Are Certified Pre Owned Vehicles Worth The Premium That Dealers Charge?

By Paul Crosby, TestDriveNow.com

Now more than ever, people are looking for greater and greater value in every purchase decision they make. With the condition of the current economy putting a strain on every consumer’s wallet, companies are striving to invent new ways of adding value to their products and services. Nowhere is this more evident than in the auto industry.

In the past 10 to 15 years, there has been a surge in the number of manufacturers offering a CPO (Certified Pre Owned) program for their used vehicle fleet. The old consensus among manufacturers was the only sales that truly mattered where the monthly/yearly new vehicle sales totals. Now, with the advent of CPO programs, car companies view their sold late model vehicles and current lease vehicles as “on the road” inventory. These cars will eventually find their way back to the dealers’ lots, and if the condition of the vehicles is good, they can be refurbished to CPO condition. Once up to the manufacturer’s specifications for CPO, they are sold at a premium to comparable used models.

The CPO endorsement has the same meaning across manufacturers, but the actual process and standards to achieve this level varies widely from one manufacturer to the next. To some, it is a simple checklist of the vehicle functions and overall cosmetic condition, not too much more involved than your typical state inspection for roadworthiness. To other manufacturers, it is an extremely comprehensive list of items that are checked for proper function, fit, cosmetic condition and average life expectancy of the components. The goal of the dealerships selling these vehicles is to position them as a premium used car. They need to exceed each customer’s expectations of what a used vehicle should be.

The focus of any CPO program is not to restore the vehicle to like new condition. This is a common misconception by most consumers when shopping these cars. For the most part, CPO cars will be in nicer cosmetic shape, have lower miles and will feel better during the test drive. All of the following items should be checked when buying a CPO car:

• Proper operation of all interior electronics: power windows, locks, mirrors and sunroofs.

• If the vehicle is equipped with a Navigation system, be sure to check that it’s up to date with the latest software.

• Inspect the paint and bodywork. Do a very thorough walk around to look for any imperfections; most dealerships will repair any minor bodywork at their expense on a CPO car in order to make the sale.

• Look closely at the tires and brakes. Check for minimum tread depth on the tires and overall condition of the vehicles brake rotors (severely grooved brake rotors are easy to spot).

The main benefit of the CPO program to the consumer is the extended factory warranties that are attached to them. These warranty programs vary widely across the different manufacturers; do your homework on exactly what is being offered to you. Are CPO cars worth the extra money? If you are in the market for a used car, but still would like some of the benefits of a new vehicle (great condition car and a factory warranty), then the answer is yes.