Certified Pre-Owned vs. New: 3 Factors to Consider

September 22nd, 2022 by

Choosing to buy an automobile is a big decision. Since purchasing a car is frequently one of the largest purchases of a lifetime (second only to buying a house), it requires careful thought and research. When it comes to choosing a vehicle, there are typically three options. Both new and pre-owned cars are available for purchase. In addition, there is a third category called certified pre-owned.

Even while each type of vehicle has benefits and drawbacks of its own, there is a strong case to be made that buying an older model is better than a newer one. In recent years, the certified pre-owned automobile industry has seen a significant expansion. In addition to being more affordable, used cars also come with a variety of advantages like reduced depreciation and a larger range of vehicle options.

Due to the magnitude and rapid growth of the certified pre-owned automobile market, experts suggest choosing these over new ones. However, the choice to purchase a new, or certified pre-owned item is totally up to the consumer. Still, before buying either, it is best to know the following:

1.      Certified Pre-Owned Vehicles Come with Peace of Mind Comparable to New Ones

Although most new cars are reliable, and if something does go wrong, it’s covered by the manufacturer’s warranty, they cost quite a lot more. You won’t have to worry about the condition of the vehicle when you get a brand-new one but there is a sometimes hefty price that you pay for this guarantee. New cars are expected to have the most modern fuel efficiency standards and safety features too but again, their prices can make them unaffordable for many.

On the other hand, one of the biggest advantages of buying a certified pre-owned car over a regular used car is the peace of mind that a private seller cannot offer or which dealerships offer for higher prices with new vehicles. To qualify as a certified pre-owned vehicle, your potential Chevy Suburban or any other used vehicle must pass a demanding multi-point inspection carried out by the team of professional auto mechanics at the dealership.

This means that you might be paying significantly less for the car overall but you are getting a vote of confidence from the experts who are certified by the manufacturer themselves. This ensures that the vehicle will not pose any issues related to expensive maintenance or parts replacement in the near future. This is something that will go a long way for owners.

2.      Certified Pre-Owned Vehicles Come with Warranties of Their Own

A Bumper-to-Bumper Limited Warranty for 12,000 miles of 12 months and a Powertrain Limited Warranty for 6 Years and 100,000 Miles are included with some Certified Pre-Owned vehicles from specific manufacturers. The period of the warranty depends on whichever comes first, the mileage or the time, from the original in-service date. These warranties are not just a way to provide customer satisfaction but also ensure that costs are mitigated if issues arise during the covered time period.

There is no denying a new car’s curb appeal, from the fresh-car smell to the shiny exterior and pristine interior, to the gasps from your pals when they first see it. In our consumerism society, a new car is an unquestionable status symbol that, quite literally, advertises your success. However, most new cars with their stylish looks, manufacturer provided warranties and improved tech will end up costing a fortune over the duration for which they are financed. This can be avoided simply by getting a certified pre-owned vehicle.

3.      There A     re Strict Parameters for a Car to B     e Certified Pre-Owned

While each automaker and brand certifies its vehicles according to its own standards, all certified pre-owned (CPO) vehicles must meet a few common standards: they must be under a certain age and mileage limit, have service records attesting to their thorough maintenance, and be able to pass a rigorous inspection process. This ensures that just like with new cars, individuals can drive a vehicle from the dealership knowing that they are in safe hands.

The purchase of a new car has a number of disadvantages too. First of all, buying a new car is pricey. If you’re getting an auto loan to pay for the purchase, you’ll probably borrow more money than if you were buying a used car and end up paying more interest over time. New cars are more expensive to insure than used cars because of their higher replacement prices. There is also the fear of depreciation which impacts the resale value of a car. Overall these factors mean that a new vehicle will cost more over time.

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Every buyer of a vehicle has a set criteria that they take into consideration. Accordingly, you may be able to buy new, or certified pre-owned cars. Everything depends on the factors the buyer uses to make their decision. Each category has advantages and disadvantages of its own, which may finally determine which car should be bought. A certified pre-owned car is a far better option if you’re shopping for a used car though.