finding a vehicle for a growing family

Certified pre-owned (CPO) vehicles offer a good combination of new car features at used car prices. Before you start dealer hopping to find the certified pre-owned car of your dreams, here are three things you need to know about these vehicles to help you make the best car-buying decision possible.

There are Two Types of Certification

The first thing you should know is there are actually two types of certified pre-owned programs, and each type offers its own set of benefits and disadvantages. The first type of certified program is one offered through the dealership. Essentially, the dealer takes on the responsibility of thoroughly inspecting used vehicles according to a checklist the company developed.

Typically the dealership examines all the major systems to make sure they're working properly and makes any necessary repairs to ensure the vehicles meet the minimum standard set by the company. Additionally, many dealerships will include short-term limited warranties with the vehicles to cover any problems they may have missed.

While dealer certification typically doesn't increase the price, they are generally not honored by the manufacturer. This means you are limited to obtaining warranty repairs at the dealership where you purchased the vehicle.

The other type of certification is though the manufacturer. The manufacturer draws up the certification checklist dealers must use when inspecting used vehicles to ensure they meet the minimum quality set by the brand.

Since the certification is supported by the manufacturer, you can obtain warranty repairs at any dealership that participates in the program. Most offer additional benefits such as roadside assistance and maintenance plans. However, factory certification increases the price of the vehicle, though the exact amount varies depending on the brand. Factory certification may increase the price of a budget vehicle by only a few hundred dollars but boost the price of a luxury vehicle by thousands.

Factory Certified Pre-Owned Programs Vary by Manufacturer

CPO programs are as diverse as the companies that offer them. Some require an unbelievably extensive examination, while others aren't so in-depth. For instance, Audi requires a 300-point inspection while Chrysler only requires a 125-point inspection.

Other differences that may exist between manufacturer CPO programs include:

• The length of time the warranty covers the vehicle
• The type of things the warranty covers
• The age/mileage limit of vehicles accepted into the factory CPO program
• Extraneous benefits like roadside assistance, vehicle history reports, and maintenance plans
• Special financing options

It's important to understand this because the brand of pre-owned vehicle you purchase will have a big impact on the type of support and service you receive for the car once it's in your possession. So you'll need to factor in the specifics of the CPO program into your purchase decision. For instance, Audi's warranty has an $85 deductible. You need to be prepared to cover that amount if you ever need to take the vehicle into the dealership for a warranty repair.

They're Still Used Vehicles

There's a strange perception that certified pre-owned vehicles are just slightly used new cars. While there may be the odd CPO that's only been driven a few hundred miles, most certified pre-owned vehicles were thoroughly used and enjoyed by their previous owners. This may means high mileage and the associated wear and tear.

The certification is a sort of guarantee the vehicle meets a higher standard of quality than non-certified used cars. However, you still have to deal with associated ramifications of buying a used vehicle. For instance, transmissions will run for about 100,000 miles when maintained. If your CPO already has 60,000 miles on it, you only have about 40,000 more miles of driving time left before you'll need to replace this part.

Therefore, you want to put the same amount of thought and care into selecting the right certified pre-owned vehicle for you that you would a non-certified vehicle.

For more information about CPOs or to purchase a vehicle, contact a dealer near you.