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November 21, 2008, Newsletter Issue #169: The Truth About Dealer Certified Pre-owned (CPO) Programs
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Tip of the Week
Since certified pre-owned (CPO) cars are marketed “like new” without the expense, car dealerships price CPO automobiles higher than non-certified cars. Certified-pre-owned cars are used vehicles that have passed a series of safety and maintenance inspection. These programs carry a specified term of warranty coverage.
It is important not to confuse a car certified by a dealership with a CPO vehicle from a manufacturer. The two certification programs vary in scope and advantages. Based on consumer research, CPOs backed by manufacturer programs have been shown to experience fewer maintenance problems than automobiles certified by an individual car dealership. The advantage to buying a certified pre-owned vehicle opposed to a new car is that a consumer may buy a luxury automobile for a lower price.
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