When selecting a vehicle, the two common choices customers have are to buy a new car or a used one. However, there is another alternative that many customers are now aware of: purchasing a certified pre-owned (CPO) vehicle, or a used car that have been guaranteed to be in decent condition by the manufacturer.
Some advantages of buying a CPO car are the following:
Best of both worlds
On the one hand, buying a new car, while it brings numerous advantages, can be a financially difficult undertaking, which is why many customers would rather not go through with the purchase. On the other hand, a pre-owned car would cost much less, but it carries more risks.
CPO vehicles also sell significantly less than brand-new cars, but they have minimal risks because they have been gently used (with an assurance that the vehicles had not been involved in major collisions), thoroughly inspected, and reconditioned.
When a new car is driven off from the dealership, its value has already depreciated by about 20 percent. That value goes down by 10 to 20 percent more during the first year of owning the car. Buying a CPO car is more cost-effective because the vehicle’s depreciation rate is already minimal.
Lower insurance costs
Because the insurance rate is determined by the value of the car, the costs of insuring a CPO car is lower than that of new vehicles. There are also some elements of car insurance that can be dropped, further reducing insurance costs.
American Federal Auto LLC specializes in the sale of pre-owned vehicles that have been certified inspected, serviced, and reconditioned. It is committed to providing the perfect combination of quality and affordability. For more information about the company, visit this website.