True Cost To Own: Key Costs For Used/CPO Cars

How much does it cost to own a used car? How about a car that’s certified pre-owned (CPO)? Depending on your needs and budget, both routes to getting a car in Miami provide some advantages and disadvantages. Which approach is right for you? Let’s find out.

CPO Vs. Used: What’s The Difference?

While technically used, certified pre-owned vehicles only receive that title if they meet stringent age and mileage requirements and undergo a rigorous manufacturer-backed inspection. On the other hand, used vehicles typically aren’t inspected as closely and can vary widely in condition, mileage, and age. We cover the difference between CPO and used vehicles in detail elsewhere, so check it out if you want to learn more.

How Much Does It Cost To Own A Used Car Vs. A CPO Car?

Regardless of which you choose, ongoing repair and maintenance costs are unavoidable. However, you may pay around $500-$1,000 in average maintenance costs for a used car, while a CPO car may require $300-$500 annually. This difference arises because CPO vehicles tend to be newer, in better condition, and have undergone repairs and reconditioning before being made available for purchase. Used vehicles won’t receive such treatment before being put on the lot, making them riskier purchases.

That said, a used car will be less expensive than a CPO car, especially if you choose to purchase the former outright instead of financing it. If you’re willing to do some extra research and get it examined by a trusted mechanic before buying it, cash-flowing a used car can be a great option.

CPO Car Warranty Vs. Extended Warranty For Used Cars

A CPO car warranty also plays a big role in reducing the overall maintenance costs for a CPO vehicle relative to a typical used vehicle. Since CPO vehicles are generally covered by the manufacturer’s warranty, the out-of-pocket costs of unexpected and potentially expensive repairs can be drastically reduced. This leaves the Miami Shores driver mostly responsible for lower-cost routine maintenance procedures, such as tire rotations, oil changes, and brake pad replacements that aren’t covered by the CPO warranty.

On the other hand, used cars don’t usually come with manufacturer-backed warranties, though unexpired warranties attached to the car’s VIN may transfer with a change in ownership. Instead, you can consider purchasing a used car extended warranty for coverage. Also called a “Vehicle Service Contract (VSC),” this optional protection plan covers specific repairs after the manufacturer’s warranty expires. Here are a few things you should know about VSCs:

• VSCs are insurance products, meaning you’ll need to pay monthly premiums
• Rates can vary based on mileage and car type
• VSCs can be purchased at the dealership or from Direct-to-Consumer providers

A VSC can be quite costly, so think carefully before purchasing one. If your car still has the factory warranty or is a relatively new and well-maintained car from a reputable manufacturer, you may not need it. If you want to learn more, contact us or visit our dealership near Aventura today.

CPO Vs. Used: Discover Your Options With Jaguar North Dade

Thanks to its inherent quality, inspection process, and included warranty coverage, a CPO vehicle is generally more cost-effective over the long haul than a typical used car. However, a used car can be a great option if you do your research and due diligence before purchasing. If you’re ready to purchase or have questions, visit us in North Miami and speak with us. You can tour our inventory of both used and CPO vehicles, speak with our finance team, and more.