peace of mind that comes with knowing your investment is fully covered. And if anything were to happen to the car while it's under warranty, you wouldn't have to argue with a dealership or hunt down the number of the guy who sold it to you.
Lower Service Bills
A certified pre-owned vehicle comes to you in excellent condition. The manufacturer and dealership have taken a minimum of over 100 steps to make sure that this is the case. And while it may appear to cost more than finding an equivalent used car in the classifieds, it probably either balances out-or costs less-in the end.
That's because a used car will most likely require you to plunk down some serious cash while you get it up to a desirable condition. And even then, you can't be certain that more surprises aren't awaiting you at any given moment. But any such problems in a CPO vehicle have already been resolved, so you save money in the long run. Plus, you also get a manufacturer's warranty that would significantly boost the price of any used car.
All the Perks of Buying New
In an effort to draw attention to their fleet of CPO vehicles, many dealerships are offering incentives traditionally reserved for new car buyers. Among the most appealing are new car financing rates that can save you thousands of dollars over the life of the vehicle. Other incentives include service loan cars, shuttle services, roadside assistance, and free maintenance. Imagine getting a previously-owned vehicle, but enjoying all the perks of buying a new car. Each dealership is different, however, so be sure to ask what is included with the price.