Certified Pre-Owned Car or Non-Certified Car - Which is Better?

Planning to buy a used car? Did you know there are certified pre-owned (CPO) and non-certified used cars? 

So, what sets a CPO car apart from a regular used one? While both fall under the "used vehicles" category, certified pre-owned cars have to meet specific criteria and standards to earn the "certified pre-owned" designation. 

Certified pre-owned cars provide a balanced and reliable choice for buyers who want something more affordable than a brand-new car but with a higher level of dependability compared to non-certified used cars.

Let’s dive deeper into CPO and non-CPO cars to see which is better.

What are certified pre-owned cars?

Every certified pre-owned (CPO) vehicle needs to satisfy specific standards to meet eligibility requirements. To qualify, a CPO car must adhere to certain conditions, including its age (typically no more than four years old), mileage limits, and other specified criteria.

A CPO vehicle has undergone a meticulous inspection and safety evaluation. These programs often include extended warranties and may offer extra perks such as special financing and access to a roadside assistance program. 

CPO vehicle programs are available through car manufacturers all across Canada, offering you the opportunity to own a used vehicle with many of the advantages of purchasing a brand-new one. 

Apart from manufacturer-operated CPO programs, you can also find certified cars at independent dealerships. These dealerships have their own criteria for designating cars as certified and may provide additional benefits to buyers.

Difference between certified pre-owned and non-certified cars

Certified pre-owned cars

• Inspection: To meet the requirements of a manufacturer's certified pre-owned program, a vehicle must be relatively new, well-maintained, and fall within a specific mileage range. Once these criteria are met, the vehicle undergoes a comprehensive inspection of its various systems and components, with any necessary repairs or maintenance carried out. The multi-point inspection covers aspects like exterior and interior condition, tires, brakes, exhaust system, suspension, and more.
• Warranty: Upon receiving the certified pre-owned designation, the vehicle is backed by a warranty from its original manufacturer. This warranty covers potential issues that may arise during the commute.
• Financing: In some cases, certified pre-owned vehicles can qualify for lower financing rates compared to non-certified vehicles, leading to cost savings for buyers. Factors such as the vehicle's age, condition, and mileage make certified pre-owned vehicles less risky for financing, resulting in more favorable rates and terms for the purchaser.

Non-certified pre-owned cars

• Inspection: Non-certified pre-owned vehicles may or may not have undergone an inspection. Since these models lack the certified designation, you have the option to arrange for a private inspection before making a purchase. Typically, non-CPO vehicles come with a lower price tag compared to their CPO counterparts.
• Warranty: These non-certified vehicles will typically only carry the remaining period of their original bumper-to-bumper or limited powertrain warranty coverage, or you can choose to invest in an extended warranty. Various sources offer extended warranties, including individual dealerships and third-party providers. However, it's important to note that some models may not come with any warranty, placing the responsibility for vehicle maintenance on the buyer.
• Financing: When it comes to financing a non-certified pre-owned vehicle, you can anticipate higher interest rates compared to those for new vehicles. The interest rate you receive is also influenced by your current financial situation, and the source you choose for financing plays a role as well. Therefore, it's advisable to select a dealership that specializes in used vehicles to access the most favorable financing options.
  

Financing a CPO vehicle

CPO cars come with a higher price tag, but this extra cost is not without its advantages. When you buy a used vehicle privately, there's a risk of encountering unexpected repair bills after just a few weeks or months of ownership. On the contrary, when you invest in a CPO vehicle, although you pay more upfront, you can drive with peace of mind, knowing that you won't have to worry about repairs for a while.

In some cases, certified pre-owned vehicles may even qualify for lower financing rates compared to non-certified vehicles, providing customers with additional savings during their purchase. Factors such as the vehicle's age, condition, and mileage contribute to making certified pre-owned vehicles less risky for financing, resulting in more favorable rates and terms for the buyer. Since certified pre-owned cars are exclusively available through dealerships, you have the convenience of applying for financing right at the dealership.

Conversely, when financing a non-certified pre-owned vehicle, you can anticipate higher interest rates compared to those offered for new vehicles. Your current financial situation also plays a role in determining the interest rate charged. Furthermore, the source you choose for financing can impact the rate, so it's wise to select a dealership specializing in used vehicles to access the best financing options.

Ultimately, the choice between CPO and non-certified used cars depends on your budget, risk tolerance, and desire for peace of mind. Consider your priorities carefully and select the option that aligns best with your needs and preferences.