If you’re purchasing a certified pre-owned (CPO) vehicle, you may be wondering whether the vehicle is still under warranty or comes with any additional warranty coverage. While this varies by dealer, many certified pre-owned vehicles come with some warranty coverage, even if only for a short term. This is known as a certified pre-owned warranty, which differs from an extended warranty in a few ways.
In this article, we’ll dive into the differences between these two coverage types and provide our recommendations for the best extended warranty companies.
What’s the Difference Between Certified Pre-Owned and Extended Warranties?
A certified pre-owned car warranty typically comes with the purchase of a CPO vehicle, which has been thoroughly inspected by the dealership to ensure it’s up to the manufacturer’s standards. A CPO warranty provides coverage similar to the factory warranty for a short time after the vehicle’s purchase, generally around one year. The length of coverage varies by the dealership or manufacturer.
An extended warranty, on the other hand, is an optional plan that allows you to extend your vehicle’s coverage for a set amount of time or miles. These can be purchased through your vehicle’s manufacturer or through a third-party company. Both types of warranties pay for covered repairs and replacements that are the result of a mechanical breakdown.
Types of Warranty Coverage
A certified pre-owned extended warranty is usually an extension of the manufacturer’s factory coverage, which includes comprehensive bumper-to-bumper coverage as well as powertrain coverage. This means that most of your vehicle’s systems are covered under warranty with a small list of exclusions. A CPO warranty, like an extended warranty, does not cover damage from accidents or maintenance costs. CPO warranties generally last for about 1 year or 12,000 miles, though this varies by the manufacturer.
When purchasing an extended warranty, you’ll likely have multiple options. Manufacturer extended warranties tend to be more limited with only a few or maybe even a single option for coverage. Third-party plans vary by provider, but there are usually a range of coverage options available, ranging from powertrain coverage for your vehicle’s most essential systems to exclusionary coverage similar to a factory warranty on a new car.
CPO vs. Extended Warranty Costs
Certified pre-owned warranties are typically included with the purchase of a CPO vehicle. Because of the extensive vetting process CPO vehicles go through and the fact that they include some warranty coverage, the sales price of the vehicle may be higher than buying a non-CPO vehicle. However, the extra year of warranty coverage can provide significant value.
Extended warranties are optional contracts that you can purchase from the manufacturer or a third-party company. Because of this, prices can vary significantly depending on the source of your contract. Our team found that extended car warranties tend to cost between $1,000 and $3,000 in total, depending on a variety of factors. In our May 2024 car warranty survey that included 1,000 respondents, over 31% said they paid between $1,000 and $2,000 for their extended warranty and about 25% said they paid between $2,000 and $3,000.
CPO Warranty vs. Extended Warranty: Conclusion
A CPO vehicle can provide peace of mind knowing that it’s been through a thorough inspection, and the warranty coverage that comes with your purchase provides valuable protection as well. If you want to continue your coverage after your CPO warranty expires, looking into an extended warranty is a smart move. We recommend getting quotes from multiple providers so you can find the best price and coverage for your needs.
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best extended auto warranty providers.
- Industry Standing: Our team considers Better Business Bureau (BBB) ratings, availability, and years in business when giving this score.
- Coverage: Because each consumer has unique needs, it’s essential that a car warranty company offers an array of coverage options. We take into account the number of plans offered by each provider, term limits, exclusions, and additional benefits.
- Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team performs ongoing secret shopper analyses for different vehicles, mileages, warranty plans, and locations to give this rating.
- Customer Service: Reputable extended car warranty companies operate with a certain degree of care for consumers. We take into account customer reviews, BBB complaints, and the responsiveness of the customer service team.
*Data accurate at time of publication.
