Study Shows Honda Vehicles Have Lowest Certified Pre-Owned Cost Premium
A new study by iSeeCars shows that Honda Certified Pre-Owned (CPO) vehicles have the industry's lowest cost adder by comparison to used cars of the same model. Certified pre-owned vehicles are carefully inspected by manufacturers to ensure they are among the best of the used cars available. Many come from cars turned in on three-year leases. These vehicles also have added warranties that add to the manufacturer's standard warranty. However, these CPO cars cost a bit more than regular used cars bought from a private party or a used car lot. In Honda's case, the added cost for the CPO version is the lowest among all brands.
On its list of the ten vehicles with the lowest percentage cost adder for a CPO model, Honda's Civic had the lowest dollar cost adder at just $291. The Accord, Odyssey, and CR-V also make the list. “Honda’s CPO terms include a one-year or 12,000-mile comprehensive warranty and a seven-year or 100,000-mile powertrain warranty from the original time of sale,” noted Ly. “Honda CPO vehicles also have no deductible for repairs, which in addition to the warranty terms provide high value at a minimal cost.”
The comparison to luxury CPO car models is stark. Cars like the Mercedes E-Class can cost as much as $2,500 more than non-CPO E-Class cars of the same trim and model year. The highest percentage cost model overall is the Lexus IS 250 at 8% more than that same model without CPO protection. However, the program from Lexus is also a standout and offers much more warranty than mainstream brands do. “Lexus’ CPO program is considered among the best in the luxury segment and offers an unparalleled six-year limited comprehensive coverage without a mileage limit as well as a package including four free maintenance services,” said Ly.
iSeeCars says that to determine the CPO cars with the lowest premium compared to their non-CPO counterparts, the group analyzed more than one million used cars from the 2015 model year to identify the cost differences between CPO and equivalent non-CPO used cars. The overall average percentage premium for CPO cars was 3.6%. Honda's popular models have a premium of about half that cost.