New vs certified pre-owned car: Which is the better choice?

When the time comes that you plan to replace your old vehicle, you have three options: you can buy a brand-new car, a used one, or a certified pre-owned or CPO car.

Most of the time, when someone hears something that is certified, they tend to trust the products' quality. However, if you’re a car hunter, do you really know what it means when a car is a certified pre-owned?

This article from Philkotse.com will explain the difference between a new car and a certified pre-owned car.

When you plan to buy something that is a significant investment, such as a brand-new car, it's vital that you have all the information you can get.

Doing so will make you informed and will help you build budget-conscious decisions about what deal is the best for you. So, which will you choose? Will you go for a new, used or CPO car?

New cars

Brand-new cars are those vehicles that come straight from the manufacturers. It comes with price tags and a plump warranty.

These cars will most probably lose much of their value once they are driven off the lot. It will further depreciate over time. New vehicles lose 60% of their total cost over the first five years of its life.

The main reason why most car buyers want a new car is the fact that there has been no wear and tear on any of the vehicle’s parts and components.

Its brakes are fresh, the tires are new, and you can assure that the previous owners have never thrashed it.

In addition, new cars are also equipped with the latest infotainment and safety technology and features. So, if you're the type of car buyer who wants to have the greatest and the latest in the auto industry, then a brand-new car is the best option for you.

Brand-new cars are those vehicles that come straight from the manufacturers

>>> Find out more: For new car owners: 10 things are essential for the brand-new car

Used cars

Car buyers often think that used cars are a riskier bet, particularly of these vehicles are not bought at a dealership but though private sellers. In cases like this, you cannot guarantee that the car will come with a detailed history of its whereabouts, maintenance, repair, and treatment.

That is the main reason why it's recommended to buy a used vehicle only at a qualified and professional dealer. It will prevent you from wasting your money on a car that has more issues than your previous one and regrets buying it.

It's recommended to buy a used vehicle only at a qualified and professional dealer

If the thought of buying new and used cars seems to be not the best option for you, then you can consider this third option, which is the certified pre-owned. Let's dig deeper into what CPO means and its advantages and disadvantages.

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What is a certified pre-owned car?

CPO vehicles are the ones that have undergone a full inspection and any other necessary repairs, as stated by the carmaker. More often, CPO cars are in an "almost-new" or "like-new" condition.

Compared to used cars, CPO costs more but usually comes with roadside assistance and extra warrantied, which you can only get when you purchase from a dealership.

CPO vehicles are the ones that have undergone a full inspection and any other necessary repairs, as stated by the carmaker

Sometimes, CPO cars are also referred to as "reconditioned used car" because it’s guaranteed to have high quality. These cars aren’t brand new and not a decade old either. Certified pre-owned cars are usually between 3 to 8 years old.

If you are offered a CPO or reconditioned used vehicle, you must make sure you’ll acquire all the needed documentation on paper. Don’t forget to review each information carefully. 

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Advantages of CPO cars

Only vehicles of the best condition can qualify

Before a vehicle is accepted into certified pre-owned programs, which are usually sponsored by car manufacturers, it should be a low-mileage, late model with a clean car history report.

If the car doesn’t meet a particular criterion, which varies depending on the car manufacturer, it can’t be a certified pre-owned car.

Before a vehicle is accepted into certified pre-owned programs, it should be a low-mileage, late model with a clean car history report

There are different reconditioning processes and multi-point inspections

To meet the standards of CPO programs, the dealer needs to examine, replace, and recondition lots of things in the car, but again, it will vary depending on the automaker.

But in general, certified pre-owned vehicles have undergone 100 to 200 individual parts and components checked, and it needs to be approved first before it can be put to a sale as a certified used car.

To meet the standards of CPO programs, the dealer needs to examine, replace, and recondition lots of things in the car

It still has extended warranty protection

Most certified pre-owned programs extend the original powertrain and basic warranty on a CPO car.

More often, companies providing mileage limits and shorter-term time for the original new vehicle warranty will most probably extend their CPO programs by higher amounts to be competitive.

Most certified pre-owned programs extend the original powertrain and basic warranty on a CPO car

For car manufacturers that offer generous warranty cover for new cars may not increase limits for their certified pre-owned cars. Instead, the remaining warranty of the new car will be transferred to the new owner.

>>> FYI: Everything drivers need to know about car warranty

Other benefits of CPO cars

• These vehicles are sold through licensed car dealers
• A CPO car that is 2 to 3 years old will enable car buyers to save around 25% compared to a brand-new car of the same make and model.
• You can trust the dealer because you can’t lie about the certified pre-owned car’s condition.
• It comes with a car history report and a CPO checklist particular to every manufacturer and their different standards. 
• The coverage varies from one manufacturer to the other. So most probably, you will find something around 60,000 miles or 6 years of coverage from the CPO’s original sell date.
• You will enjoy the perks of being an in-between new and used car.

Tips for buying a CPO car

If you plan to purchase a CPO car, it’s pretty similar when buying a brand-new car. However, there are some extra steps you must take to make sure you will have the best deal.

Initially, you will need to verify that the car is certified by the manufacturer. Take note that some dealers call their used vehicles as certified.

If you plan to purchase a CPO car, it’s pretty similar when buying a brand-new car

But you need to make sure it is factory certified so that you will also get all the benefits of a CPO car. Genuine factory certified cars can be found from their own brand's dealer.

Also, even though it is already a CPO car, you still need to make sure to check the vehicle history report because it is still a used car. You also need to have an independent mechanic to have it checked and inspected.