What Are the Advantages of Certified Pre-Owned Cars?

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Is a CPO Car Right for You?

You want a new car but don’t want to take the first year’s steep depreciation hit. You don’t want the risk of buying a used car because you might get a clunker. Fortunately, there’s a way to get the best of both worlds.

Certified used cars are gently used vehicles that are sold by new car dealerships with limited age and miles and generally after a thorough inspection and reconditioning. Most are sold with a manufacturer-backed warranty and other customer benefits.

They’ve already taken the huge amount of depreciation that most cars have during their first year of use, so they’re less expensive than buying a new car.

To be clear, when we talk about certified used cars (also known as certified pre-owned, or CPO), we’re talking about cars that are part of manufacturer-sponsored programs, and not just cars that have a “Certified” sticker slapped across the windshield by an unscrupulous used car dealer with nothing to back up the certification.

On the following slides, we’ll look at the advantages of buying certified pre-owned cars, and one significant disadvantage.

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