Why Are Certified Pre-Owned Cars More Expensive?

Are CPO Cars Worth It?

Automakers sell millions of new cars every year, but those vehicles lose value, or depreciate, over the first few years of ownership. One way to save money on your next ride is to avoid that depreciation by simply not being the first owner.

Critics of buying a used vehicle will tell you that you’re inheriting someone else’s problems, you don’t get a warranty, and you don’t get a good deal. However, a certified pre-owned (CPO) car offers many of the same benefits of a new car – and then some.

What Are the Requirements for a CPO Car?

Any dealer can slap a sticker on a vehicle that says “certified.” Many big-name dealers use this label – think CarMax Certified and Carvana Certified vehicles – but many small-town used car dealerships also offer certification. While these programs offer some noteworthy benefits, that’s not what this article is about. 

By “certified pre-owned,” we’re talking about a vehicle that is backed by the model’s manufacturer. For example, a used Ford F-150 that is certified by Ford can only be sold at a Ford dealership.

For CPO vehicles to be certified by an automaker, they must be less than five or six years old and have fewer than 60,000 to 80,000 miles on them. Additionally, these cars go through stringent multipoint inspections – to check for mechanical, safety, and cosmetic issues – at the dealership before they become certified.

Do CPO Cars Come With Perks?

There’s more to a CPO car than just age, mileage, and a multipoint inspection. Most of them come with extra benefits. The best programs feature long warranties, a free Carfax vehicle history report, and roadside assistance. Some even come with complimentary scheduled maintenance and a loaner or rental car reimbursement program, giving you something to drive while your car gets worked on for free. 

These perks often cover a set period of time and vary based on the manufacturer, so you’ll want to check with each brand you’re considering.

Will I Have Problems With a CPO Car?

These CPO benefits are designed to give you peace of mind when it comes to mechanical problems – or a previous owner's negligence of periodic maintenance. A vehicle won’t become certified if it is too old, has too many miles, or is riddled with mechanical and cosmetic issues. 

That doesn’t mean that it won’t ever break down. There is no guarantee that a car will not have problems. Even new cars can have unexpected issues that require dealer service or recalls. That’s why new cars come with warranties. A major benefit of buying a CPO car is that they come with warranties of their own.

What Kind of Warranty Comes With a CPO Car?

You may think a new car warranty is great, but you may be surprised to know that some CPO warranties last even longer. Take Lexus, for instance, which offers a four-year/50,000-mile basic warranty on new cars. For CPO models, Lexus extends that warranty by two years and takes away the mileage cap. A CPO Lexus must be less than six years old with a maximum of 70,000 miles. In theory, you could buy a nearly 6-year-old Lexus with 70,000 miles and still have a warranty for two years with no mileage cap.

You don’t have to buy a luxury car to get a good CPO warranty. Kia is a great example. CPO Kia models come with the remainder of the vehicle’s 10-year/100,000-mile powertrain warranty, counted from the original date of sale when the car was new, plus additional comprehensive coverage for a 1-year/12,000-mile term, starting on the date of the CPO purchase. That’s the best CPO warranty in the industry, and if you buy a CPO Kia and then decide to sell it, you’ll have the advantage of passing along any remaining warranty coverage to the next owner for a small fee. 

Not all CPO programs are created equal. Explore our list of the Best CPO Programs.

Are CPO Cars More Expensive?

The added perks and peace of mind that come with a CPO vehicle don’t come free of charge. That’s because it costs dealerships money to perform the multipoint inspections, maintenance, and any necessary repairs. Additionally, the automakers have costs associated with perks like free maintenance and a loaner car program. For those reasons, certified vehicles usually cost more than uncertified used cars.

Can I Get a Deal on a CPO Car?

Yes, you can certainly get a deal on a CPO vehicle. In fact, some automakers offer low- or no-interest financing on their CPO models on a regular basis. With some manufacturers, these deals apply to their entire CPO lineup, but other brands offer them only on select vehicles. 

To find out the best CPO deals available this month, head over to our used car deals page.

Is the Price of a CPO Car Negotiable?

Just because a car is certified, that doesn’t mean its price is set in stone. Like with any vehicle, the purchase price is negotiable. Search listings of CPO vehicles in your area to find the car you want with the features you need.

A great way to lower the price is by taking advantage of the U.S. News Best Price Program. We help you lock in pre-negotiated prices at dealerships in your area. Shoppers who use this program save more than $3,000 on average.

Are CPO Cars Better Than Uncertified Used Cars?

Although you’ll likely save money purchasing an uncertified used car over a CPO vehicle, there is more risk involved. Used car dealerships may provide a very limited 30- or 90-day warranty on uncertified models that covers the engine, transmission, and drivetrain or powertrain. If something goes wrong that’s not related to one of those things covered by the limited warranty, you’re on your own.

That said, after the dealership has you comfortably seated in the finance office and ready to sign all the paperwork, they’ll happily sell you an extended warranty, interior trim protection, and a tire repair policy. But the price creeps up little by little with each add-on, and pretty soon you’re approaching the price of a CPO model.

For more on these differences, check out Certified Pre-Owned Cars vs. Non-Certified Used Cars.

Should I Buy a CPO Car Instead of a New Car?

Not sure if you want a new car instead? Explore our new car rankings to see if the latest and greatest vehicles are worth the extra money. A comparison between new and CPO vehicles in our used car rankings could reveal that a new car isn’t worth spending more, or you may find that you can’t live without cutting-edge features. Either way, it’s important you get the car, truck, SUV, minivan, or wagon that’s right for you, and we’ve done the research to help you make that important decision.

It’s also worth checking the best car deals on new vehicles, as well as the best lease deals.

Where Do I Buy a CPO Car?

A CPO vehicle that is certified by the manufacturer can only be sold at that manufacturer’s dealership. If that Mazda you’re eyeing has a certified sticker on it, but it’s on a Mitsubishi lot, it’s not certified by Mazda unless that lot is also a factory-authorized Mazda dealership. You can usually go to the brand’s website and search their CPO inventory and find the car. If you can’t, it may not be certified by the automaker.

More Shopping Tools From U.S. News & World Report

Now that you have a better idea of what certified pre-owned cars are all about, the next step is determining which models make it on your shortlist. Start with our used car rankings to compare the vehicles that interest you. If you’re still on the fence, check out the Pros and Cons of Certified Pre-Owned Cars for more insight. Or, if you’re all set on buying a CPO, explore the CPO vehicles for sale in your area. 

No trip to the dealership is complete without first locking in the best price with the U.S. News Best Price Program, which saves the average buyer more than $3,000 on their vehicle purchase. To save on financing that discounted purchase, review our used car deals page to see what the best interest rates are for each brand’s CPO vehicles.