What Is a Certified Pre-Owned Car?

Cheaper than a new car, more expensive than buying used

Simplify your search

Compare plans tailored to your car & budget.

Join over 8,000 people who received a free, no obligation quote in the last 30 days.
    Enter details in under 3 minutes
    +1 more
    hands holding car key and clip board with paper and pen

    Certified pre-owned (CPO) cars are used vehicles that a dealer inspects, brings back to a like-new standard and provides warranty coverage for. They typically have higher prices than conventional used cars but lower prices than new cars. Below, learn more about how CPO cars work and whether this option might be right for you.


    Key insights

    Certified pre-owned vehicles are used vehicles that have passed a dealer inspection and include a warranty.

    Jump to insight

    CPO cars typically come with other benefits like roadside assistance, trip interruption insurance or rental car reimbursements.

    Jump to insight

    CPO vehicles can still have issues after purchase, so a car being certified doesn’t necessarily mean it will be in perfect condition.

    Jump to insight

    How certified pre-owned cars work

    Certified pre-owned cars are used cars that a dealership brings back to a like-new standard. In order to qualify as certified pre-owned, a vehicle must pass a rigorous set of qualifications set by the manufacturer. In return for meeting these standards, a CPO vehicle usually comes with a short warranty.

    Qualifications vary by automaker, but CPO vehicles generally need to:

    • Be under five or six years old
    • Have fewer than 60,000 or 80,000 miles
    • Pass a rigorous inspection

    In order to qualify as certified pre-owned, a used car must undergo a rigorous quality inspection conducted by a trained technician. This inspection should include a detailed look at the engine, transmission, brakes, tires, interior, infotainment system and other components. As a result, CPO vehicles tend to be in better shape than typical used cars.

    Also, CPO vehicles are typically more expensive than non-certified used cars, but they’re much cheaper than buying a new car.

    Benefits of certified pre-owned vehicles

    You’ll typically get perks when you buy a CPO vehicle, including warranty coverage.

    Warranty

    The typical CPO vehicle includes a 1-year/12,000-mile bumper-to-bumper warranty that either starts on the date you purchase the car or tacks onto the end of whatever factory warranty you have remaining.

    For example, say you buy a CPO vehicle that’s two years old with 20,000 miles. If the vehicle comes with a 3-year/36,000-mile bumper-to-bumper factory warranty, you’ll still have one year or 16,000 miles left of the factory warranty. If your CPO vehicle comes with an additional 1-year/12,000-mile warranty, your remaining protection will be extended to two years or 28,000 miles from the date of purchase.

    » MORE: Best CPO Warranties

    Other benefits

    Some other CPO benefits typically include:

    • Roadside assistance: You’ll typically get 24/7 roadside assistance for the duration of your warranty, including flat-tire assistance, lockout services, battery jump-starts, fuel deliveries and emergency towing to the nearest dealership.
    • Trip interruption insurance: This helps cover the cost of meals and lodging if your vehicle breaks down more than 100 miles from home.
    • Rental car reimbursement: You’ll typically get a certain amount per day to help cover the cost of a rental car if your dealer doesn’t have a loaner while your vehicle is getting repaired.
    • Special CPO financing rates: Qualified borrowers may get low rates on CPO cars.
    • Various trial memberships: Some CPO cars come with trial memberships of SiriusXM or other services.

    Pros and cons of buying certified pre-owned

    We’ve broken down the pros and cons of buying CPO vehicles below.

    Pros

    • Cheaper than buying a new car
    • Thorough inspection completed
    • Extra warranty coverage
    • Other benefits, like roadside assistance or special financing rates

    Cons

    • More expensive than buying a used car
    • Usually a more limited CPO selection available
    • Some CPO warranties may cover fewer parts

    Are CPO vehicles more reliable than used cars?

    Even though CPO vehicles have to pass an inspection, dealer service technicians can still make human mistakes.

    “All of the certified vehicles may be inspected by a professional technician but most are not as thoroughly inspected as they should be,” said Eric Hamilton, owner of Whyte Knyte Inspection Services. “Whyte Knyte Inspection Services has inspected CPO vehicles in the past and none have passed with 100%.”

    Plus, being certified doesn’t necessarily mean a vehicle was built well in the first place, and your CPO warranty won’t cover you forever.

    For instance, D, a reviewer from Georgia, reported a negative experience with their CPO car.

    “I had issues maybe 20 minutes after leaving the lot, and issues ever since. [...] Please tell me why a CPO vehicle still well under original warranty according to [its mileage] would need a new transmission [,] even if you'd had it a year. [...] Even the service tech who worked on it said there's no way this car could have been inspected or passed inspection.”

    While buying CPO may increase your chances of getting a vehicle in good condition, a pre-owned vehicle from an automaker known for reliability may very well outlast a CPO vehicle from a less reliable brand.

    Should you buy a certified pre-owned car?

    Buying a certified pre-owned car can be worth considering if you want to combine the benefits of buying a new car with the savings of buying a used car.

    Getting a CPO vehicle can make sense if:

    • The vehicle you’re considering has below-average expected reliability.
    • The CPO warranty offers at least one year or 12,000 miles of bumper-to-bumper coverage.
    • The dealer is only charging about $1,000 more (or less) to buy a CPO car instead of a used car.

    Ultimately, the value of certification often comes down to the quality and value of a specific automaker’s CPO program, and a certified vehicle that fails the above test can still be a good choice if it matches the other criteria you’re looking for.

    » MORE: How To Find the Right Car for Your Budget

    Learn more about certified pre-owned vehicles

    Looking for a specific make of pre-owned vehicles? Check out our detailed guides for each car brand.

    Simplify your search

    Compare plans tailored to your car & budget.

      FAQ

      Is certified pre-owned worth the cost?

      Buying CPO is more likely to be worth it if you’re buying a vehicle known for having below-average reliability, the price is within $1,000 of a noncertified counterpart and you’re getting at least one year of bumper-to-bumper protection.

      Can I negotiate the price of a CPO car?

      Yes, you can negotiate CPO car prices just like you can with a new car. This process may be easier with CPO cars as dealers may be able to be more flexible on price. Before negotiating on the price, research the car’s market value and compare it to other similar CPO cars.

      Does certified pre-owned mean no accidents?

      Certified pre-owned vehicles need to pass a thorough inspection. This includes checking the vehicle’s history to ensure it doesn’t have a history of major accidents or damage.

      What are some alternatives to buying CPO?

      If you’re interested in a CPO car because of the quality assurance and extra warranty coverage you’ll get, it can be helpful to instead buy a used car and schedule a pre-purchase inspection. You can hire an independent mechanic to conduct an inspection, provide a detailed report and discuss their findings with you. As for warranty coverage, you could purchase an extended auto warranty to get longer coverage than what CPOs offer.

      » COMPARE: CPO Warranties vs. Extended Warranties


      Article sources

      ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:

      1. Federal Trade Commission, “Buying a Used Car From a Dealer.” Accessed Dec. 24, 2025.
      Did you find this article helpful? |
      Share this article