The iron-clad rule about buying a used car is to always have it checked out by a professional technician before committing to purchase. Sure, the inspection delays the sale and adds some extra cost, but wouldn’t you rather discover problems before you sign on the dotted line? Discovering and fixing problems before the sale is what’s behind Certified Pre-Owned (CPO) used car inspection and warranty programs.
Car manufacturers have always offered some pretty lucrative lease deals on their cars. It’s a great way to introduce consumers to the car maker’s brand and to create brand loyalty. But as these vehicles come off-lease, they also provide a steady stream of relatively new low mileage used cars for the dealers. Car makers depend on a positive used car buying experience to turn you into a second generation loyal customer, or even a new car buyer in the future. So there’s a lot more riding on the quality of the CPO inspection and clean up process than you think. Keeping you happy and creating peace of mind, is why manufacturers provide an extended warranty on their CPO vehicles.
Many of the CPO standards relate to getting the vehicle into “like new” delivery condition. The dealer makes sure you have an owners manual, a genuine key and key fob (for keyless entry vehicles), the radio and navigation system security codes, and by checking and replacing all wear items (fluids, filters, brakes, belts) if they’re more than 50% worn. The dealer also performs a vehicle identification number (VIN code) status check, making sure that the vehicle has not been involved in any major accidents and that the VIN matches the title, and all major body and drive train components.
With a “clean” title and proper VIN credentials established, the dealer then inspects the vehicle for any unauthorized aftermarket modifications that might either affect the operation of the vehicle or reduce its value. If they find any modifications, they must remove them and return the components to factory condition.
The dealer then updates the vehicle to comply with any safety recalls and engine performance, or emission service updates that have been issued since initial delivery. Almost every manufacturer releases periodic technical service bulletins to correct powertrain, electrical, and body performance issues. In some cases the bulletins require a part update, while others require only the installation of updated software. The point, however, is that the selling dealer is in the best position to know which updates are critical to ensure carefree operation. So buying a CPO vehicle from the dealer can actually save you quite a bit of money on the “update” issue alone—savings you won’t get from a private seller.
Every manufacturer discusses their CPO process on their web site and lists the terms of their extended warranties. It pays to read the checklists and review the warranties—they differ from manufacturer to manufacturer.