The Merits and Demerits of a CPO Vehicle
The cost of a vehicle is a major concern when you are looking to buy your dream car. In recent times, many car manufacturers and dealerships have joined hands to mitigate this factor from your car buying decision. The concept of certified pre-owned or CPO cars has emerged to serve the needs of buyers looking for reliability and cost benefits for buying a car. These vehicles are stringently checked and restored to their factory conditions by the dealerships. It is done under a certification program run by the manufacturer. There are some downsides as well with this option. You should weigh them all properly before making a decision.
The Merits of Buying a CPO vehicle
CPO vehicles are backed by a comprehensive warranty coverage. Dealers provide additional service warranties and add-ons like roadside assistance with these vehicles. Manufacturers usually provide warranty for free repairs applicable for a certain period. It is an extended warranty that comes into effect when the original warranty expires. To make your experience better, this option has many other benefits like:
When you buy a new car, its price takes a hit the moment it is driven off the lot. Over the first two to three years of ownership, this car incurs heavy depreciation up to 20-40% depending on the vehicle and the way you drive it. You can mitigate these costs completely by investing in a certified pre-owned car.
Detailed Multi-Point Inspection
CPO vehicles are tested and checked for mechanical issues and physical damages at the dealership. Before they come to the showroom, they undergo multi-point inspections. These inspections are conducted under the certification programs run by the manufacturers. Mostly, these programs are applicable to vehicles that have covered nearly 50,000 miles in the period of four to six years. But these requirements may differ from company to company. In some cases, it may be extended up to seven to eight years.
Easy to Finance
Certified pre-owned cars can be easily financed by local banks and credit unions. This decision can prove a money saver due to the lower interest rates and lower initial expenses. It can save you a lot of money even if you buy a high-end CPO car. Most importantly, you can fetch a decent price by selling this car at a later date.
The Demerits of Buying a CPO Vehicle
Costlier Than Non-CPO Vehicles
Certified used cars may be a little costlier when compared to non-CPO vehicles. They need to pass through several inspections and repairs. These multiple inspections escalate their cost. Additionally, dealers also have to pay an extra fee to join the certification program run by the respective car manufacturing companies. With these costs, the prices of CPO vehicles become higher.
Vulnerability to Damages
CPO vehicles are stringently checked, yet it is hard to rule out the possibility of mechanical issues in these cars. Therefore, manufacturers and dealers provide certifications to ensure peace of mind to buyers.
When you choose to buy a CPO vehicle, make informed decisions and always lay your trust in a reliable local dealership.