How Much More Should a Certified Pre Owned Vehicle Cost?

Customers on the market for a certified pre owned vehicle often know that in exchange for a better warranty and a more thoroughly inspected vehicle, they will pay a higher price or "premium," but just how much more a CPO car costs differs according to a variety of factors.

The Added Premium for a CPO Used Auto Sale

According to some industry experts, the mark-up for a a CPO used vehicle tends to fall from 2% to 8% of the price. Customers will typically pay several hundred dollars more for a vehicle that has been certified by a manufacturer, and in many other cases, the price increase tops $1,000.

Car Categories

According to market reports, the market price for budget cars and small SUVs is less affected by a CPO hike than the price of a mid-size sedan. Specialty and luxury cars often include greater price increases for CPO, where a late-model sports car or similar buy can carry a price hike of two or three thousand dollars.

Getting What You Pay For: CPO Deals and Dealership Warranties

In pursuing any kind of real manufacturer certification for a pre-owned vehicle, buyers must distinguish "true CPO" from an in-house warranty offering by a dealer. Just because the dealer includes a reference to the auto maker in the warranty product doesn't mean that the manufacturer has signed off on the certification, or that the warranty is portable. Look at the fine print before laying down extra cash for certifications that don't carry the weight of the auto maker's seal of approval.