Certified Pre Owned Cars Used Does Not Mean Abused 1

You are here: Home


Written by Jimmy D. Moody
Monday, 09 February 2009

New cars are great. Beyond that fresh smell and being the first one to program the radio presets, it's a given that everything works, and if there's a problem the warranty will take care of it. The downside, of course, is the new car price and the psychological gut punch that comes from the alarming rate of depreciation that begins the moment you drive off the dealer's lot.

But savvy buyers know there's a way to dodge the depreciation hit and still get almost all the bennies of a new car purchase most notably the peace of mind that comes with knowing that the car you've just bought is going to start tomorrow morning, and if it doesn't, you won't be left holding the bag.

The route to budget friendly yet generally safe used car buying is a manufacturer certified, pre owned car or truck (CPO for short).

A CPO vehicle is a late model used car most typically a 2 to 3 year old model that has just been returned to the dealer at the end of its lease which is then thoroughly gone over by the dealer's service department and body shop, if cosmetic repairs such as fixing door dings are necessary. Anything that needs to be repaired is repaired, and normal service work (e.g., brake jobs, front end service, oil and filter changes, etc.) is performed. Then the vehicle is given a multi point inspection; the automaker that built the vehicle determines the criteria. Once the vehicle passes this inspection, it is ready for resale as a CPO car or truck. The vehicle is backed by a comprehensive and/or limited powertrain warranty issued by the manufacturer that covers future problems, should they develop, just as if you were buying a brand new vehicle.

There are two factors that make the CPO vehicle possible. One, there are literally millions of late model vehicles coming back from their original leases every year. Nineteen ninety nine and 2000 were very lease heavy years, with about 3.1 million leased vehicles about to be brought back in during the next few months.

Two, these late model vehicles like pretty much all cars built in the last few years are exceptionally durable and well built compared to the cars of the past. A 2 to 3 year old car or truck with 20,000 or 30,000 miles on it is hardly broken in; even 40,000 miles is no big deal these days. Assuming it wasn't abused and the recommended service is performed, a late model car can be expected to run reliably well beyond 100,000 miles; 150,000 is a solid bet; and 175,000 not at all uncommon. In the not so distant past (before the mid 1980s), cars began to become expensive money pits after 70,000 miles and usually were in very poor condition by the time the odometer rolled past 100,000 miles.

Thus, we have a situation where there are huge fleets of nearly new vehicles with most of their useful lives still ahead of them looking for new owners. The automakers (and their dealer networks) realized it would be very good business to offer these vehicles for resale with organized manufacturer backing, dealer service, and warranties comparable to new car warranties. And thus was born the idea of the certified, pre owned vehicle.

Last Updated ( Monday, 09 February 2009 )