School me on Certified Pre-Owned (CPO)

[CR94]

The "work" could have been nothing more than an inspection or minor maintenance. Tire tread √, brake pads √, filters √, change oil √

My CPO Toyota included fresh oil change (plus two "free" future ones), new filters, new floor mats, new Chinese tires, and new wiper blades. At 41,130 miles, the car was in like-new condition, as far as I could tell, aside from a few minor scratches and slightly droopy rear bumper cover. Never had any occasion to make a claim through the warranty, other than one trivial item, a missing push-pin fastener.
Their inspection check-list showed they supposedly checked a few items that don't even exist on this car.

 

[CharlieBauer]

The "work" could have been nothing more than an inspection or minor maintenance. Tire tread √, brake pads √, filters √, change oil √

Yes it depends on the condition the vehicle came in and what the CPO requirement from the manufacturer is.

But it will be disclosed as part of the purchase process. You can often find it as part of the listing on the dealer website.

In my case it was 4 new tires (from the manufacturer approved list) and new front brakes and a few other things.

 

[Hall]

My CPO Toyota included fresh oil change (plus two "free" future ones), new filters, new floor mats, new Chinese tires, and new wiper blades.

Yours did, but many will not need those. Plus, that dealer spent $150 in parts (floor mats being the most $) then the cost of the tires (and it sounds like they cheaped out there). Honestly, they did the bare minimum and in fact, they may do that for every used vehicle they put on their lot. When I bought my wife's Fusion (from a Ford dealer), they replaced all (4) brakes, turned the rotors, put BF Goodrich tires on it, wheel alignment, oil change, wiper blades and cut/programmed a 2nd key. I'm pretty impressed with what they put into it. It was NOT a Ford CPO either.

 

[JeffKeryk]

I bought our 2013 GS350 F Sport used under CPO. I forget what it added to the price, but I was happy to get it. I think it was 2 years unlimited mileage. I was not worried about the drivetrain, but I was worried about all the electronics. If they had to get into the dash, I just might be in trouble. Plus, the F Sport model had spark plug replacement at 60K; the 60K Lexus service was probably $2,000 around here. I love this car, but it sucks the gas.

 

[Shel_B]

 

[97prizm]

My thoughts came up after reading a recent post where someone had a CPO car under warranty with a failure that may or may not be a wear item.

Is CPO just a more expensive used car or is it a great deal compared to buying new?

Reason I ask is I'm still considering a CPO Explorer I found at a nearby Ford dealer that seems like a good deal. I've never bought anything with a warranty before, always well used. My Escape did come from this same dealer many years ago and it's been a fantastic car. But that was at 60K miles, as-is, no warranty. Other than that I've always bought older very well used vehicles.

Ford's CPO drivetrain warranty is 100K/7Y vs new cars only get 60K/5Y. But, if it would come to a warranty claim under CPO, are you at a disadvantage when compared to being the first owner of a new car? Is it likely they will try to wiggle out of it? Or will they treat you just the same as if you bought the car new?

Does anyone have any positive or negative experiences with their CPO vehicle of any brand, of course if you have experience with the Blue Oval CPO program I'd love to hear it. This is what Ford says about their "Gold Certified" CPO program:

GOLD CERTIFIED VEHICLE SPECIFICATIONS​

• Ford models up to 6 years old with less than 80,000 miles
• Passed a thorough 172-point inspection
• 12-Month/12,000-Mile (whichever comes first) Comprehensive Limited Warranty1
• 7-Year/100,000-Mile (whichever comes first) Powertrain Limited Warranty1
• 14-Day/1,000-Mile (whichever comes first) Money Back Guarantee2
• 24/7 Roadside Assistance3
• 22,000 FordPassTM Rewards Points4 to use toward your first two maintenance visits

The Lexus and VW CPO always seemed like a good deal with the added milage/years. As long as the techs properly went through the vehicle correctly then there shouldn't be any problems.

 

[k1xv]

I view buying a CPO as getting a car with 90 percent of its life remaining for 60 percent of its new car price.

Often these cars are vehicles coming off of lease, with low mileages. As the lease often included all scheduled service, you know it was maintained at the dealer. And, you get a dealer warranty. You can check the CARFAX to see when and where it was maintained. If the same dealer who leased it initially is now selling it CPO, its likely a good car.

And I think the dealers treat CPO buyers well, because they want you to come back to either buy or lease a new car, or another CPO. My BMW and Lexus were both CPO, and I would do it all over again.

 

[Pelican]

I've seen enough evidence to know CPO can mean a whole lot of different things depending on the dealer. I've seen CPO cars with significant issues that could only be missed if the dealer wasn't doing ANY of the CPO checklist.

Absolutely, it's all up to the dealer, but I'd expect the Top Brands to do what a CPO is supposed to be more so than any of thhe big 3.

 

[CharBaby]

The 2015 Altima 2.5 SV(MSRP $26K-ish) in my signature was a NISSAN FACTORY CPO car(NOT a dealer CPO) that I bought in APRIL 2015 for $19K. It was a dealer loaner vehicle with < 3000 miles on it. They had other examples with even less miles on them but, I didn't like the color combos, nor the particular models of vehicles they had. Lots of black on black vehicles.

I happened to get this car in the exact exterior/interior colors(tan on tan) that I wanted and in the "SV" trim grade that I prefer. NO LEATHER or SunRoof.

A loaner vehicle is for customers who brought their own vehicle in for services/repairs and needed a vehicle til their vehicle was ready. This Altima was never sold and never left that dealers possession so, I was the first owner(or 2nd owner if you count the dealer).

The dealer knocked $7200 off of the sticker price for depreciation, installed new brake rotors at my request(there was some brake pulsing), changed the oil/filter and gave me 2 more OCI's along with a 7 year/100K mile drive train warranty and upped the basic warranty from 3 yr/36K to 5 yr/60K and 0% for 3 yrs. I did get 2yr road side assistance and 3mo/SIRIUS XM radio and a few other things that I can't remember.

This is just my story. Others are similar depending on the vehicle, year, mileage. I suggest that if you can find a dealer loaner vehicle instead of a trade-in vehicle, you may get a slightly better vehicle example with lower miles. However during these times of vehicle shortage(s), IDK how many dealer are keeping new vehicle around for loaners to customers bringing in their vehicles for service.

 

[dishdude]

I view buying a CPO as getting a car with 90 percent of its life remaining for 60 percent of its new car price.

I really wish that were the case, but every time I've looked at one and compared it to new the discount for buying used just wasn't enough for me to justify it.

I'm sure location and specific vehicle play a major part so maybe I was just unlucky.

 

[JTK]

If you liked a CPO car but didn't want the CPO warranty could they drop it and lower the price?

I tried that on our 2016 Nissan Quest I bought used in 2016. I would have saved $300 on that particular deal dropping the CPO.

The only thing I would suggest to anyone considering CPO, check for maintenance records on the vehicle first. If oil changes, etc were not done to owner's manual recommend intervals by previous owners, get it in writing that this will not cause warranty coverage issues. Guaranteed dealer personnel will squirm on that one.

 

[k1xv]

I really wish that were the case, but every time I've looked at one and compared it to new the discount for buying used just wasn't enough for me to justify it.

I'm sure location and specific vehicle play a major part so maybe I was just unlucky.

Different cars depreciate at different rates. BMW cars depreciate like stones, which causes, and is caused by, many new cars leaving the showroom floor as leased vehicles as the leases appear to be subsidized by the manufacturer. This results in many cars coming off of lease, entering the used car market.

The recent used car market has been an aberration. Things will return to normal in a year or so.

 

[alarmguy]

I was reading from here regarding the 100K/7Y Powertrain warranty: https://www.marincountyford.com/ford-certified/

Yes!
I went back to the link I provided and it confirms what your dealer says.
I even thought the warranty sounded less than good when I posted.
It’s weird on Fords website to me anyway.
In the Gold warranty there is a second link confirming your dealer material.
Now it makes sense to me.
You have to click “View”

https://www.ford.com/cmslibs/content/dam/brand_ford/en_us/brand/cpo/pdf/FBLU01003_FMCK2629000_GoldCertified_Bro_R06.pdf

I was glad to get the GM Certified but even though they call it bumper to bumper there are exclusions such as lighting. It’s a little misleading by GM using those words when looking at the fine print but I thought still great.
Not sure if Ford the same yet either way I think it’s great for piece of mind if it’s not costing you above market value or better said costing more than it’s worth to you.

Personally, now that I bought. “Certified”
I would do it again as another has mentioned but if anything just for the warranty.
After decades of owning cars I never cared before, maybe I’m getting older or maybe just knowing how complicated cars are now, all things equal I would take the certified.

 

[NismoNVT]

My thoughts came up after reading a recent post where someone had a CPO car under warranty with a failure that may or may not be a wear item.

Is CPO just a more expensive used car or is it a great deal compared to buying new?

Reason I ask is I'm still considering a CPO Explorer I found at a nearby Ford dealer that seems like a good deal. I've never bought anything with a warranty before, always well used. My Escape did come from this same dealer many years ago and it's been a fantastic car. But that was at 60K miles, as-is, no warranty. Other than that I've always bought older very well used vehicles.

Ford's CPO drivetrain warranty is 100K/7Y vs new cars only get 60K/5Y. But, if it would come to a warranty claim under CPO, are you at a disadvantage when compared to being the first owner of a new car? Is it likely they will try to wiggle out of it? Or will they treat you just the same as if you bought the car new?

Does anyone have any positive or negative experiences with their CPO vehicle of any brand, of course if you have experience with the Blue Oval CPO program I'd love to hear it. This is what Ford says about their "Gold Certified" CPO program:

GOLD CERTIFIED VEHICLE SPECIFICATIONS​

• Ford models up to 6 years old with less than 80,000 miles
• Passed a thorough 172-point inspection
• 12-Month/12,000-Mile (whichever comes first) Comprehensive Limited Warranty1
• 7-Year/100,000-Mile (whichever comes first) Powertrain Limited Warranty1
• 14-Day/1,000-Mile (whichever comes first) Money Back Guarantee2
• 24/7 Roadside Assistance3
• 22,000 FordPassTM Rewards Points4 to use toward your first two maintenance visits

CPOs are used cars with an exclusionary warranty underwritten by the MFG, serviced by the dealership (usually the key differentiator being that 3p warranties are difficult to work with with when approving repairs since the mfg has FSM guidance vs a 3 p insurer). The clear numerical winner would be dealers. The numerical benefit for the end customer is nuanced.

CPOs may have longer warranties, better service benefits etcs, and thats something only you can valuate, the vehicle themselves are essentially selected in the same fashion. Cosmetic damage, resprays, bumper cover replacements etc can be a CPO vehicle as long as the profit margin is deemed acceptable by the same dealer (there is some general guide some SMs use, like if there are more then 3 panels to fix it aint being CPOed). In essence, you will always need to do a PPI to ascertain the vehicle condition, because CPOs are still used vehicles.

Historically speaking, the times CPOs were considered good deals, were if you are buying unreliable, high $$$ MSRP used vehicles close to having or have an expired powertrain warranty that cosemetically is in decent condition, used non-cpo vehicles that were the same price as a CPO vehicle, or you range limited your new vehicle purchase to a region where all dealers were difficult to work with lol.

Whats the budget on the explorer purchase, and range of dealerships you'd be willing to try to get say a new Explorer? You dont have to answer, but sometimes widening that net of dealerships, pays dividends in terms of price.

 

[PWMDMD]

I have first hand knowledge of CPO vehicles needing:

1. New brakes within 2k miles of being sold which would've been evident at the time of sale.
2. Significant engine work within 5k miles but it was evident driving it off the lot.
3. Not having recalls applied before sale including significant safety recalls.
4. Clearly having been in a major accident (there was no Carafe report) which was never disclosed.

It all comes down to the dealership but CPO does not mean take them at their word. I would still insist of an outside mechanic looking at the vehicle before purchase.

 

[NismoNVT]

Different cars depreciate at different rates. BMW cars depreciate like stones, which causes, and is caused by, many new cars leaving the showroom floor as leased vehicles as the leases appear to be subsidized by the manufacturer. This results in many cars coming off of lease, entering the used car market.

The recent used car market has been an aberration. Things will return to normal in a year or so.

I'm interested to see the next couple of months of inventory. MY20 off lease vehicles are going to be limited, so we might see a small blip in pricing again, or a slight plateau in the current pricing decreases. Who knows

 

[NismoNVT]

I have first hand knowledge of CPO vehicles needing:

1. New brakes within 2k miles of being sold which would've been evident at the time of sale.
2. Significant engine work within 5k miles but it was evident driving it off the lot.
3. Not having recalls applied before sale including significant safety recalls.
4. Clearly having been in a major accident (there was no Carafe report) which was never disclosed.

It all comes down to the dealership but CPO does not mean take them at their word. I would still insist of an outside mechanic looking at the vehicle before purchase.

TLDR They dont have a CPO factory that pumps out new CPO exclusive vehicles. All used cars need a quality independent of selling party PPI.

 

[supton]

I bought my Tundra at 3yr/73k on the clock, so it had a 7yr/27k warranty as a CPO. I planned on driving on only the weekends and paying the loan off early, so it worked with my criteria. And I liked the truck. The warranty did pay out for a front diff that failed. Didn’t have other issues, and I’m not sure what was and wasn’t covered under the CPO inspection (although it did have new brakes and other stuff), nor if all dealerships do what they are supposed to do.

Not sure if I would do again, but maybe I would. All comes down to the numbers. Is it a lower cost/mile and lower TCO? Or is it a lower upfront cost that works with my budget?

Would not touch a CPO if it wasn’t a factory backed warranty though. Maybe there are some good 3rd party warranties but I pretty much view them as worthless. If I want to gamble on a used car, I might as well save the coin—the gamble of a warranty paying out properly feels like a bet that the house always wins on.

 

[tblt44]

I feel more comfortable buying a cpo.
Not sure how it covers wear items since wear items are never covered.
A battery could fail at any time, breaks should be checked before sale

 

[NismoNVT]

I bought my Tundra at 3yr/73k on the clock, so it had a 7yr/27k warranty as a CPO. I planned on driving on only the weekends and paying the loan off early, so it worked with my criteria. And I liked the truck. The warranty did pay out for a front diff that failed. Didn’t have other issues, and I’m not sure what was and wasn’t covered under the CPO inspection (although it did have new brakes and other stuff), nor if all dealerships do what they are supposed to do.

Not sure if I would do again, but maybe I would. All comes down to the numbers. Is it a lower cost/mile and lower TCO? Or is it a lower upfront cost that works with my budget?

Would not touch a CPO if it wasn’t a factory backed warranty though. Maybe there are some good 3rd party warranties but I pretty much view them as worthless. If I want to gamble on a used car, I might as well save the coin—the gamble of a warranty paying out properly feels like a bet that the house always wins on.

The key to the 3P warranty is to have a real in depth read AND understanding between you and the service writer at your trusted dealership. Often its best to ask the SW what warranties they do regular business with before considering. Fun fact, sometimes the FM office warranties they sell, their service writer secretly dislikes/makes life for new owners miserable.