What Are Certified Pre-Owned Vehicles?

A certified pre-owned, or CPO, vehicle is a used car or truck deemed to be in good condition and protected by an extended factory-supported warranty. Typically, a CPO vehicle has a clean record free of previous accidents, has received a thorough inspection, and, because it is as good as a used vehicle can be, commands a premium over other non-CPO vehicles of the same year with the same mileage.


The Benefits of Buying a Certified Pre-Owned Vehicle

All things considered equal, it costs more to buy a certified pre-owned (CPO) vehicle than it does to buy the same used vehicle when it is not part of a CPO program. However, while non-CPO vehicles are typically less expensive, they are not equal to CPO vehicles. Here's why:

Choosing the Right CPO Program

When buying a certified pre-owned (CPO) vehicle, the best course of action is to purchase the type of vehicle that best suits your needs and preferences. Once you've narrowed choices down, however, you can compare the used-vehicle certification programs offered by the different auto manufacturers to determine which one gives you the best bang for your buck. Below, we take a closer look at the various factors to consider when shopping for a certified pre-owned vehicle.

Certified Pre-Owned Programs vs. Extended Service Contracts

There are two primary ways for used-vehicle dealers to provide peace of mind to their customers. The first is through a certified pre-owned (CPO) program backed by the auto manufacturer. The second is through an extended warranty or service contract backed by a third-party provider.

On the surface, it might seem as though actively choosing between one or the other doesn't really matter, as both provide a certain level of protection in the event that the used car requires repair shortly after purchase. However, there are differences between the two approaches.

Shoppers Consume Information on OEM Websites with Multiple Devices

In the past 6 months, there has been a major shift in the way new-vehicle shoppers are consuming information found on the Internet, according to results in Wave 2 of our semi-annual 2012 Manufacturer Website Evaluation Study (MWES). We find that a higher percentage of new-vehicle shoppers now own tablets compared with January when Wave 1 of the 2012 study was released (35% vs. 20%, respectively).

U.S. Light-Vehicle Sales Soften Only Slightly due to Lower Fleets in July

Car and light-truck sales in the U.S. reached 1.152 million units in July, which is an increase of 18% from July last year on a selling-day-adjusted basis.* That translates to a 14.1 million-unit seasonally adjusted annual selling rate (SAAR), and is slightly lower than June's 14.3 million SAAR (recently adjusted with the revised U.S. Bureau of Economic Analysis (BEA) seasonal factors), but is much stronger than the 12.2 million-unit pace in July 2011, according to data collected and analyzed by J.D.

2012 Japan Investor Satisfaction Study

TOKYO: 3 August 2012 — Although overall customer satisfaction with the investment services of banks and securities companies is low, financial institutions have the opportunity to increase investments of individual investors by focusing on satisfaction improvements, according to the J.D. Power Asia Pacific 2012 Japan Investor Satisfaction StudySM released today.


2012 Manufacturer Website Evaluation Study (MWES)--Wave 2

WESTLAKE VILLAGE, Calif.: 1 August 2012 — Tablet proliferation requires that automotive manufacturers consider how they will meet the needs of both desktop and tablet users. Many manufacturers integrate tablet-friendly layouts on their desktop sites to meet the needs of both groups of new-vehicle shoppers, contributing to the increase in overall satisfaction with manufacturer websites, according to the J.D. Power and Associates 2012 Manufacturer Website Evaluation StudySM (MWES)--Wave 2 released today.


Easier Credit Primes July U.S. Double-Digit Retail Sales Rise

Retail sales in the U.S. auto market got off to a fast start in July. While they've slowed as the month has progressed, retail sales in the first 16 selling days are still up 15.1% from a year ago, and July could post the second-strongest retail sales growth rate for the year, according to a monthly sales update developed by J.D. Power's Power Information Network(R) (PIN) and LMC Automotive.* Fleet sales are expected to be slightly lower than in other months of the year.

2012 Manufacturer Website Evaluation Study (MWES) -- Wave 2 Results

During the first 6 months of 2012, online new-vehicle shopper satisfaction with the usefulness of automotive manufacturers' Websites rose from the previous 6 months, according to the recently released J.D. Power and Associates 2012 Manufacturer Website Evaluation StudySM (MWES)--Wave 2.


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