Certified pre-owned (CPO) vehicles are cars that have undergone an inspection at a dealership and are now available for sale. These used vehicles are taken to the dealership's service department and inspected by mechanics for signs of rust, excess wear and tear, and mechanical issues.
So, what are you getting when you buy one of these vehicles? Should you buy a used car or a CPO? In this post, we’ll discuss what to watch for and what to expect when buying a CPO.
What is Certified Pre-Owned (CPO)?
CPO vehicles typically come from fleet purchases. This means they could have had a past life as a rental car, and then after they reached a certain mileage, they were sold back to the dealership. CPO cars are gently used, low-mileage and accident-free.
When they arrive at the dealership, the service team gives them a thorough check. After the mechanic’s inspection, the dealership may pull a CARFAX or AutoCheck report for any signs of the vehicle being in an accident. The dealership then prices the vehicle and offers some kind of warranty upon completion of its valuation.
CPO programs are meant to give the potential buyer peace of mind that the vehicle has been looked over, that simple problems were fixed, and that if something was missed, the buyer could return to the dealership for potential warranty coverage (though this may not always be the case).
There is a difference between a factory CPO and a CPO. While both contain the phrase “certified pre-owned” the disparity is that a factory CPO vehicle must pass the manufacturer’s checklist of items to be certified at the manufacturer’s authorized dealership. For example, Ford Motor Company requires its Ford dealerships, depending upon the grade level, to inspect up to 172 points on a vehicle before it can be labeled CPO.
A factory CPO is another small reassurance for the customer. Using Ford again, if the Ford dealership fails to follow Ford Motor Company’s agenda for CPOs, the dealership could face consequences up to and including losing franchise rights. The dealership wants to get it right.
How Do You Know if a Car is a Factory CPO?
Edmunds advises looking at the vehicle’s window sticker. Check to see if the manufacturer’s logo is on the sticker. Also take a look at the vehicle’s warranty. If the warranty’s logo and sticker logo match then it's most likely a Factory CPO. It’s a good idea to do this because a franchised dealership may have its own CPO program in addition to the Factory CPO plan. Only the Factory CPO program is backed by the manufacturer.
So what about a non-factory CPO? As mentioned above, dealerships can have their own CPO program in addition to the factory CPO plan. Under its own CPO plan, the dealership decides what to inspect, what to certify and what, if any, warranty applies. Other non-factory CPOs include some used car lots, independent dealers and online car businesses.
CPO Vehicles Still Require an Informed Buyer
A certified pre-owned vehicle does not excuse you from doing your due diligence on the used car. It’s still recommended that you take a CPO to an independent mechanic and have it reviewed. They may find other faults with the car, and — armed with this advice — you can disclose to the dealer any additional issues that you want to be repaired or request a price reduction in exchange for accepting the vehicle as is.
It’s also up to you to read all of the paperwork thoroughly to know what issues were found and what is covered in the warranty should a problem arise later. Knowledge is power!
If the dealership doesn’t offer a CARFAX or AutoCheck report, it’s worth getting one on your own. All you need is the Vehicle Identification Number (VIN). You’ll be able to see if the car has been in a wreck or has been reported stolen.
Also, check out the vehicle’s Kelley Blue Book value to see if the price listed by the dealership is reasonable. Don’t assume the vehicle is in excellent condition. Find the price range from excellent all the way to poor and know that the value should be within that range. Don’t forget to check for any recalls on the vehicle you’re considering buying. The National Highways Traffic Safety Administration (NHTSA) has a free online tool to check the vehicle by entering its VIN. An educated buyer is the best buyer. Know what you’re getting into.
You’re Paying More for a CPO
A certified pre-owned car will cost you more than a regular used car. You didn’t think dealers offered multi-point inspections, newer, low-mileage, and extended warranties for free, did you? Of course not.
Dealers will upcharge for a CPO, and that peace of mind comes with a price. It bears repeating: don’t accept a CPO inspection as gospel. Always take every used car to an independent mechanic for an inspection before purchasing.
Certified Pre-Owned Programs
If you're interested in a Ford, a Ford dealership is the best place to start looking. If you're looking for a Chevrolet, a Chevy dealership is the best place to start.
Nissan: Nissan has recently enhanced its CPO program to include a better warranty. Nissan’s Certified Select program now includes pre-owned vehicles up to 10 years old and up to 100,000 miles. You can go to Nissan@Home for online shopping. The program also includes one pre-paid maintenance visit at a Nissan dealership.
All Nissan Certified Select vehicles have a multipoint inspection and come with a 6-month/6000-mile warranty. Customers can choose to buy Nissan Certified Select vehicles online, and some participating Nissan dealers will even deliver vehicles directly to the customer’s home.
Nissan also has a second program: Nissan Certified Pre-Owned. In this program, only Nissan vehicles are eligible, and the cars must be 6 years old or younger.
Ford: Ford’s version of CPO is Ford Blue Advantage. The program launched in March 2022 and even offers the Kelley Blue Book Price Advisor on the site to show if the listed price is a good deal or a great deal. Vehicles on the site have passed up to a 172-point inspection and come with a 12-month/12,000-mile warranty.
Each Ford Blue Advantage vehicle also features comprehensive limited warranty coverage, a 14-day/1,000-mile (whichever comes first) money-back guarantee, 24/7 roadside assistance and FordPass Rewards Points eligibility, which are all backed by Ford. There are restrictions, so read the fine print carefully.
GMC: The GMC Pre-Owned Advantage program offers a scheduled maintenance program for its CPOs. The program visits must occur before two years or 24,000 miles once the car is delivered.
GMC also has two factory-backed warranties: a new, longer 6-year/100,000-mile powertrain limited warranty, (whichever comes first, from original in-service date) that includes roadside assistance and a 12-month/12,000-mile bumper-to-bumper warranty.
Toyota: Toyota’s Certified Used Vehicles program has been around since 1996 and has sold more than 7 million certified used cars since then. To qualify for Toyota’s Certified Used Vehicle program, the car must be newer than 6 model years old, have less than 85,000 miles, and pass a 160-point inspection.
Toyota offers a 12-month/12,000-mile limited comprehensive warranty, 7-year/100,000-mile limited powertrain warranty, and 7-year/100,000-mile 24/7 roadside assistance. Should you resell your Toyota Certified Used Vehicle, the extended warranty coverage is transferable at no cost.
Volkswagen: Certified Pre-Owned Volkswagen has a model-specific limited warranty program. Model year 2017 and older vehicles can expect a 2-year or 24,000-mile (whichever comes first) comprehensive limited warranty.
Model year 2018 and 2019 vehicles get a 1-year or 12,000-mile (whichever comes first) comprehensive limited warranty. Model year 2020 and newer vehicles receive a 2-year or 24,000-mile (whichever comes first) comprehensive limited warranty.
Volkswagen also does a 100+ point inspection on its cars plus gives you the CARFAX report, a SiriusXM Platinum Plan free trial subscription, and 2-year 24/7 roadside assistance.
Daimler Chrysler: Daimler Chrysler’s Certified Pre-Owned Vehicle Program (CPOV) certifies vehicles less than five years old and fewer than 75,000 miles. They do a 125-point inspection and a reconditioning process using authentic Mopar parts.
Chrysler, Dodge, Jeep, Fiat, and Ram CPOVs have a factory-backed 7-year/100,000-mile powertrain limited warranty, 3-month/3,000-mile maximum care coverage, 24-hour towing and roadside assistance, car rental allowance, CARFAX vehicle history report, and an introductory 3-month subscription to SiriusXM. Plus, you can decide to get a certified warranty upgrade that could cover the CPOV for as long as you own it.
Honda: Honda True Certified offers 7 years/100,000 miles limited powertrain coverage, up to two free oil changes within the first year of ownership, 24/7 roadside assistance, and you can download their 182-point inspection of the vehicle.
Honda has different grades of its True Certified program with the pinnacle being the Honda True Certified+. True Certified+ relates to 2021-2022 vehicles with less than 80,000 miles. This grade level offers 7-year/100,000-mile powertrain coverage. Its non-powertrain coverage limited warranty is 5 years/86,000 miles.
Lower Honda True Certified grades still offer warranty coverage of some type on their used inventory. The years of coverage and miles driven are less than the premium True Certified+.
Online Dealerships: Full disclosure: the company that owns this blog, CarPro, has certified vehicles you can check out online and we’d love for you to take a look. It’s easy to do. Once on CarPro go to Buy a Car and select Find a Car. On the quick and easy form, select Certified Pre-Owned. Put in your zip code and hit Enter. If you know what make/model you’re looking for, you can narrow down your search even faster. While CarPro is currently only available in four states — Texas, Ohio, Oregon and California — it’s growing and adding dealerships weekly.
Online dealers such as Carvana and Vroom also have certified pre-owned vehicle programs. Remember that both Carvana and Vroom do their own CPO programs and they’re not factory-backed CPOs.
Check out more online dealers. Take a look at other manufacturers’ certified programs here.
Should I Buy a CPO Vehicle?
Certified pre-owned programs can offer a piece of the puzzle when trying to find a good, used vehicle, but they shouldn’t be relied upon as the sole indication you’re looking at a good, sound vehicle. You need to do your homework. Look over all paperwork. Double-check that you know what the warranty covers and doesn’t cover. Check the CARFAX, Kelley Blue Book, and Black Book reports.
Most importantly, take the car you’re looking at to an independent mechanic for an inspection. All of these resources will help you make a good, informed decision.
About CarPro
CarPro is a one-stop-shop for everything automotive. Buy a car, sell your car, and get the latest auto news and advice all on carpro.com. CarPro has built a network of vetted, certified dealers (CarPros) in large metro areas in California, Ohio, Oregon, and Texas known for providing exceptional customer service. Think of us as your personal auto dealer referral service, connecting you with trusted experts—for free. CarPro can also help you sell your car nationwide for payment on the spot. We're here to help you make informed decisions.
