Shopping for a preowned vehicle in Plano, Texas, involves making several important decisions, and one of the most significant is whether to choose a used car or a certified preowned (CPO) vehicle. CPO vehicles are typically 1 to 5 years old, have been lightly used, and have passed thorough inspections. They also come with manufacturer-backed extended warranties, offering you additional security. Our team at Huffines Chevrolet has put together this guide on used vs. CPO vehicles to help you make an informed choice.
Understanding the Basics: Used vs. CPO
The CPO market has grown significantly, making up nearly 20% of used vehicle inventory during the first quarter of 2024. This percentage is even higher in the luxury segment, where CPO vehicles account for approximately 25% of used listings.
Definition and Key Differences
Used cars are previously owned vehicles sold in their current condition, while CPO vehicles undergo extensive inspections and must meet specific criteria before receiving certification. All of our used cars are certified. We offer two CPO programs: the Chevrolet-backed CPO program and our own Premium and Value Certified cars programs.
Chevrolet CPO vehicles must be under 6 years old and have fewer than 75,000 miles to qualify for manufacturer certification. We put these vehicles through a comprehensive 172-point inspection process to verify their condition and reliability. Our Premium Certified vehicles undergo a 125-point inspection, reconditioning, and certification process, while our Value Certified vehicles undergo an 80-point inspection.
Brief History of CPO Programs
CPO programs started as a way for manufacturers to provide customers with a middle option between new and used vehicles. These programs addressed concerns about preowned vehicle quality and reliability while offering better value than new cars. Their success has led to widespread adoption across the automotive industry, with most major manufacturers now offering CPO options.
Detailed Comparison: CPO vs. Preowned
There are many differences between used and certified cars; for example, CPO vehicles undergo extensive multipoint inspections. These thorough evaluations help identify and address potential issues before the vehicle is certified.
Price differences are also noteworthy; CPO vehicles typically cost 2%-8% more than comparable noncertified used cars. However, this premium often represents good value, as 2-year-old CPO vehicles usually cost 25% less than new models, while you can save up to 40% compared to new vehicles on 4-year-old CPO vehicles. The average advertised CPO vehicle price in early 2024 was $35,169, compared to the average new vehicle price of $48,229. In addition, Consumer Reports research shows that CPO vehicles have approximately 15% fewer problems than standard used cars.
Financing options also differ significantly. It's possible to get a lower interest rate on a CPO vehicle than a used car, as many manufacturers offer special financing for CPO cars, helping you offset their higher purchase price.
Certification Process: What Makes a Vehicle CPO?
There are several factors affecting whether a vehicle can be certified. Let's look at a few.
Inspection and Refurbishment Standards
The CPO certification process involves detailed inspections covering mechanical, electrical, and cosmetic components. Our cars at Huffines Chevrolet Plano must pass a 172-point inspection to qualify for the Chevrolet CPO program. Everything from engine performance to interior condition is examined.
Manufacturer vs. Dealer Certifications
Not all certifications are equal. Manufacturer-backed CPO programs provide standardized certification processes and benefits across their dealer networks. Only franchised dealers can sell manufacturer-certified vehicles, which often come with more comprehensive warranty coverage and nationwide support.
Warranty Differences: Used vs. Certified
Other areas to consider are extended warranties and guarantees. We'll outline the details below.
Extended Warranties and Guarantees for CPO Vehicles
CPO warranties typically extend coverage one to two years beyond the original factory warranty. Some powertrain warranties can extend up to 100,000 miles, with typical warranty deductibles ranging from $50-$100. At Huffines Chevrolet Plano, we offer an extended new car bumper-to-bumper limited warranty for 12 months/12,000 miles on our Chevrolet CPO program cars. We also provide a complimentary 90-day/3,000-mile limited warranty or the remainder of the manufacturer's warranty on every vehicle in our Premium or Value Certified inventory that is 9 years old or newer and has less than 100,000 miles.
Typical Warranty Options for Used Cars
Most used cars are sold as-is without warranty coverage. Some might retain part of their original factory warranty, but this depends on the vehicle's age and mileage. While extended warranties and service contracts are available, they're often pricier and may offer less comprehensive coverage than CPO warranties.
Special Financing Deals for CPO Vehicles
CPO vehicles frequently qualify for special financing rates closer to new car loans than typical used car rates. You can save substantially on interest; average new car loan rates are currently 6.73% compared to used car rates of 11.91%. Many manufacturers also offer promotional financing deals on their CPO vehicles, sometimes with a 0% annual percentage rate for qualified buyers.
Additional Benefits of Buying CPO
There are several other advantages to buying a CPO vehicle.
Roadside Assistance and Complimentary Services
CPO programs typically include 24/7 roadside assistance, covering services such as towing, lock-out assistance, and fuel delivery. Many programs also offer trip interruption coverage, which can help with expenses if your vehicle breaks down away from home. Our Huffines Chevrolet Plano team provides additional perks, such as free trial periods for SiriusXM and OnStar.
Free Maintenance Offers and Vehicle Return Policies
We offer a three-day/150-mile exchange program on our Chevrolet CPO vehicles. So, if something changes (or you don't love the color), you can exchange it. We back up our Premium and Value Certified cars with a three-business-day or 200-mile return policy.
Making an Informed Decision: CPO or Used?
Choosing between a CPO and a used vehicle depends on your priorities and budget. CPO vehicles offer additional peace of mind through comprehensive inspections, warranty coverage, and extra benefits but come at a slightly higher price point. Regular used cars can provide significant savings but will require more careful evaluation and carry more risk.
Visit Huffines Chevrolet Plano to explore our selection of CPO vehicles and learn more about how our certification programs can make your vehicle purchase an easy, reliable, and value-packed experience.
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