What Does Certified Pre-Owned Mean?
Deciding between a brand-new car and a used one has always been a tough choice for car buyers — but Certified Pre-Owned (CPO) vehicles offer a compelling middle ground. These cars aren't brand new, but they're not your typical used car, either. They are typically 6 years old or less, and undergo rigorous inspections and refurbishments to meet the high standards set by the manufacturer.
In this article, we'll explore the benefits and important things to consider when thinking about buying a CPO vehicle, including factors like reliability, warranty coverage, and overall value.
What is a Certified Pre-Owned car?
A Certified Pre-Owned vehicle is a used car that has undergone a thorough inspection and refurbishment process to meet specific quality and performance standards that are typically set by the manufacturer, with the goal of providing buyers with a reliable and well-maintained alternative to a new car.
Some dealerships may call their cars CPO even though they are not associated with a manufacturer. You’ll want to check that the CPOs you’re interested in are manufacturer-backed.
These cars may come from auctions, trade-ins, and so on. Once a (franchised) new car dealer acquires a potential vehicle for the CPO program, its certification process should include a comprehensive inspection of the vehicle's mechanical and cosmetic aspects. The dealer should then address any issues found through necessary repairs and reconditioning.
Dealerships follow a comprehensive set of criteria when scouting for potential CPOs to ensure that these vehicles meet high-quality standards. Specific requirements will vary between manufacturers and dealerships, but here is a general list of what dealers typically look for when considering a vehicle for CPO status:
- Vehicle Age and Mileage Limits: Manufacturers and dealerships often set limits on the maximum age and mileage a vehicle can have to qualify for CPO status. This ensures that CPO cars are relatively recent models with lower mileage.
- Mechanical Inspection: A mechanical inspection is conducted to assess the overall condition of the vehicle. This includes checking the engine, transmission, suspension, brakes, and other critical components.
- Vehicle History Report: Dealers review the vehicle's history report to check for accidents, title issues, and odometer discrepancies. A clean history is typically a requirement for CPO qualification.
- Maintenance and Service Records: Comprehensive service records are often required, showcasing that the vehicle has been regularly maintained and serviced according to the manufacturer's recommendations.
- Warranty Requirements: CPO vehicles typically come with an extended warranty. Dealerships may require that certain components are covered under warranty for a specific duration or mileage.
It’s important to note that CPO requirements will differ from manufacturer to manufacturer, so what qualifies as a CPO Mazda will likely be similar across all Mazda Dealers, but the definition could be different for other brands.
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The primary distinction between a CPO car and a used car lies in the level of inspection and assurance they offer. Certified cars undergo a rigorous inspection process, meeting manufacturer and dealership standards for quality and reliability.
They often come with extended warranties and additional benefits, providing buyers with greater peace of mind compared to traditional used cars, which may not have undergone such thorough scrutiny or offer the same warranty coverage. While certified cars tend to come at a slightly higher price, the added assurance and warranty coverage can make them a compelling choice for buyers seeking a reliable pre-owned vehicle.
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Manufacturer-backed CPO programs are directly supported by the vehicle's original manufacturer, ensuring that the certification process adheres to specific brand standards. These programs often come with extended warranties, thorough inspections, and genuine replacement parts. In contrast, other certified programs offered by independent dealerships or third-party organizations may vary in their standards and warranty coverage.
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Luxury and non-luxury CPO programs both offer used cars with manufacturer-backed warranties, but they have some differences. Luxury CPO programs are linked to high-end brands and usually come with longer warranties and extra benefits.
Are Certified Pre-Owned cars worth it?
Determining whether Certified Pre-Owned (CPO) cars are worth it depends on individual priorities and budget considerations. Here is a breakdown of the pros and cons to help you make an informed decision.
Pros of buying a Certified Pre-Owned vehicle
- Cost Savings: A CPO vehicle can be less expensive than buying a similar new car outright.
- Lower APR: CPO programs often offer more favorable financing rates compared to traditional used cars. Lower APR can result in reduced monthly payments and overall savings, making a CPO vehicle a financially attractive option for buyers.
- Higher Quality: Compared to many other means of purchasing used cars, CPO cars always undergo rigorous inspections, ensuring that they meet manufacturer standards for both mechanical reliability and aesthetic appeal. This emphasis on quality typically translates into a better overall ownership experience.
- Peace of Mind: One of the most significant advantages of choosing a CPO vehicle is the peace of mind it provides to buyers. Knowing that the car has undergone a thorough inspection, had a clean history, and comes with extended warranty coverage contributes to a sense of security and confidence in the purchase.
- Warranty Coverage: CPO programs typically include extended warranties that go beyond the original factory warranty. This coverage often addresses a range of components, offering protection against unexpected repairs and potentially lowering the total cost of ownership over the vehicle's lifespan.
- Financing Options: Financing a CPO vehicle can be more flexible and accessible. Some manufacturers offer special financing programs or incentives for CPO cars, making it easier for buyers to secure favorable loan terms and potentially reducing the financial burden of the purchase.
- Extra Perks: Many CPO programs offer additional perks that enhance the ownership experience for used vehicles. These may include benefits such as complimentary maintenance services, roadside assistance, and trial periods that allow buyers to experience the vehicle before committing fully. As an example, with the Mazda CPO program, drivers enjoy zero deductibles on covered repairs, 24-hour emergency roadside assistance, and a complimentary 3-month trial for Sirius XM®.
Cons of buying a Certified Pre-Owned vehicle
- Higher Price Compared to Other Used Vehicles: CPO vehicles generally come with a higher price tag compared to traditional used cars. The added cost reflects the benefits of certification, extended warranties, and thorough inspections, but can make CPO cars a pricier option for buyers, depending on the vehicle.
- Some Research Required: The standards and coverage differ between manufacturer CPO programs and dealership CPO programs. Buyers should invest some time in researching and understanding the specific details of the CPO program they are considering, to ensure it aligns with their expectations — same as they would for new cars or another type of used car purchase.
- Restricted Availability: Because CPO vehicles are limited to those which have been maintained relatively well, the selection can be limited, particularly if the car you’re looking for is a special make or model. Dealerships might have fewer options compared to traditional used car inventory, restricting the choices available to buyers.
- Short Loan Terms: Financing options for CPO vehicles may come with shorter loan terms compared to new cars.
- Inherent Risk of Used Vehicle: Despite the certification process, buying a used car, even a certified one, carries inherent risks. Buyers are always encouraged to take proactive steps, such as obtaining a CARFAX report, conducting a thorough inspection, and test-driving the vehicle, to mitigate uncertainties and ensure they are comfortable with the condition of the CPO car.
- Negotiation: Prices aren’t set in stone, so buyers still must research the value of the vehicle they’re looking to buy to negotiate the overall price of the CPO vehicle — just like buying a regular used car.
Can you lease a Certified Pre-Owned vehicle?
Yes, it is possible to lease a CPO vehicle. Leasing a CPO car gives drivers added assurance and benefits that come with the certification process. When considering leasing a Certified Pre-Owned vehicle, it's important for potential lessees to review the specific terms and conditions of the lease agreement, including mileage limits, maintenance requirements, and any additional fees. Additionally, understanding the warranty coverage provided with the CPO program is crucial to making an informed decision and ensuring a positive leasing experience.
Should you buy a Certified Pre-Owned vehicle?
Deciding whether to buy a CPO vehicle requires careful consideration of individual preferences and priorities. Here are five essential questions to ask yourself before deciding:
- What Are My Budgetary Constraints? Assess your budget and financial considerations. While CPO vehicles offer additional assurances, they often come with a higher price tag compared to traditional used cars. Consider whether the benefits of certification align with your budget and financial goals.
- What is the CPO Vehicle’s History? While CPO vehicles can’t be certified if they’ve been in a serious collision, buyers should still make sure they get a copy of the vehicle’s history to make sure the vehicle has received proper routine maintenance to avoid unforeseen repair costs.
- Who Certified the Car’s Quality? Determine if your vehicle is a manufacturer-backed CPO or a dealer-backed CPO vehicle. As outlined above, manufacturer-backed CPO vehicles meet stricter requirements for certification, whereas dealership-based CPO policies typically aren’t as stringent.
- How Does the Car Ride? Buyers should test-drive any CPO vehicle they’re interested in purchasing to test out the overall ride quality.
- What is the Warranty Like? Before purchasing a CPO vehicle, buyers should make themselves familiar with the terms and conditions of the CPO vehicle’s warranty. Consider the length and coverage of the warranty offered by the CPO program and whether it aligns with expectations.
- What is the Return Policy? In the event buyers end up unhappy with their CPO vehicle — for whatever reason — it’s important to understand the dealership’s return policy before buying the vehicle. This way there are no surprises if buyers want to give their vehicle back.
What is included in the Mazda Certified Pre-Owned Program?
Cars accepted into the Mazda Certified Pre-Owned program must pass a rigorous 160-point inspection in order to receive a certification. The Mazda inspection covers major and minor components of each CPO vehicle — from A/C and heating systems to the exterior of the vehicle and the engine.
Every Mazda Certified Pre-Owned vehicle benefits from the remaining duration of its original 3-year/36,000-mile New Vehicle Limited Warranty. In addition, the CPO Limited Vehicle Warranty extends coverage for an additional 12 months or up to 12,000 miles, featuring a no-deductible policy on covered repairs. If a Mazda CPO vehicle is beyond the coverage period of the New Vehicle Limited Warranty at the time of purchase, the CPO Limited Vehicle Warranty becomes effective immediately. Mazda also provides a 7-year or 100,000-mile CPO Limited Powertrain Warranty for added coverage. Both warranties are transferable to the vehicle’s next owner at no cost, increasing the resale value of the vehicle. Your local Mazda Dealer will have complete Limited Warranty details.
To help buyers ensure their vehicles are up to scratch, each of the Mazda CPO vehicles comes complete with an AutoCheck® Vehicle History Report and three-year Buyback Protection from Experian. Finally, satellite radio-equipped Mazda CPO drivers get to enjoy 3 months of complimentary access to SiriusXM®, which has more than 150 channels of commercial-free music and radio.
Shop Mazda CPO inventory
The decision to invest in a CPO vehicle is a nuanced one, influenced by factors such as budget, preferences, and the desire for added peace of mind. Through the Mazda Certified Pre-Owned program, drivers get the benefits of a new car with the assurance that Mazda has their back, allowing them to drive off the lot with confidence.
To get started, explore our inventory of meticulously inspected CPO vehicles online, then find a dealer near you to reserve a test drive.
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This article is intended for general informational purposes only and is based on the latest competitive information available at the time of posting. Information herein is subject to change without notice and without Mazda incurring any obligations. Please review a variety of resources prior to making a purchasing decision. Visit Resource Center for more articles.