Buying a used car? Here’s why to choose certified

With so many perks, we can see why! Not only do you get more bang for your buck, but your insurance premiums are also on average lower on a certified pre-owned car. In this article, we’ll discuss why choosing a certified pre-owned car is the way to go when buying a used car and what to look out for.

The key components to look out for in a CPO programme

Certified pre-owned cars, or CPO cars, can be bought from most car dealerships, including new and secondhand, and are a great way to buy a secondhand car that you can rely on. CPO cars come from several sources, such as when a car dealer buys a car at auction, when they take in a car as a trade, and when a leased vehicle is returned.

The dealer will look at the age of the vehicle, its mechanical condition, its kilometres on the clock, and its history. If the car meets the criteria, it will then be given a thorough inspection and reconditioned in order to be sold as a CPO.

When purchasing a CPO car, it’s important to do your due diligence and ensure that you really are getting more bang for your buck and that there will be no hidden issues that arise later down the line that could have been avoided.

Some key components to look out for when opting to buy a car through a CPO programme are:

Age

There is a cut-off limit when it comes to the age of a CPO car that can be sold at a reputable car dealership. This guarantees that the car you buy is not going to konk out in just a few years.

Most car dealerships sell cars that are no more than 6 years old to ensure they last for years to come. If your car is older, we’d suggest getting user reviews and perhaps looking for a newer model so you don’t regret buying the first car you see.

Kilometres on the clock

When buying a CPO car, it’s of vital importance to check the kilometres on the clock; for both the dealer and you. Most car dealerships have a cut-off number of kilometres driven in order to guarantee a working car that’ll stand the test of time.

This means that you’ll be hard-pressed to find a CPO car with more than 150 000kms on the clock, which is a good thing.

Length of warranty

Many CPO programmes offer the remainder of the factory warranty plus an additional year or a certain amount of kilometres covered after the purchase. This is referred to as a “comprehensive” warranty which is similar to a bumper-to-bumper warranty that covers everything but wear items such as tyres and windshield wipers.

The longer the warranty period, the more value for your money you will get, which is why you should look out for car dealerships that offer extended warranties when buying a CPO car. Also, look for warranties that have no deductibles and are transferable to the next owner, just in case you want to sell your car later on.

A certified vehicle inspection report

This is one of the most important components to look out for when buying a CPO car. Without this, there is no guarantee that your “new” car will last until the following year, so be sure to do your due diligence and ask for a copy of a certified report before making a decision on your purchase.

Discounted financing

Many car dealerships offer programmes with low-interest financing terms on select models. Be sure to have a look at all your options before deciding on which vehicle you will purchase.

Bonus incentives

The best CPO programmes include free maintenance, roadside assistance, loaner cars and trip interruption protection. Make sure you look out for any bonuses that come with the programme, and if they’re not stated, be sure to ask if there are any bonus incentives. You never know; you might just be surprised at what a car dealership is willing to offer if you ask.

Benefits of buying a certified pre-owned car

Buying a certified pre-owned car comes with many benefits, and one of the best perks is the fact that it gives you the option of buying a used car with the peace of mind of buying a new car straight off the showroom floor. Below we’ve listed just some of the benefits of buying a CPO car from a reputable car dealership.

Less vehicle depreciation

Vehicle depreciation is par for the course when buying any car, new or used, but secondhand cars do offer less deprivation than new cars. New cars typically depreciate about 20% as soon as they are driven off the showroom floor, and within the first year, most new cars depreciate a further 10%.

This adds up to a total of 30% depreciation within the first year of ownership which is rather on the steep side. Whereas a used car depreciates at a much slower rate.

This is due to the fact that once you are behind the wheel of your new secondhand car, it has already undergone its major depreciation, leaving you with a much slower depreciation rate than a new car. An added bonus is that you’ll have a more stable loan-to-value ratio!

Lower insurance costs

Insurance costs vary based on a number of factors, and typically, insurance for secondhand cars is cheaper than that of a new car. This is due to a key factor that determines how high your insurance premiums will be; the value of the car.

Because secondhand cars are sold at a lower price point, it only makes sense that the insurance premiums reflect this.

More bang for your buck

Stretching the budget for your “new” car is one of the major perks of buying secondhand, especially if you have your eye on a luxury vehicle.

Instead of paying a fortune for the latest model, you can rather buy a few years prior’s model, since cars these days stay relatively the same with a few upgrades, and save major on your car budget. You will be getting a much better deal if you buy secondhand as opposed to buying a brand-new car.

Peace of mind

Buying secondhand these days no longer means taking a risk on your purchase; with access to vehicle history reports, potential buyers can now see details about a car’s previous ownership, accident history, kilometres driven, and more, and be put at ease knowing the full history of the car they are interested in. This changes the game for used cars as they are no longer a liability but rather a better option for those looking for both quality and value.

Final words

When it comes to buying used cars, there are many benefits, and if sourced through a reputable dealer, they are in fact a better option for most. Getting more for less is always ideal, so when asked, “are certified pre-owned cars worth it?” We can confidently say yes. If you have done your due diligence, you will have most likely found a bargain!