A Certified Pre-Owned Car(CPO) is a used car which has passed the stringent quality inspection of the manufacturer and is sold with warranty by the manufacturer similar to a new car. These cars are more expensive than the traditional cars which you would generally find at the dealers or with individuals. This process was started in the 1990s by Mercedes and Lexus and now is followed by many other manufacturers.
Advantages
This is a great way for customers to get the luxury sedan which they always dreamed of at a much lower price tag than the new cars sold. The manufacturer gives various warranty and you can be sure of get a peace of mind with these cars. These vehicles undergo stringent quality inspection and so are in very good shape and sometimes also sold as like-new condition.
Disadvantages
The most important disadvantage is the price tag. A CPO is sold at a price much higher than other used cars at the dealership and the used cars sold by individuals. Generally the dealership has to spend a small amount from $300-$1000 to get the certification. If a car has greater problems it is sold “as is” without warranties or in auctions. Although this is a good way to keep the quality but it ends up costing much more than if you personally get the car checked by a experienced mechanic. If you can yourself get the car checked by a mechanic it would be much cheaper than getting a CPO.
However take care to go with a factory certification instead of a dealer certification. The latter is always a bit of a gamble and if you really are spending the extra money to get a CPO than better go with the factory certification. Currently 40% of all used car sales are certified used cars.
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