Auto Insurance And Cpo Warranties: What's Covered?

Certified pre-owned (CPO) vehicles are used vehicles that have been certified to be in top condition by the manufacturer and are backed by a factory warranty. CPO vehicles typically undergo a comprehensive multi-point inspection and are often just a few years old with low mileage. The warranty coverage offered by CPO programs varies by manufacturer and may include bumper-to-bumper, powertrain, and roadside assistance coverage. While CPO vehicles offer the advantage of a warranty, they are generally more expensive than equivalent non-CPO vehicles. Auto insurance policies typically cover unexpected repairs and breakdowns, so it is important to understand the specific coverage provided by both the CPO warranty and your auto insurance policy to determine if additional coverage is needed.

Certified pre-owned vehicles are typically more expensive than equivalent non-CPO vehicles

The price difference between CPO and non-CPO vehicles can range from a few hundred to a few thousand dollars. This premium is essentially a form of insurance against breakdowns, as the manufacturer has agreed to repair any issues that arise during the warranty period. In addition to the extended warranty, CPO vehicles often include additional benefits such as roadside assistance, rental car reimbursement, and satellite radio subscriptions. These perks further contribute to the higher cost of CPO vehicles.

It's important to note that CPO programs vary widely among manufacturers, and there is no standard CPO program or warranty. Each carmaker sets its own terms, eligibility requirements, and coverage limits. When considering a CPO vehicle, it's crucial to carefully review the specific terms and conditions of the program, including the warranty details and any additional benefits offered.

While CPO vehicles come at a higher price, they offer several advantages. Firstly, they provide peace of mind and lower the risk of unexpected repairs. Secondly, CPO vehicles tend to be newer models with low mileage, ensuring that buyers get a like-new car without paying the full price of a new vehicle. Lastly, CPO programs often offer financing and leasing options, making it easier for buyers to afford their dream car.

In summary, certified pre-owned vehicles are more expensive than their non-CPO counterparts due to the added benefits and peace of mind they offer. The higher cost is justified by the extensive inspection, repairs, and manufacturer-backed warranty that come with CPO vehicles. When considering a CPO car, it's important to weigh the benefits against the higher price tag and make an informed decision based on individual needs and preferences.

CPO vehicles are covered by a manufacturer-backed extended warranty

CPO vehicles are backed by a manufacturer's warranty, which provides added protection and peace of mind for buyers. This warranty is a significant advantage of choosing a CPO vehicle over a standard used car.

The manufacturer's warranty on a CPO vehicle typically includes both a bumper-to-bumper warranty and a powertrain warranty. The bumper-to-bumper warranty covers most issues, such as electronics, HVAC systems, navigation, audio, and sometimes even the suspension. On the other hand, the powertrain warranty covers the engine, transmission, and other major mechanical components. These warranties provide comprehensive protection for the CPO vehicle, ensuring that any issues will be addressed at no additional cost to the owner.

The duration of CPO warranties varies depending on the manufacturer. Some CPO vehicles are covered for multiple years and thousands of miles, providing long-term peace of mind. For example, powertrain warranties can extend up to six or seven years from the date of purchase and up to 100,000 miles. Bumper-to-bumper warranties typically cover the vehicle for a shorter period, such as the first 12 months and 12,000 miles. However, it's important to note that each carmaker sets its own terms, and there is no standard CPO program or warranty. As such, it is crucial to carefully review the specific terms and conditions of the warranty before purchasing a CPO vehicle.

In addition to the extended warranty, CPO vehicles undergo a comprehensive inspection and reconditioning process. Technicians thoroughly inspect over 100 maintenance areas, and any issues discovered are repaired. This process ensures that CPO vehicles are in top condition and helps to maintain the high quality associated with the manufacturer's brand. The combination of the manufacturer's warranty and the rigorous inspection process provides buyers with confidence and assurance that they are purchasing a reliable vehicle.

Furthermore, CPO vehicles often come with additional perks and benefits. These may include roadside assistance, free maintenance, satellite radio subscriptions, and trip interruption coverage. Some manufacturers even offer special incentives, such as a free guided tour of the factory. These extra features enhance the overall ownership experience and provide added value to the CPO vehicle purchase.

CPO vehicles are given a thorough inspection

Certified pre-owned (CPO) vehicles are given a thorough inspection before they are put up for sale. This inspection is carried out by factory-trained mechanics or technicians and covers a wide range of areas to ensure the vehicle is in good mechanical condition.

The inspection process typically involves checking more than 100 items, including the engine, transmission, tires, battery, cosmetic appearance, and more. Any issues found are addressed, and if they cannot be resolved, the vehicle is not certified. Some manufacturers, like Audi, have even more extensive inspection processes, with over 300 points to check.

The inspection also includes a review of the vehicle's history, such as whether it has been in any accidents, floods, or has any other undesirable events in its past. This information is often backed up by third-party reports like Carfax, which provide a detailed history of the vehicle.

In addition to the mechanical and cosmetic aspects, the inspection also covers the vehicle's age, mileage, and overall condition. Most CPO programs have specific criteria for the age and mileage of eligible vehicles. For example, Volkswagen's CPO program accepts vehicles no more than 5 model years old with less than 75,000 miles on the odometer.

The comprehensive inspection process ensures that CPO vehicles meet the high standards set by the manufacturer and provides potential buyers with peace of mind, knowing that the vehicle they are purchasing is in good condition and has been thoroughly vetted.

CPO vehicles are sold by franchised new-car dealers

CPO vehicles are usually priced higher than non-CPO used cars. This is because they are considered the best used cars available, having been reconditioned to like-new condition, backed by a manufacturer's warranty, and offering additional benefits. These benefits can include low-interest financing, roadside assistance, and rental car reimbursement.

CPO vehicles are also more expensive than non-CPO used cars because of the comprehensive dealer inspection, repairs or maintenance work, and the longer warranty coverage. The higher price is reflected in the higher average advertised prices for CPO vehicles.

The cardinal rule is that only a manufacturer's franchised dealer can sell that manufacturer's CPO vehicles. This means that independent used car lots cannot offer manufacturer-certified pre-owned vehicles.

When buying a CPO vehicle, it is important to know if the car is certified by the manufacturer or the dealer, as their certification requirements may differ. If it is certified by the manufacturer, you can have your vehicle serviced at dealership locations nationwide. It is also important to ask for the certification checklist and a vehicle repair and maintenance history report.

It is worth noting that CPO vehicles are not the same as dealer-certified programs, where vehicles are promoted as certified pre-owned but have typically not been inspected by anyone outside the dealership.

CPO vehicles come with extra benefits such as roadside assistance

Certified pre-owned (CPO) vehicles come with a host of benefits, one of which is often roadside assistance. This is a valuable feature, providing peace of mind for drivers who find themselves in need of assistance due to unexpected vehicle issues.

Roadside assistance programs vary across different automakers, but they generally include similar services. For example, Volkswagen offers complimentary roadside assistance for new and certified pre-owned vehicles for three years or 36,000 miles, with an additional two years of coverage for certified vehicles. This includes towing services, fuel delivery, jump-starts, and lock-out services. Lincoln offers 24-hour roadside assistance 365 days a year for its CPO vehicles, which includes fuel delivery, unlocking services, troubleshooting, and towing to their service centre.

Other automakers, such as BMW, Ford, Honda, Hyundai, Kia, Mercedes-Benz, Tesla, and Toyota, also offer roadside assistance for their CPO vehicles, with varying levels of coverage and duration. These programs typically include services such as towing, jump-starts, fuel delivery, flat-tire repairs, and trip interruption reimbursement.

In addition to roadside assistance, CPO vehicles offer other benefits such as extended warranties, vehicle inspections, and special perks like satellite radio subscriptions. These benefits provide added value and peace of mind for buyers, making CPO vehicles an attractive option for those seeking a reliable used car with comprehensive support.

Frequently asked questions