Certified pre-owned vs. used: Edmunds explains which is better

When shopping for a used car, many buyers struggle to know if paying extra for a certified pre-owned one is worth it. Buying a certified pre-owned vehicle, commonly called a CPO vehicle, has benefits and drawbacks. Understanding the differences can help you make an informed choice that aligns with your budget, priorities and desire for peace of mind. Here Edmunds editors take an in-depth look at the benefits, limitations and considerations for each.

What is a CPO vehicle?

Certified pre-owned vehicles are used vehicles that have been inspected and refurbished by a dealership to meet specific quality standards determined by the manufacturer. They typically come with a manufacturer-backed warranty, roadside assistance and other perks.

One of the primary benefits of a certified pre-owned vehicle is the assurance of quality. These cars undergo an inspection process — often encompassing 100 to 200 points — to ensure they meet safety, performance and cosmetic standards. Any necessary repairs or replacements are completed before the vehicle is put up for sale. Buyers also benefit from additional protections, such as extended manufacturer warranties that often cover major components and systems beyond the original factory warranty.

Another advantage is that certified pre-owned vehicles may come with added perks, such as complimentary maintenance, roadside assistance, and sometimes even exchange or return policies. These benefits can provide significant peace of mind for buyers who want reliability at a lower cost than a new car.

However, these advantages come at a price. Certified pre-owned vehicles are typically more expensive than non-certified used cars. This premium can range from a few hundred to several thousand dollars depending on the make, model and dealership.

What if you buy a car that’s not CPO?

Most used vehicles are sold as-is, without any manufacturer-backed certification or guarantees. While they don’t come with the same assurances as certified pre-owned vehicles, they do typically cost less.

Affordability is the biggest draw of buying a regular used car. This upside makes a standard used vehicle an attractive option for those looking to save money up front. However, purchasing a standard used car carries more risk because it’s harder to know the vehicle’s true condition. While some dealerships may offer limited warranties, these are usually less comprehensive than the coverage provided with certified pre-owned vehicles.

Key factors

Budget should be your first consideration in this decision. If you have the financial flexibility to pay more for a certified pre-owned vehicle, it may be worth the investment.

Next, think about your risk tolerance and maintenance preferences. If peace of mind is a top priority, the thorough inspection and warranty coverage of a certified pre-owned vehicle can provide significant value. But if you’re comfortable conducting your own due diligence and gambling a bit on future repair costs, a standard used car might be the better choice.

The vehicle’s age and mileage are also important considerations. Certified pre-owned programs typically have strict requirements for these factors, so you’ll likely find newer models with lower mileage. This also means that you’ll find a better selection when shopping for non-certified used cars.

Finally, be sure to research the dealership and manufacturer’s certification program. Not all CPO programs are created equal; some offer more comprehensive inspections and better warranties than others. Similarly, when buying a standard used vehicle, seek out a reputable dealership. Paying for your own inspection is a good idea with any standard used vehicle. Expect to spend $200 to $300.

Limitations to keep in mind

Buying a certified pre-owned vehicle doesn’t guarantee a trouble-free ownership experience. Problems can still arise, although they’re less likely than with a non-certified used car.

Standard used vehicles also have their drawbacks, chiefly the lack of warranty and inspection guarantees. Also, be aware of the look-alike certified warranty. These are warranties offered by the dealership selling the vehicle, which rarely meet the same standards as a manufacturer CPO warranty. For example, the vehicle will likely only be eligible for warranty repairs at that dealership, while many CPO programs let you take your car to any certified dealership.

Edmunds says

Whether you’re buying a Certified pre-owned or regular used vehicle, be certain to read the fine print that determines the terms of your purchase or your warranty coverage. A few examples: Some standard used vehicles may come with a return or exchange policy that can add comfort to the transaction. And sometimes redeeming all your benefits under a CPO program must be done within a certain time window, which limits its value.

_____

This story was provided to The Associated Press by the automotive website Edmunds. Josh Jacquot is a contributor at Edmunds.