On the face of it, the CPO option sounds like a win/win situation for buyer and seller. And buying a CPO certainly has its advantages.
May 30, 2006 (Press Release) --
On the face of it, the CPO option sounds like a win/win situation for buyer and seller. And buying a CPO certainly has its advantages. Every educated buyer knows that, while there are some exceptions to the rule, most new cars lose a great deal of their value over the first few years of ownership. But with a CPO car, which can be anywhere from two years old to eight years old in certain cases, the first owner of the vehicle takes the depreciation hit. And looking at CPO options expands your car-buying horizons. Because the car has lowered in value, you can afford more luxury for less money.
“CPOs provide a new category of entry-level vehicle, especially for the luxury auto makers,” explains Tom Kontos, Adesa Corp vice president for industry relations. Car buyers with budgets that would limit them to a BMW 3 series in the new-car world can entertain the possibilities of a two-year-old 5 Series or a four-year-old 7 Series in the CPO realm.
Of course, that would be true with traditional used cars as well. The biggest selling points for consumers who actually purchased a CPO car was the manufacturer’s warranty, followed closely by the manufacturer’s inspection process, according to CNW Marketing/Research.
Both vary a great deal according to manufacturer programs. Each manufacturer places its own age and mileage limits on the cars they will certify. But the savvy CPO shopper should note that luxury car manufacturers are known to be choosier in deciding which cars make the certification cut.
The high-end certified used cars tend to be really, really good. The luxury manufacturers have very strict rules about what gets certified,” says Art Spinella, industry expert with CNW Marketing Research. “Companies like Toyota and Chevy and other more mainstream manufacturers also have rules for certification, but they’re not as stringent, so it’s a little more of a gamble.”
After a vehicle is selected for potential certification, there’s the inspection process. Carmakers are big on touting how many points they check off before a car is certified, but is a 142-point checklist somehow better than a 141-point checklist? Probably not. They all tend to cover the same major areas, with some variation in the details or what signifies a checkpoint.
Source: http://search.msn.com
Posted by Stephanie Overby
“CPOs provide a new category of entry-level vehicle, especially for the luxury auto makers,” explains Tom Kontos, Adesa Corp vice president for industry relations. Car buyers with budgets that would limit them to a BMW 3 series in the new-car world can entertain the possibilities of a two-year-old 5 Series or a four-year-old 7 Series in the CPO realm.
Of course, that would be true with traditional used cars as well. The biggest selling points for consumers who actually purchased a CPO car was the manufacturer’s warranty, followed closely by the manufacturer’s inspection process, according to CNW Marketing/Research.
Both vary a great deal according to manufacturer programs. Each manufacturer places its own age and mileage limits on the cars they will certify. But the savvy CPO shopper should note that luxury car manufacturers are known to be choosier in deciding which cars make the certification cut.
The high-end certified used cars tend to be really, really good. The luxury manufacturers have very strict rules about what gets certified,” says Art Spinella, industry expert with CNW Marketing Research. “Companies like Toyota and Chevy and other more mainstream manufacturers also have rules for certification, but they’re not as stringent, so it’s a little more of a gamble.”
After a vehicle is selected for potential certification, there’s the inspection process. Carmakers are big on touting how many points they check off before a car is certified, but is a 142-point checklist somehow better than a 141-point checklist? Probably not. They all tend to cover the same major areas, with some variation in the details or what signifies a checkpoint.
Source: http://search.msn.com
Posted by Stephanie Overby
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