Certified Used Car Prices

A Guide to Certified Pre-Owned Cars

When deciding to buy a used car, Certified Pre-Owned cars can be a great way to save money while obtaining a quality vehicle.

What is a Certified Pre-Owned Car? 

Certified Pre-Owned cars (also known as CPO) are newer model used cars with low mileage that are accident-free and refurbished to manufacturer or dealer standards.

Dealerships offering these cars provide extra reassurance: these vehicles have passed detailed, point-by-point inspections and include additional warranty coverage. Some dealers also include roadside assistance and other benefits as part of their Certified Pre-Owned programs.

Are “Certified Pre-Owned” and “CPO” the Same? 

Yes. CPO stands for Certified Pre-Owned. The two terms are synonymous.

Are All Used Cars Certified Pre-Owned?  

No. Not all used cars are Certified Pre-Owned. Dealerships offer certified cars but typically offer used cars that aren’t certified as well. Also, if you’re buying a car from a private owner, the car is not considered certified.

Are Certified Pre-Owned Cars Worth It?

Most people think so. A sense of security is the main attraction of purchasing a certified pre-owned model. Like new car buyers, certified used car buyers don’t need to worry about breakdowns and costly repairs. Although it's secondhand, the certified used vehicle is a late-model car fully inspected prior to certification.

Nearly all manufacturers offer a certification program, backed by the factory. In some cases, a dealer or other organization may have their own individual certification programs, but standards can vary widely with these. Some include a vehicle history report, whether from AutoCheck or Carfax. Vehicle history reports check vehicle identification numbers (or VINs) for details on prior ownership including any past accidents.

Another reason to buy a Certified Pre-Owned car is vehicle financing. Obtaining financing for a CPO car is easier than for a used car that’s not certified. In fact, many certified cars qualify for new-car financing, with rates that tend to be lower than used car loan rates.

Depreciation on a certified vehicle is also not as steep as a new car since the car has already had its initial (and largest) period of deprecation. Therefore, it loses its value much more slowly, and you as a buyer can recoup a larger portion of the purchase price if you sell it later on.

When buying a Certified Pre-Owned car be sure to ask specific questions about the length of the warranty and what is covered and what is not.

Does a Certified Pre-Owned Car Cost More?

Usually, yes. By repairing any problems with the vehicles and then certifying their condition, car dealerships can sell pre-owned cars at premium prices. Therefore, used cars that are certified pre-owned by dealerships often cost more than when a private seller or a dealer offers a comparable, non-certified car.

Do I Need a Certified Pre-Owned Car or a Warranty? 

Both options have merit. If you’re deciding between certified pre-owned and used cars, it could come down to a warranty offered. Check the warranties that dealerships offer on both types and compare before making a final decision.

How Do I Choose the Best Certified Pre-Owned Car?  

To choose the best used car that’s pre-owned and certified by a manufacturer or dealer, be sure to shop around.

Use the Kelley Blue Book Car Prices tool to simplify your search. This tool helps you search by year, make and model for a Certified Pre-Owned car, then let’s you compare it against similar new & used cars. The Car Prices tool is also a great place to check out expert and consumer reviews.

Can I Negotiate the Price on Certified Pre-Owned Cars?

Sometimes, but don’t expect big bargains. However, just like any dealer asking price, deals are negotiable. So, go ahead and negotiate the price of your Certified Pre-Owned car.

If you’re trading in a car, leverage the trade-in to help reduce the price further on your Certified Pre-Owned vehicle.

How to Buy a Certified Pre-Owned Car?

Shopping for a Certified Pre-Owned car is not like buying a new car. No two Certified Pre-Owned cars offer the exact same mileage or condition. When buying a Certified Pre-Owned vehicle, it’s possible you’ll need to weigh the pros and cons of two otherwise identical models.

That said, Certified Pre-Owned cars all meet certain conditions and mileage requirements. Also, most CPO vehicles come with a warranty to give you added peace of mind.

Certified Pre-Owned Research Tips

Though Certified Pre-Owned (CPO) cars can require a bit more research than buying a new car, these types of previously owned vehicles present fewer pitfalls than buying used.

To get started, begin with a particular model and a couple of backup choices. It’s a good idea to be flexible on the model because that will provide you with a broader array of choices.

Next, study the cars and the programs. Many manufacturer programs for Certified Pre-Owned vehicles differ, whether it’s the warranty or other perks thrown in to entice buyers.

Don’t forget to request an AutoCheck or similar vehicle history report, which provides details on the car’s previous ownership history and any past accidents. Many dealers now include a history report for their Certified Pre-Owned and other used cars, but if they don’t, you can always ask!

Once you're up to speed on your desired cars and their respective programs, you can find 1000s of Certified Pre-Owned vehicles for sale  at KBB.com.

When It’s Time to Buy, Remember These Tips

When you eventually find the right Certified Pre-Owned car and decide it’s time to visit the dealer for a test drive, remember that prices on CPO cars are negotiable, just like any car sold at a dealership.

Before making your final decision, look into the return or exchange policy. Then, check into any special financing – ideally, comparable to what's offered on a new car – and weigh that against other financing options, such as at a bank or credit union. It’s a good idea to know and understand your credit score before you begin to negotiate the price because the better your credit the more leverage you may have throughout the deal. Check your credit with this tool on our site that helps you know how yours stacks up.

Finally, when buying a Certified Pre-Owned car, you want to make sure to carry car insurance for the new vehicle before driving it off the lot.

Once you make the decision to buy a Certified Pre-Owned car, take pride in knowing you got the best of both worlds: the peace of mind of a new car with the lower price of a used car. So it’s no wonder that a lot of savvy shoppers buy nothing but CPO cars time after time.