Kia, Lexus top Autotrader’s analysis of 2021 CPO programs
For your certified pre-owned buyers this year, you might want to keep in mind the brands that fall under the CPO programs Autotrader has honored with the title of top CPO vehicle programs for luxury and non-luxury automakers this year.
According to the site, programs from Lexus (luxury) and Kia (non-luxury) stand out in 2021 — something to keep in mind when discussing options with CPO customers.
"With used-car prices on the rise and new-car inventory scarce, right now it makes a lot of sense to consider a certified pre-owned car or truck," said Brian Moody, executive editor for Autotrader. "Autotrader expects the prices of used cars to remain higher than usual for the remainder of 2021, so the gap between a typical used-vehicle price and a CPO price is narrowing. Shoppers can view these current market conditions as an advantage, as buying CPO includes several benefits above and beyond purchasing a non-certified used car."
To break down the reasoning for the top brand choices, Autotrader shared the main item of record for Lexus was the fact there is no mileage cap for its added CPO warranty, in addition to other program features.
Take these details for example: To qualify for Lexus L/Certified, a vehicle must be no more than six years old, have no more than 70,000 miles on the odometer, pass a factory-supervised 161-point inspection, and have a clean vehicle-history report. In addition, its CPO warranty adds another two years with unlimited mileage coverage to whatever remains of its original four-year/50,000-mile new-car warranty — an impressive perk to sell your customers on their next Lexus. Other highlights of the Lexus L/Certified program include: 24-hour roadside assistance, loaner car covered during repairs, and trip-interruption allowance providing reimbursement for meals, a rental car, lodging and four scheduled maintenance visits.
For Kia, on the non-luxury side, Autotrader said the Korean brand beat out other heavyweights in what is a very competitive CPO marketplace. Why?
What Autotrader called Kia's “stellar powertrain warranty” as well as the fact that the CPO coverage is transferable, combined to make the program stand out above the rest this year.
Kia's CPO coverage can be transferred to another private owner for a $40 fee. Here are the details: For a used car or SUV to qualify for Kia's CPO program, it must be no more than five years old, have no more than 60,000 miles on the odometer, pass a 173-point inspection, and have a clean vehicle-history report. The program also features a 10-year/100,000-mile powertrain warranty.
“When a Kia model passes from its original owner, its powertrain warranty is reduced to five years/60,000 miles from the original new-car purchase date. However, Kia reinstates the original 10-year/100,000-mile powertrain warranty for its CPO cars and SUVs,” Autotrader explained in the press release announcing the news.
Along with the extra warranty coverage, Kia's additional CPO program features include: 24-hour roadside assistance, up to 10 days car-rental allowance of $35 per day for covered repairs, limited trip-interruption reimbursement of up to $500 for five days, and a three-month satellite radio subscription.