Driving Insights by CARFAX Canada

Certified Pre-Owned Buyers: What are they looking for?

Written by CARFAX Canada | Thu, Jun 23, 2022

Certified pre-owned (CPO) programs have become extremely popular, with almost all manufacturers and dealerships offering some version of it. But the cost and components of a certified program can vary substantially, so what motivates someone to choose certified?

Like their used counterparts, customers who bought CPO last time are likely to be cross-shopping other options and will need to decide if CPO is right for them for their next vehicle. 2 out of 3 CPO buyers consider other options, with 53% considering regular used vehicles and 25% considering new.

When CPO buyers eventually decide to buy, it’s because of the peace of mind and confidence buying CPO can provide, with the vehicle inspection being the most important component of the program. However, just like regular used vehicle buyers, these customers can find themselves buying CPO because they’re looking to save money or the vehicle that meets their needs just happens to be CPO.

Among the least popular reasons to buy CPO include lower finance rates, lower payments and less depreciation vs. new. With the majority of CPO buyers considering other purchase options, selling CPO could take some convincing. Focus less on the value provided by each individual component of the program, and more on how the program comes together to ensure the customer can drive safely off your lot knowing they picked a great vehicle.