When buying a new car, drivers usually have a choice between a new, used or pre-owned vehicle. However, most buyers may not know the difference between a used and a pre-owned car.
Generally, a pre-owned car will come with a complete inspection certificate listing parts replacements and auto repairs done before the car was listed for sale. On the other hand, a used car usually carries what is remaining in the factory warranty if it is valid and transferable.
Are Used Cars Worth It?
A used car offers the biggest benefit in terms of saving money when buying a new vehicle. Whether you are buying a used car from a dealership or a previous owner, there is often room for negotiation.
On the downside, used vehicles do not come with a 150-point inspection or include a warranty. However, if necessary, you can purchase an extended warranty on the used car.
Another advantage of buying a used car is that it has a slower decline in value compared to a new car. New cars lose their value within the first year of ownership. They can depreciate by up to 20% of the original value, and the first driver typically takes up this loss.
On the downside, used cars tend to have higher mileage. If you have decided to buy a used car, it is important to remember that with proper care and maintenance, most modern vehicles can last for over 200,000 miles. Consider having a certified mechanic inspect and take the used car for a test drive before buying.
Advantages of Used Cars
So, what are some of the advantages of used cars over certified pre-owned cars? Let us find out:
Lower Price Point
Used cars are much cheaper than certified pre-owned vehicles of the same make and model. It is a much more attractive option for buyers who have a tight budget.
For some buyers, the amount needed to buy a certified, pre-owned vehicle can buy a better, more expensive, the higher trim level used car model.
More Options
Buying a used car gives you more options. Dealerships offer a variety of used car models, and buyers are spoilt for choice. You may even get several options for a particular model.
Disadvantages of Used Cars
Unfortunately, used cars also have their own share of cons which include:
High Risk
One of the major disadvantages of buying a used car is that there are no quality standards to meet, so it is difficult to tell its history. However, you can get a professional mechanic to inspect it before signing any documents.
No Warranty
Most warranties on used cars are expired, so in case of repairs, the buyer must pay out of pocket.
Higher Financing Rates
If you need financing for a used car, you are likely to pay higher interest rates because it is difficult to establish its value.
What Are Certified Pre-Owned Cars?
A certified pre-owned car is usually factory-certified and is typically listed for sale at a dealership carrying the same brand. Certified pre-owned cars must meet high standards determined by the manufacturer in order to be listed for sale.
These cars are lightly used and thoroughly inspected before the manufacturer’s extended warranty can back them. It is important to note that this warranty does not offer the same level of coverage as a new car warranty.
CPO cars also typically have lower mileage and require fewer repairs than used cars. However, having a trusted certified mechanic inspect the car is still advisable. The extended manufacturer’s warranty protects buyers against expensive repair costs.
In some cases, CPOs may also come with free maintenance for a specific period, roadside assistance, free vehicle history reports, comprehensive warranty up to a certain point, and other benefits.
Advantages of Certified Pre-Owned Cars
So, why should you consider a certified pre-owned car over a used car? Here are some pros to consider:
Warranty Coverage
Certified pre-owned vehicles come with a manufacturer’s warranty which covers repairs in case of any problems.
Low-Mileage
Most certified pre-owned cars must be no older than 6 years old. Different manufacturers have different mileage requirements, which ensures that the car will offer you value for your money for more years.
150-point Inspection
Manufacturers require thorough inspection before they can certify a used vehicle for sale. The car is then repaired for any problems detected, ensuring that the car remains problem-free for a longer time. This also lowers the risk of the car causing an accident.
Disadvantages of Certified Pre-Owned Cars
However, it doesn’t mean that everything about certified pre-owned cars is rosy. Here are the disadvantages of these cars:
Higher Price Point
Most manufacturers spend a lot of time, money, and effort to ensure that a certified pre-owned vehicle is suitable for sale.
During the inspection, repairs are made, and any defects are corrected to ensure that the car is in top condition.
These extra repair costs make certified pre-owned cars more expensive than used cars.
Limited Choices
Due to the strict requirements and low mileage expectations, not many cars can pass the inspection requirements. You will have limited options if you are in the market for a CPO.
Are Certified Pre-Owned Cars Considered Used Cars?
Certified pre-owned cars are still used cars. They have been on the road for a few years. However, the manufacturer thoroughly inspects and refurbishes them before getting listed for resale.
This does not rule out the fact that they may still have some problems and these cars are also likely to have some wear and tear.
While manufacturers have different specifications for CPOs, buyers must carefully examine vehicle reports from companies such as Autocheck or Carfax to understand the extent of wear and repair that the car might require.
Used Cars Vs CPO Cars: Repairs
Most CPOs must go through rigorous manufacturer programs before they can be certified. Typically, a CPO car must pass a 150-point inspection. This gives drivers more peace of mind compared to used cars. CPOs are also clean cars that meet mileage standards.
Vehicles that have suffered major damage or have problems such as mechanical or electrical issues cannot be considered for listing as CPO cars.
In addition, all CPOs are reconditioned where necessary, including paint and bodywork, interior components, and mechanical components, before the manufacturer’s extended warranty back them.
Used Car Vs CPO Car: Warranties
As discussed earlier, CPOs come with a warranty. Usually, the warranty lets you benefit from what is left over on the warranty or extends the duration beginning at the end of the expired, new car warranty.
CPO cars can also be financed or leased depending on the dealership. CPO cars that have substantial service and less mileage are considered better cars and carry superior warranties.
Used cars do not come with warranties, and buyers bear the extra cost of purchasing warranties as needed.
Where to Buy a Used Car or a Certified Pre-Owned Vehicle
There are plenty of options when buying a used car. You can buy a used car almost anywhere, from private sellers and used car supercenters to car dealerships.
However, your options may be more limited if you are in the market for a certified pre-owned vehicle. CPOs are only available from their manufacturer dealership.
If you are looking for a specific used car model, it may be easier to search on a non-certified used car market. To find a specific CPO model, consider casting a wider geographic net and buying from dealers who are not in your home area. Fortunately, there are many online resources that you can use to find your preferred CPO model.
Used Cars Vs Certified Pre-Owned Cars: Which Is Better?
Certified pre-owned cars were invented in the luxury vehicle market. Nearly all modern car manufacturers have CPO programs to cater to their consumers who cannot afford brand-new cars.
There are numerous options for CPO cars, from luxury cars to inexpensive SUVs. However, your budget is the main determining factor on which car to buy between CPOs and used cars.
Armed with the differences between the two cars, you are better suited to decide which car is best for your needs.
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