If you’ve decided to buy a new vehicle, you’ll need to decide whether to choose a brand-new vehicle or a secondhand one. The main consideration is which one makes the most sense budget-wise. While a brand-new vehicle sounds like the more tempting option, second hand vehicles are now very popular due to a certified pre-owned rating.
Cars that are certified pre-owned are the perfect compromise between costly brand-new models and mechanically questionable secondhand units. Here are three reasons to go with a certified pre-owned vehicle.
1. Get Peace of Mind
You’ve probably heard or read about those horror stories of second hand cars dying on their new owners after just a day or two of driving. Even if it’s a used vehicle, you should not have to worry about your ride breaking down in the middle of nowhere or on a major highway. You shouldn’t be concerned about costly repairs either. Before a vehicle can be certified, it has to go through a comprehensive inspection and pass a certification program that is offered by either a manufacturer or a franchised car dealership.
Manufacturer-backed certification programs enforce strict standards in terms of which vehicles qualify for certification. Cars must meet specific age and mileage limits, specifically no older than four to six years with a maximum odometer reading of 80,000 miles. Depending on the auto manufacturer, these limits may slightly vary.
2. Get Warranty Coverage
Certified pre-owned cars that sustain damage are covered by an extended manufacturer-backed warranty briefly once the original warranty ends. This is especially useful when shopping for vehicles that bear extended coverage for bumper-to-bumper and powertrain repairs and replacements. In addition to powertrain protection, your CPO vehicle’s extended warranty typically comes with roadside assistance coverage. This is a complimentary 24-hour roadside assistance service that is valid until the duration of the extended warranty.
Depending on which CPO vehicle program you buy from, you may also get free maintenance for a limited time or for a certain mileage. Essentially, this free maintenance plan only covers certain services, such as oil changes and tire rotations that are performed based on the manufacturer’s recommended maintenance schedule.
3. Get a Lower Interest Rate
Certified pre-owned vehicles are generally more expensive than their non-certified counterparts. That said, CPO vehicles are also eligible for more favorable interest rates. Since lenders also get peace of mind that the vehicle being covered by the auto loan has been thoroughly inspected by a professional, they view the loan as lower risk, thus resulting in a lower interest rate offer.
If you do not wish to commit to a financing deal, leasing is also offered by some auto companies that have CPO vehicles in their lots. It’s a viable alternative for people who wish to drive a more expensive late-model CPO vehicle but who cannot afford or who do not want to purchase one through financing.
A certified pre-owned vehicle makes more financial sense for most car owners and everyday commuters. It’s cheaper and faster to pay off than a brand-new vehicle while also being safer and more reliable than non-certified options.