When you’re shopping for a used car, you’ll likely come across two common terms: used and certified pre-owned (CPO). Both describe vehicles that have had previous owners, but they’re not the same.

What’s considered “certified pre-owned?”

A certified pre-owned (CPO) car is still technically a used vehicle, but it’s one that meets specific quality standards set by the automaker. It’s typically a late-model car — often under five years old — with mileage below a certain limit.

Before a vehicle is sold as CPO, it must pass a detailed multi-point inspection, often covering over 150 items, from the engine and brakes to interior features and cosmetic condition. It’s then reconditioned using factory parts if anything needs attention.

Most CPO programs may also include:

• A manufacturer-backed extended warranty

• Roadside assistance

• Free maintenance, trip interruption coverage, or loaner vehicles

All of this offers buyers confidence from knowing that the car has been thoroughly vetted and is backed by the brand.

What’s considered “used?”

A used car is simply any pre-owned vehicle that does not carry a CPO label. It may still be in excellent condition. It may even have gone through an inspection at the dealership. But unless it’s part of an official CPO program, it won’t come with manufacturer certification, an extended factory warranty, or bundled perks.

That said, many dealerships do offer optional service contracts or third-party warranties for used vehicles. While these can provide peace of mind, they’re not the same as a CPO warranty supported by the original automaker.

The differences at a glance

How much will you pay for CPO?

CPO vehicles cost more than their non-certified counterparts, but not dramatically so.

• Most data shows CPO premiums hover around 3-4% of the vehicle’s price

• In dollar terms, that’s usually about $500 to $2,000 more, depending on brand and model. Increasing parts and labor costs have this trending upward, though.

Luxury brands and stronger CPO programs may push this premium higher. In contrast, high-volume sedans and mainstream SUVs may see smaller price differences.

Choosing what’s right for you

The choice between a certified pre-owned and a used vehicle really comes down to your priorities.

• CPO is a smart move if you want added protection, warranty coverage, and the reassurance of a thorough inspection — all from a known brand

• A used car may be the better fit if you’re focused on getting the lowest possible price, are willing to pay separately for a warranty, or plan to have your own trusted mechanic inspect

Either way, it’s important to verify the vehicle’s history and understand exactly what’s covered (or not) before signing any paperwork.

Leaning towards a used vehicle?

Credit Acceptance works with over 15,000 dealerships nationwide, many of which sell used cars. You can use our dealer finder to locate the lots nearest you. Also, if you’re ready to buy, you can go ahead and get pre-qualified for auto financing while on our site. Doing so will tell you the maximum monthly payment you may qualify for.