Certified Pre-Owned Vehicles – Are They Worth It?
Buyer Beware…The premium charged by dealers offering Certified Pre-Owned (CPO) vehicles is often not a good value. Many surveys cite that the warranty tacked on to a CPO vehicle is the main reason for purchasing the car. What most buyers do not realize is that the warranties that are tacked on to CPO vehicles are often limited powertrain warranties and/or short term mid-range coverages.
Certification doesn’t come cheap. For luxury cars, the average premium charged is 7.8% of its price, or $3,400. That money will buy you a full bumper to bumper coverage for 4-5 additional years with lots of money left over.
For all the talk of 120+ point inspections, limited warranties, vehicle history reports and others, there is no data to suggest that CPO vehicles are any more reliable than their non-certified cousins. Given that, why pay more for “certification”?
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Filed under: Consumer Affairs, Extended Car Warranty Coverage, Warranty Direct
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