You are online searching for a used car and find some deals that seem too good to be true. You think to yourself, the car must be a salvage, or perhaps damaged in a flood, or a million other things. Then you think it might be a good car at a great price, but you aren’t really sure. The whole process of buying a used vehicle can stress out almost anyone. There are so many shady car dealerships around. In fact, for decades comedians have told endless jokes about used car salesmen.

Certified Vehicles Pros and Cons

The last thing you want after buying a used car is for some catastrophic mechanical failure to take place, like an engine or transmission going out. These repairs can cost thousands and, in some cases, equal the value of older used cars. Buying a certified pre-owned automobile can eliminate a lot, but not all, of the uncertainty of buying a used car. It’s also a win situation for many dealers, because it brings in more customers. It also, if done right, creates long-term trust. This is because classifying vehicle inventory as certified gives a dealership a degree of credibility with their customer base.

Where do these cars come from? The majority of these vehicles come from lease terminations. This is when a customer lease ends and they turn the car in to the dealer. Some dealers keep these cars and resell them and other sell them at auction and other dealerships pick them up. The main pro of buying a certified pre-owned car is it has gone through an extensive evaluation and you are probably not buying a lemon.

Will a CPO vehicle get you discounted auto insurance rates? The short answer is no. According to there aren’t any major auto insurance companies that allow peoples with low income to get very cheap auto insurance no down payment for buying a certified used automobile, but it doesn’t hurt to ask. You should also carefully check car insurance rates online before buying any vehicle, whether it had passed the certification process or not.

Almost every single auto manufacturer has a certified pre-owned program. These come with two main benefits. The first is a strict inspection protocol. The second is a warranty, which gives potential buyers an added level of buying security. Another pro is the extensive nature of the protocol. A mechanic will take hours and carefully go through numerous components of the vehicle, looking for any underlying serious mechanical issues. This includes the brakes, transmission, tires, and hoses, just to name a few. The car has to come up to a high standard, in order to achieve CPO certification.

The only real con of buying a certified pre-owned automobile is the cost. Vehicles that are stamped as CPO cost more. This may surpass the budget of some customers and cause them to risk buying a less expensive car, that breaks down faster. Certified cars can cost hundreds more and for some, on a tight budget, it’s just too expensive.

CPO Warranties are Restricted

A CPO warranty is not exactly the same as getting a warranty from a brand-new vehicle. With a new car bought at a dealership, you might have a bumper to bumper warranty that covers almost any repair imaginable. With a certified pre-owned warranty, there are typically many exclusions. For example, BMW CPO vehicles have an extensive list of warranty exclusions, from items on the interior to certain engine components. Other manufacturers are more generous with their CPO warranties.

General Motors will cover almost any part on their CPO rated cars. This includes interior items and almost anything that is damaged under the hood. This is a big incentive for those that are weighing their options. A full warranty is, after all, better than a partial one.

Some Companies Require A Deductible payment

Just like regular auto insurance claims, when a claim is made on a CPO car, often times a deductible is required. Ford, for example, will require you to pay a $100 deductible. Toyota is half that, with a deductible of only $50. Also check for the length of the warranty. Some auto manufacturers have long warranty times. For example, Lexus has boasted about a 6-year warranty program. This can be a bit deceptive. If you read the fine print, it’s actually for two years, with up to 4 years leftover on the original new car warranty, from the time it was purchased. Almost no-one will get the full 6 years out of the merging warranties, but it is extensive protection that sways many buyers. Lexus is also known around the world for its world class quality cars.

Some manufacturers put certain restrictions on warranties you should be aware of. For example, a Ram pickup can’t be older than 5 years and must have less than 75,000 miles. This is why it’s important to due your due diligence and again read all the fine print. Another plus is CPOs add value to the vehicle. According to one Consumer Report study, a certified pre-owned vehicle was valued at more than $700 more than a similar make and model that was non-certified. This is a win-win for the consumer. They pay a little more for the certification, but their vehicle then goes up in value. So, the next time you are thinking of buying a used car, take a hard look at buying a pre-owned certified vehicle and sleep well at night.