Contrasting CPO and Extended Warranties
If you’re shopping for a gently-used vehicle, you might be deciding between a certified pre-owned vehicle with a CPO warranty vs. a used vehicle with an extended warranty. Here’s a brief overview of how these two types of warranties differ to help you determine which one is the right investment for you.
Multiple Advantages: Reasons to go with a GM CPO vehicle
CPO vs extended
The main difference between CPO and extended warranties is that one is backed by a car’s automaker and the other is backed by a third-party company. A factory CPO vehicle’s warranty differs depending on the manufacturer when it comes to deductibles and the types of repairs covered, as U.S. News & World Report’s John Vincent points out. But a CPO warranty typically offers more comprehensive coverage and more flexible terms than an extended warranty does, adds Edmunds’ Ronald Montoya.
Some key advantages of each
CPO warranties have some distinct benefits worth noting if you’re on the fence between a CPO and a non-CPO used vehicle. For starters, you can service your vehicle at any official OEM dealership service department, not just the one you bought the vehicle from, explains Vincent. That means you can enjoy cost-free vehicle repairs when you’re traveling out of state. And CPO warranties won’t cost you extra; their price is built into the overall price of the CPO vehicle. Lastly, CPO warranties often come with extra side perks that vary from free periodic maintenance tasks and trip interruption coverage to a satellite radio subscription and roadside assistance, as Montoya highlights.
Extended warranties for non-CPO used cars have their own benefits, says Vincent. For one thing, you can service your vehicle at independent auto shops, not just a certified dealership. This can be a useful advantage if you travel frequently in remote areas where auto dealerships are scarce. Secondly, you can add an extended warranty to almost any pre-owned vehicle regardless of its age or condition. Thirdly, non-CPO used vehicles are often cheaper than CPO vehicles, so even though you’ll have to pay a bit extra for the extended warranty, it might be the most affordable option.
If you’re still not sure whether to go the CPO route or the extended warranty route, it can be safer to go with the former. A CPO vehicle backed with a CPO warranty will give you more peace of mind since you’ll know that the manufacturer (not just the dealership you purchased the CPO car from) will back certain repairs. You’ll save yourself the time and hassle of researching the exact terms of a third-party’s extended warranty. And you’ll minimize the chance of problems down the road if the third-party company that backs the warranty turns out to be sketchy and unreliable.
Want to learn more? Read up on GM’s new extended limited warranty option, then learn what types of circumstances might void a car’s warranty.
Buy Used With Confidence: Find the right CPO vehicle for you
Whitney Russell resides in Dayton, though her spirit can be found beach-bumming in Puerto Rico (the land of her half-Puerto Rican heritage). When not crafting car-related content, she can be found chasing after the most amazing toddler in the world, watching her “beaver” of a husband build amazing woodworking projects, hanging out with two crazy dogs, and visiting family and friends. She also enjoys traveling, crafting, and binge-watching period dramas when time allows. See more articles by Whitney.