A brand-new car can be a hefty outlay — and it’s hard to justify when you realize it drops almost 10% of its worth the moment you drive it off the dealer lot.
On the other hand, purchasing a used car doesn’t always provide reassurance, since its complete background may be unclear, leaving its future reliability in doubt.
Sitting neatly between new and used cars, like Goldilocks’ perfectly tempered porridge, is the category known as certified pre-owned. For about 2.6 million drivers in 2016, a CPO vehicle was just right.
So What Exactly Is CPO?
CPO cars are essentially used vehicles that have been through thorough inspections and are backed by warranties. They also meet specific age and mileage standards. They provide many of the benefits associated with new cars but at a lower cost, though not as inexpensive as the typical used vehicle.
Generally, CPO cars show less wear than other used cars, haven’t been involved in major accidents and have had any significant problems addressed. If these conditions aren’t met, the car cannot be listed as certified pre-owned.
Because of the strict standards for CPO designation, many certified cars are lease returns or trade-ins from owners who don’t keep vehicles for long periods, according to Edmunds.
For buyers who want to avoid the steep depreciation of a new car but desire more assurance than a normal used car offers, CPO is often the best compromise.
A CPO Word of Caution
Edmunds warns that some dealerships have been known to label vehicles as “certified” to draw in shoppers even when they aren’t genuine CPOs. There’s a distinction between a manufacturer-run CPO program and one created by an individual dealership — seek out cars enrolled in the former.
To ensure this, only shop for certified vehicles from a dealership that specializes in that brand. For instance, look for certified pre-owned Hondas at a Honda dealership.
Also, search for a badge or sticker indicating the vehicle is part of the manufacturer’s CPO program.
The Industry’s Top CPO Programs
Not every CPO program offers the same value. Publications like U.S. News & World Report and Edmunds have evaluated automakers’ CPO offerings and selected favorites based on included perks. Here’s a look at what some of the highest-rated CPO programs provide.
Lexus CPO
Both U.S. News and Edmunds rank Lexus among the top CPO programs — U.S. News even names Lexus the best. Lexus markets its certified models as “L/Certified,” but functionally this aligns with a standard CPO program.
To qualify, a used Lexus must clear a 161-point inspection by a certified technician. L/Certified vehicles offer:
- An unlimited-mile warranty that, when paired with the basic new-vehicle warranty, can provide six years of coverage
- Two years or 20,000 miles of complimentary maintenance
- Roadside assistance through a convenient app
- Trip interruption protection — if your Lexus breaks down while traveling, lodging costs up to $200 per night and rental car reimbursement of $50 per day for up to five days are covered
- A free loaner vehicle when warranty repairs take longer than eight hours
Hyundai CPO
While Lexus scores highly, it’s a luxury marque that’s pricier for many buyers. A strong, budget-friendly alternative is Hyundai, which earns top marks from Edmunds.
To be eligible, used Hyundais must be less than five model years old, have under 60,000 miles and pass a 150-point inspection by a certified technician. Hyundai estimates that CPO benefits add about $2,066 in value. The advantages of Hyundai Certified Pre-Owned models include:
- The remainder of the five-year/60,000-mile warranty — for example, Hyundai will cover a 2-year-old car with 20,000 miles for an additional three years or 40,000 miles
- A 10-year/100,000-mile powertrain warranty
- A Carfax vehicle history report
- Rental car reimbursement up to $35 per day for a maximum of 10 days
- Roadside assistance for 10 years with unlimited miles
- Travel interruption reimbursement up to $100 per day and $500 per occurrence if stranded 150 miles or more from home
- A 90-day trial subscription to SiriusXM satellite radio
Honda CPO
Honda also appears on both lists of the best CPO programs. To qualify, used Hondas must be under six years old, have fewer than 80,000 miles and pass a 182-point inspection by a certified technician. The benefits of Honda CPO include:
- A 12-month/12,000-mile limited warranty
- A 7-year/100,000-mile powertrain warranty
- Honda Care, which offers 24-hour roadside assistance, broad component coverage and concierge emergency services
- A three-month trial of SiriusXM satellite radio
Chevrolet/Buick/GMC CPO
Although GM’s sister brands GMC and Buick also receive high marks, Chevrolet is typically the most affordable option within the General Motors lineup, making its CPO offering appealing to cost-conscious buyers like Savinly readers.
The following CPO perks apply across all three GM brands.
To qualify, GM vehicles must be no more than five model years old, have under 75,000 miles and pass a 172-point inspection and reconditioning routine. GM states that CPO benefits can add roughly $2,800 in value. GM CPO benefits include:
- A 12-month/12,000-mile bumper-to-bumper limited warranty
- A six-year/100,000-mile powertrain warranty
- A three-day/150-mile vehicle exchange program
- Two complimentary maintenance visits during the first two years or 24,000 miles
- 24/7 roadside assistance and courtesy transportation
- A Carfax vehicle history report
- Three-month trials of SiriusXM “All-Access” and OnStar services
Are CPO cars identical to brand-new vehicles? Not at all. Do they provide more assurance than a typical used car? Absolutely.
At minimum, certified pre-owned vehicles are wise options for Savinly readers who want financially sensible choices within their budgets that won’t demand constant investment to maintain.
Jordan Hayes, a Nashville-based editor and contributor, has covered the automotive beat for several years. He currently drives a Hyper Blue 2017 Subaru Crosstrek and wouldn’t trade it for anything — though a Tesla might change his mind.
