Friday, July 5, 2013

Buying a used vehicle can be very confusing for consumers, particularly for first-time buyers. There are now multiple classifications of used cars and the warranties that cover them.

Certified Pre-Owned

    Certified Pre-Owned, or CPO, is a type of used vehicle that has undergone repairs, refurbishing and inspection by either the manufacturer or an approved franchised dealership.

Extended Warranty

    An extended warranty is a guarantee that protects any used vehicle---not just CPOs--- for which a consumer chooses to purchase the warranty.

Certified Pre-Owned vs. Extended Warranty

    A CPO typically undergoes extensive inspection and restoration, so the vehicle itself is likely in better condition than a non-certified used vehicle. An extended warranty simply protects the consumer if the vehicle exhibits certain flaws, defects or problems that need repair.

Benefits of a CPO

    A CPO is typically a newer vehicle, and any issues that it previously exhibited are repaired prior to the vehicle's resale. Market resale values for CPOs are also historically higher than those of their non-certified counterparts.

Benefits of an Extended Warranty

    An extended warranty covers any vehicle for which you purchase it, including CPOs. It protects you in the event the vehicle later exhibits issues and can save you money if the vehicle for which you purchase the warranty turns out to be problematic.

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