The results of a study from NADA Used Car Guide show that consumers aren't very familiar with certified pre-owned vehicles. Manufacturer-certified vehicles offer some of the best of both new and used vehicle purchase options. This may just be the car-buying option that best suits you.
The Results of the Survey
NADA Used Car Guide recently released the results of their 2016 Certified Pre-Owned Consumer survey. The goal was to measure consumer awareness of and interest in certified pre-owned (CPO) programs. They found that people of all age groups aren't very familiar with CPO vehicles.
- 50% of 18-to-34-year-old respondents said they were "slightly" or "not at all" familiar with CPO programs.
- 40-44% of respondents aged 35-to-75 and older reported similar low levels of familiarity.
Furthermore, over one third of all male respondents indicated they were "slightly" or "not at all" familiar with CPO programs. Meanwhile, nearly 60% of all women surveyed expressed the same sentiment.
While awareness was clearly lacking, there still seems to be some consumer interest. 27% said they were willing to consider a CPO option alongside either a new or used vehicle. However, 31% also stated that they weren't willing to pay any more for a CPO vehicle.
We've got bad news for those people: a CPO vehicle is going to cost slightly more than a non-certified used version. According to NADA Used Car Guide data, 68% of all CPO premiums are $800 to $1,800. So, the great majority of CPO vehicles cost marginally more than non-certified versions. However, there is a reason for this and it's actually for the consumer's benefit.
The Benefits of Certified Pre-Owned Vehicles
To start, let's define exactly what CPO vehicles are. Manufacturer CPO cars are trade-ins, lease turn-ins, or auction-purchased vehicles that meet the automaker's requirements to qualify for an inspection program. Usually, that means they are less than five years old and have less than a certain number of miles on the odometer.
These cars are put through an inspection and refurbishment process outlined by the manufacturer. Then the dealer is able to sell them as manufacturer-certified cars backed by factory service contracts.
So, because of the inspection, refurbishment, and service contract, these cars are more expensive than "regular" used vehicles. However, it can be said with certainty that manufacturer CPO vehicles are among the highest-quality used cars around.
Manufacturer CPO vehicles come with a lot of benefits that make them more appealing than their non-certified counterparts:
- You know only vehicles in the best condition that meet certain age and mileage requirements qualify to be certified. There is added peace of mind knowing they have passed a thorough inspection.
- You get to avoid the steep initial drop in depreciation new vehicles experience.
- All CPO cars come with some kind of extended warranty. Oftentimes, coverage includes other great perks like roadside assistance.
Manufacturer-certified vehicles offer some of the benefits of both new and used vehicles. And while they are slightly more expensive, these benefits tend to outweigh the extra cost.
Bad Credit Auto Financing
Because the risks of buying used are largely eliminated by the certification process, CPO vehicles make great targets for all buyers, especially those with bad credit who can't afford any more financial setbacks.
So if you are dealing with credit issues and are struggling to get approved for auto financing, we have the solution. Auto Credit Express can match you with a dealership in your area that specializes in bad credit auto loans. We can help you next if you simply complete our fast, free and secure online application today.