What Does a CPO Program Entail?
What Does a CPO Program Entail?
You must have heard about CPO programs run by automobile manufacturers. It refers to the Certified Pre-Owned facility under which the dealer conducts multiple inspections for testing the conditions of a used car. If a major issue is found during these inspections, it is immediately resolved and the car is reconditioned for sale. There are many benefits of buying a vehicle under this program if you are looking for a cost-effective option. Before making a move though, you should assess all the benefits and demerits of this decision. Here they are:
The Benefits of a CPO Program:
Every vehicle covered under this program is backed by a comprehensive warranty for maintenance over a set period of time. This car comes with multiple benefits like roadside assistance, free services, car rental reimbursements, towing facilities and extended protection plans offered by the dealer. You can also avail buyback guarantee at some dealerships. The advantages of this program also include the following:
It Offers Significant Depreciation Savings
The value of a new vehicle is severely affected by the cost of depreciation during the first two to three years. When you buy a brand-new vehicle, this value takes a drastic hit instantly. In fact, it may incur 30-40% depreciation over the tenure of ownership. With a CPO vehicle, you can mitigate this additional loss on the value of your investment.
It Entails Multiple Inspections
It is always advisable to buy a pre-owned car after getting it thoroughly checked and inspected by an expert. Under the certification program run by the manufacturer, every used vehicle undergoes a series of checks and inspections conducted by dealerships. Any mechanical issue or damage is immediately repaired to restore the condition of the vehicle. There are certain preconditions specified by the manufacturer to make a used car eligible for this program. They should not have more than 50,000-80,000 miles on their odometer and the age of the vehicle should be four to six years. These conditions may vary from one company to another.
It Ensures an Easy Finance
When compared to non-CPO cars, it is easier to secure financing for Certified Pre-Owned vehicles. You can avoid the legwork involved in the financing of a new vehicle. Most importantly, you can save a lot of money on this purchase.
What are the Disadvantages of Buying a CPO Vehicle?
A huge variety of vehicles are available under CPO programs. When compared to non-certified used vehicles, they carry a higher price due to the series of inspections and repairs that they undergo. These inspections are imperative for the long-term performance of your vehicle. They make the car costlier at the onset but, you can leverage these costs over time. Dealers also provide additional benefits and finance options to offset the higher pricing of CPO vehicles.
If you are in the pursuit of a brand-new vehicle, this option may not sound good for you. This vehicle is a used automobile that is refurbished by the dealer and offered with extended warranties at much lower prices.
Understand your needs and assess these points to decide whether or not you want to invest in a CPO car.