You may have noticed that many vehicles formerly known as "used" are now termed "Certified Pre-Owned" or "CPO." These programs originated in the Luxury category due to the high rate of off-lease vehicles populating the market in the past five years. Because these vehicles were in such great shape and had lower mileage, manufacturers took a serious interest in ensuring that they delivered a positive purchase and ownership. As a result, they began to "refurbish" the vehicles and add warranties and special financing. This trend has been growing year by year and is quickly spreading to the majority of manufacturers who market their cars in the U.S.
CPO vehicles are selling at a growth rate of around 21% per year. The interesting thing about this is that only 25% of car buyers started out intending to buy a CPO vehicle. The majority of CPO buyers end up purchasing these vehicles as either a lower priced alternative to a new car, or because the used vehicle they found just happened to be a CPO.
Probably the best argument for purchasing a Certified Pre-Owned vehicle is that most new vehicles depreciate at a rate of approximately 20% per year. With this in mind, the additional cost involved in the inspection, refurbishment and warranty may still add up to a smart purchase. In any case, Certified Pre Owned vehicles are here to stay and for many have provided an excellent alternative to new car buying.
CPO vehicles are selling at a growth rate of around 21% per year. The interesting thing about this is that only 25% of car buyers started out intending to buy a CPO vehicle. The majority of CPO buyers end up purchasing these vehicles as either a lower priced alternative to a new car, or because the used vehicle they found just happened to be a CPO.
Probably the best argument for purchasing a Certified Pre-Owned vehicle is that most new vehicles depreciate at a rate of approximately 20% per year. With this in mind, the additional cost involved in the inspection, refurbishment and warranty may still add up to a smart purchase. In any case, Certified Pre Owned vehicles are here to stay and for many have provided an excellent alternative to new car buying.