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CPO Definition

A certified pre-owned (CPO) vehicle is a used car that has undergone a comprehensive inspection and certification at a dealership before being offered for sale. CPO cars include extensions of factory warranty coverage.

  1. Features

    • CPO vehicles are inspected and reconditioned as necessary at the dealership offering the car for sale. After being certified, the dealership pays the manufacturer to extend the factory warranty coverage.

    Benefits

    • CPO vehicles provide peace of mind for used-car buyers. Rather than being faced with an as-is purchase and the prospect of paying out of pocket for repairs, the CPO warranty is honored at all dealerships that sell a particular brand.

    Identification

    • A CPO vehicle can be identified online or on the lot by the manufacturer-certified logo included on the used car window sticker. The used car buyer's guide must also highlight the extent of the warranty.

    Features

    • While most new car warranties are transferred to subsequent owners, the CPO warranty not only includes the original coverage, but also an extension of warranties for up to 100,000 total vehicle miles.

    Potential

    • A CPO warranty can cover thousands of dollars worth of repairs for which an owner would otherwise be individually responsible. This is why CPO programs are very popular with luxury brands like BMW and Mercedes-Benz, which have high repair costs.

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