Of the many reasons a buyer may consider a certified pre-owned (CPO) vehicle, a warranty often tops the list. Knowing that you have an additional layer of protection if something goes wrong is a major selling point for CPO buyers.
But not all warranties are created equal. Their terms and conditions vary by program and manufacturer. Here’s what to look for when you’re assessing a CPO warranty.
Know Which Type of CPO Program You’re Buying Into
Not all CPO programs are the same and neither are their warranties. It’s crucial to know what type of CPO program your vehicle falls under:
- Manufacturer CPO Programs: A manufacturer, or factory, CPO vehicle is one that has been through a comprehensive inspection by manufacturer-trained technicians. The warranties that come with these programs generally provide the strongest coverage.
- Dealer Programs: Some dealerships will use the phrase “dealer certified.” Don’t confuse this with a manufacturer CPO. It is not a regulated term and means only that the car has been inspected by the dealer’s own technicians. The warranties that come with these cars are provided by the dealer or a third-party provider, not the manufacturer itself.
You don’t necessarily need to avoid dealer-certified programs at reputable dealerships, but you will need to look carefully at the warranty to ensure it meets your needs, and to confirm that it is not backed directly by the brand.
MORE: How to Compare CPO Programs
What to Look for in a Warranty: Timeframe and Mileage
Just because a CPO vehicle may claim to come with a long warranty, you always need to read the fine print. Those 5- or 7-year warranties generally don’t start from the date you sign on the dotted line. Instead, they start from the car’s registration as a new vehicle: the original in-service date. You’ll need to get this date from the vehicle history report or the dealership.
If your warranty has the phrase “from the original in-service date,” you need to subtract the time that has already passed from the warranty total. For example, if the car has a 7-year/100,000-mile warranty, and you buy it four years in with 50,000 miles, you will only have three years or 50,000 miles left on the warranty.
When both a time limit and a mileage limit are listed on a warranty, the coverage is for whichever ends first. Using our example above , even if you only drove that car up to 60,000 miles over the next three years, your warranty would end once you hit the 7-year mark, even if you still had 40,000 miles to go before hitting the 100,000-mile limit.
If your warranty is “from the CPO purchase date,” your warranty will start from the date you purchase the vehicle, not the vehicle’s original in-service date.
Check, too, if your warranty is transferable. If so, and you decide to sell the car, this can be a big benefit to you and the buyer, since they’ll be inheriting your existing coverage. Not all programs allow this, and some charge an additional fee to do so, so know before you sign.
What to Look for in a CPO Warranty: Coverage
The two most important components to scrutinize in a CPO warranty are the powertrain and bumper-to-bumper warranties. Almost all CPO programs will offer these, but the details will vary, so read your warranties closely to ensure they align with your needs.
- Powertrain Warranty: This coverage focuses on some of the most expensive and critical elements of your car, including the transmission, engine components, and other drivetrain parts. When you’re looking at a CPO warranty, make sure you understand how many years and miles the powertrain warranty will apply.
- Comprehensive Coverage: Commonly referred to as a “bumper-to-bumper” warranty, this coverage will include vehicle systems outside of the powertrain, like electronics, air conditioning, and other sensors or mechanical parts. This coverage typically won’t be as extensive as the original coverage, and it generally lasts for a much shorter term than the powertrain warranty.
Beyond powertrain and comprehensive coverage, CPO warranties may include some additional types of coverage or perks:
- Roadside Assistance: Many CPO programs offer 24/7 roadside assistance programs. However, some drivers already pay for this add-on with their regular insurance or an automobile club membership, so if your CPO warranty includes it, don’t pay twice!
- Maintenance: This varies widely by brand, but you may find a CPO program that includes provisions for routine maintenance. This can be valuable.
- Trip-Interruption Coverage: Some CPO programs will include coverage if you encounter mechanical issues while away from home that require you to incur expenses like hotel stays while waiting for repairs.
- Rental Car Reimbursement: If your car needs to undergo covered repairs, your CPO program may offer rental car reimbursement.
Exclusions and Added Costs
A pain point with any warranty is thinking something will be covered, only to find it buried deep in the fine print of your warranty’s exclusions list. You’d be surprised by how many components often don’t make the coverage list.
Alongside excluded parts, note that the following costs will generally fall on your wallet rather than your warranty:
- Deductibles: Most warranty claims will require a deductible. Be sure you review this amount and that you will be willing to pay it if needed before you sign.
- Normal wear and tear: Items like tires, windshield wipers, light bulbs, and brake pads are generally not included.
- Repairs for cosmetic damage: Worn upholstery, dings, or scratches are generally not covered under your warranty.
- Aftermarket modifications: It will vary from policy to policy, but aftermarket parts almost always complicate claims, especially if they contributed to the failure.
- Accident damage: Any accident-related damage must be handled under your insurance rather than your CPO warranty.
- Environmental damage: Hailstorms, fires, floods, oh my! Like accident damage, these will become issues for your personal insurance rather than for your CPO program.
- Issues caused by neglect: If you leave your car for work, school, deployment, or any other long-term commitment and it falls into disrepair, your CPO warranty will not cover it.
MORE: CPO EV vs. Used EV: Which Is Better?
The Bottom Line
Reading the paperwork is definitely one of the least fun aspects of buying a car, but it’s one of the most important. Before you commit to a CPO vehicle, make sure you understand what type of certification program it falls under, what’s covered and isn’t covered, and the details of the warranty timeline. No one likes to be surprised with denied claims, and this can be avoided early on if you do your due diligence when shopping and buying.
Visit our Car Buying Information Center for curated articles and other resources to help you go into your car-buying process equipped with knowledge and confidence.
