Groove Auto, one of your leading Denver Used Car Dealers, can help guide you through the process of choosing a vehicle that is perfect for your financial and lifestyle needs.
When purchasing a car, consumers used to have three options, buy a new car, lease a car, or buy a used car. Each type of car had its specific advantages and disadvantages that car buyers would decide which the best fit was for them. However, within the last six to eight years, another option has been made available to the consumer, the Certified Pre-Owned car (CPO).
The CPO came about as a way to sell former leased cars that were only two to three years old, in very good condition, and whose lease had just expired. In many cases these previously leased cars were luxury cars such as a Lexus or Mercedes. Therefore, a CPO provided a way for used car buyers to purchase a high-end vehicle that they would not normally be able to afford.
In addition to the number of off-lease cars that can be converted to CPOs, many automobile manufacturers have been struggling to the point that they are desperate to find ways to maximize their sales revenues. In 2005, about 1.6 million CPOs were sold, which accounted for about 10 percent of total automotive sales in the US. Furthermore, according to JD Power and Associates, 38 percent of late-model used car purchasers bought a CPO. There are so many of used cars Denver CO has to offer, you need to be certain that the dealership suits your needs as well as the vehicle.
What Exactly Does A CPO Mean?
With a manufacturer's CPO, car makers take their later model vehicles, less than five years old, subject them to vigorous inspections, in some cases recondition certain parts of a car up to standard, and apply an extended warranty and other incentives so they can resell their CPOs at a premium, used car price. This is intended to benefit both car manufacturer and buyer. The manufacturer will maximize on their profit margin while the buyer will receive an almost new, higher end car with a limited warranty that should be reliable.
Advantages of Buying a CPO
Besides the ability to buy a higher-class car than you would normally be able to afford new, due to the car's depreciation, CPO buyers like the extended warranty and rigorous vehicle inspection that a CPO offers. This appears to give the car buyer piece of mind that he or she has bought a near new car, which can be relied upon to operate properly. Additionally, some manufacturers will include a vehicle's car history from companies such as Car Fax.com
Some manufacturers will include other incentives like a free initial oil change, 24 hour roadside service, detailing, other options and even low financing rates that can help make the car more affordable. When looking for a Used Car in Denver make sure that you ask what's included in your manufacturer program.
Although determining which cars qualify as a CPO differs from manufacturer to manufacturer, usually luxury manufacturers are the most selective when deciding which of their vehicles qualifies as a CPO. Therefore, since luxury manufacturers have higher standards you are more prone to getting a better condition, lower mileage CPO when buying a luxury CPO vehicle.
Despite the fact that different manufacturers advertise more extensive inspections, they all basically cover the same areas of a vehicle. However, you may still wish to carefully review the points from an inspection. The same holds true for vehicle warranties, which can vary quite a bit from a few weeks to a couple years. Some manufacturers may even offer an exchange or return policy.
Groove Auto, your Denver Car Dealer, has huge selection of certified pre-owned vehicles to choose from - visit our of our Denver-area dealerships.