Questions to Ask When Buying a Certified Pre-Owned Car

Certified pre-owned (CPO) cars present an ideal way to purchase a newer auto in like-new condition but at a depreciated price. With the help of a checklist, manufacturer-trained mechanics inspect each pre-owned vehicle that is five years old or newer. Once the car passes all the necessary inspections and meets the manufacturer's standards, the vehicle is officially considered a certified pre-owned car. However, it is important to ask the right questions when purchasing a certified pre-owned car.

How Long Does the Warranty Extend and Does it Have a Decuctible?

The warranty details can vary from manufacturer to manufacturer. It is not uncommon to find a pre-owned vehicle with a warranty that extends three years or longer, while another dealer may have a comparable auto with a six-month warranty. It is important to get the specific details, as some warranties cover a certain number of miles rather than offering coverage over a specific period of time.

Manufacturer certified pre-owned vehicle warranties typically do not carry a deductible, but even when a deductible does apply, the amount is minimal, about $50 or less. In contrast, a service contract, or third-party warranty, often applies a deductible on a per-visit or per-repair basis.

Does the Warranty Include Other Incentives?

Manufacturers often include incentives, such as 24-hour roadside assistance, free detailing or a free oil change.

Is This a Manufacturer-CPO-Backed Vehicle?

Manufacturers are not the only ones offering extended warranties on certified vehicles. Independent dealers have joined the certified pre-owned market as well. However, purchasing a manufacturer CPO auto guarantees that manufacturer dealers nationwide will honor the warranty. Manufacturer-backed pre-owned vehicles are newer and in better condition.

Does the Car Have a Third-Party Warranty?

Not all vehicles advertised as certified are factory-certified. Some dealers require that you pay for a third-party warranty when buying one of their certified vehicles. The original manufacturer does not back the warranty on such vehicles. The warranty is included in the price of a genuine manufacturer certified pre-owned vehicle. You should not have to pay separately for the warranty.

What Is the VIN?

Investing in an independent inspection of a pre-owned vehicle is a wise decision. You will need the vehicle identification number (VIN) to ensure that the vehicle has not suffered flood damage or been in a collision accident.