Used vs. Certified Pre-Owned: Which is the Better Deal in 2024?

Most everyone is familiar with used cars, but not everyone knows the ins and outs of Certified Pre-Owned vehicles. No matter which automaker is behind them, CPO vehicles tend to represent the best examples and best deals in the used car market. It’s important to realize that price isn’t the only thing that determines a good deal on a used car.

What Are CPO Cars?

CPO stands for Certified Pre-Owned, which means that the automaker backs a used car that has passed a comprehensive inspection. Standards for the CPO program vary by automaker, but it’s usually for used cars that are only a few years old and have less than 60,000 miles. All CPO vehicles are used cars, but not all used cars meet the standards of a CPO. Both types of used cars have absorbed the initial depreciation of a new car.

Peace of Mind With CPO Cars

Looking at used cars can be a stressful experience as you have to fully vet the vehicle by pulling up its history and having it inspected by a mechanic. CPO cars are not only fully inspected, but they’re also backed by a factory warranty from the automaker. Typically, dealers that offer CPO vehicles also provide customers with vehicle history reports. Most used cars don’t come with warranties unless they’re new enough to have a remaining warranty from new and that warranty is transferable. Not all warranties are.

Advantages of Buying Used Cars

There are some advantages of buying regular used cars vs CPO. The biggest one is the price. Due to all the extra work that goes into a CPO vehicle, the price tag is higher. You might consider buying a regular used car if you want to pay cash or you simply want to pay the least amount possible. The used car market has a wide selection of price ranges for cars. However, the lowest price doesn’t always mean the best deal. You’ll need to consider the condition and mileage of the vehicle.

Advantages of Buying CPO Cars

The biggest advantage of buying a CPO vehicle is peace of mind. It may cost more to begin with, but it’s the next best thing to buying new. However, finding a CPO isn’t always easy as there are fewer of them available than regular used cars. You might also have to settle for a trim or color that is outside of your preference. If you’re willing to search more extensively and pay a bit more, the CPO car is likely to prove a better deal in the long run as it’s backed by the manufacturer and has undergone a comprehensive inspection.

How To Find the Best Deals

Many CPO vehicles in the past were vehicles coming off lease with low mileage and good maintenance. After passing an inspection, the vehicle would be reconditioned and backed by the manufacturer. Unfortunately, there have been fewer vehicles coming off leases since the pandemic. This makes CPO vehicles harder to find in some cases. In both cases with used cars and CPO, you’ll likely need to conduct an extensive search in your price range.

In the end, there are good deals for both used cars and CPO, but it depends largely on your budget and preferences.