What Does CPO Mean?

Not everyone wants to buy a new car. You’d be surprised, but many people prefer to purchase a used vehicle of a higher class or a more prestigious brand. Another argument in favor of used cars is an extensive model range. It might come in handy if you dream of getting yourself a penultimate-generation model, for example.

What Is A Certified Pre-Owned Car?

The term was introduced in the 1990s, with Lexus and Mercedes-Benz being among the first to offer CPO programs. A certified pre-owned car is a used car that has been thoroughly inspected under the manufacturer's supervision. Worn and defective parts are replaced and repaired, and the car gets an additional warranty.

Of course, when buying a CPO car, you should perform some personal inspection. However, the chance of getting a quality car is higher if it is a CPO. Most brands exclusively certify their products, but some work with third-party brands as well. The type of warranty service depends on the manufacturer. For example, Ford offers 12 months with a mileage limit, and Lexus offers two years regardless of mileage.

What Requirements Are There For A CPO Car?

There is no unified certification standard in the automobile industry, but all manufacturers' main requirements are similar. As a rule, these are modern models up to five-six-seven years old with a mileage of 60,000 – 80,000 miles and an accident-free history. Some brands offer even older cars. For example, for Mitsubishi, Škoda, and Volkswagen, this restriction is seven years or 90,000 miles, for Citroën, Peugeot, and Nissan, it’s eight years, and in the Porsche Approved program, there are cars under nine years old with mileage to 125,000 miles. At the same time, the share of cars older than five years in total sales of CPO cars by these manufacturers is relatively small, from 10% in Mitsubishi to 28% in Peugeot.

A typical offer looks like one year from the date of purchase but with a mileage of 12,000 miles during that period. If the original factory warranty period has not expired, the second owner can receive the remainder in addition to the term under the CPO program.

A CPO car is checked by mechanics according to a list of technical points. Usually, there are more than a hundred of them, sometimes several hundred or even 1,000. In the latter case, it is more of a marketing thing than a necessity, because many inspection points are insignificant and will not tell anything about the actual condition. There are requirements for each point in every manufacturer's program. Parts that don't meet the criteria are replaced or repaired by the dealer who certifies the car.

In addition to the basic warranty, manufacturers can make longer service commitments on individual assemblies and systems, such as powertrain, transmission, electrics, air conditioning, etc. Generally, a certified used car is more reliable than the one you find in a shop for used cars. Nevertheless, be careful: thoroughly inspect the car before the deal and check its history through a specialized VIN decoder.

Do Luxury Brands Also Offer CPO Cars?

Indeed, the certified pre-owned business has proven to be an excellent idea for both humble and ostentatious brands. The premium concerns Cadillac, Rolls-Royce, Bentley, Ferrari, Lamborghini, McLaren, and Aston Martin have already picked up the new trend. Each has a division specializing in used car maintenance.

To qualify for the Mercedes CPO, the car must be new or no more than six years old, and its mileage should be less than 75,000 miles. Eligible vehicles are then subjected to a 164-point inspection.

If the original warranty (50,000 miles and four years) is still valid, the warranty will be transferred to the CPO buyer. The owner will receive another year of certified warranty with unlimited mileage if the original warranty has expired. There is also the option to purchase additional coverage, which also includes unlimited mileage. This program covers extra 24-hour roadside assistance and reimbursement for covered repairs.

Summary

The purchase of a used car is akin to a lottery, in which you can buy either a vehicle that is able to serve you faithfully for many years for reasonable money or an eternally breaking source of headache that will empty your purse time and again. Nevertheless, buying a CPO car is better than just choosing a used car on your own, as in the case of the former, you will know for sure that the vehicle has undergone a profound check.

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