Certified Pre-Owned vs. Used: What's the Difference?

Jun 18

When buying a car and you don't intend to buy a brand new one, your alternative options can be a certified pre-owned car or a used car. Some people use these terms interchangeably, but in reality, they are very different. Each of these two options has its own advantages and disadvantages that you should be aware of before making a buying decision.

Understanding the difference between a certified pre-owned car also known as certified second-hand cars versus a used car puts you in a better position to decide which option is more suitable for your needs.

Certified Pre-Owned Vehicle

A certified pre-owned car is a used vehicle that is factory-certified and is available for purchase at the brand's dealership. A good example would be a certified pre-owned Toyota Altis sold at a Toyota dealership.

Different manufacturers have their own criteria or requirements for certified pre-owned cars, but generally, they are well-maintained, accident-free, low-mileage and are only a few years old. They also conduct quality assurance inspections to ensure the overall quality of the car. Moreover, certified pre-owned cars generally come with manufacturer warranty coverage.

With how certified pre-owned cars are rated, many car buyers regard this type of car as highly reliable and like-new.

Pros

Warranty - Unlike a regular used car, a certified pre-owned vehicle comes with a manufacturer's warranty coverage as a form of quality assurance. This is perhaps one of the most compelling reasons why many people prefer this option.
Like-new condition - With the like-new condition of the car, they are in very good condition with no hidden issues and this also means that you don't have to worry about any major repairs anytime soon.
Peace of mind - Generally, when you buy a car already previously owned by another customer, you are buying at your own risk. But this is not the case for certified pre-owned cars. With the strict quality testing by the manufacturer, you can ensure that the car is what the dealer says it is.

Cons

Higher price - Manufacturers spend a significant amount of investment in money, time and effort to ensure that the car is in crisp condition. These extra costs and work plus the warranty coverage make these cars more expensive than a regular used car.
Limited options - Due to the stringent screening requirements of the manufacturers before a used car can be certified, you'll likely have fewer options available.

Used Cars

A car that has been owned by at least one previous owner is considered a used car. But unlike certified pre-owned cars, they don't get any certification from the manufacturer.

The age, mileage and condition of used cars can greatly vary. And depending on the age of the car, it may or may no longer be covered by a manufacturer warranty.

Pros

Lower price - A regular used car can be thousands of BAHT cheaper than a certified pre-owned vehicle. The reason behind is that you are generally getting the car as is from its previous owner without a major cost to the dealership. Because of their lower price, used cars are an attractive option to interested customers who have a tight budget.
More options to choose from - Because there is no screening process for used cars, you can find about any vehicle brand, model and trim at many local dealerships in Thailand.

Cons

High risk - One of the main drawbacks of buying a used car is the fact that you are buying at your own risk. A car may look good on the outside but may have hidden issues that entail major and expensive repairs. You need to thoroughly inspect the car and do a test drive to avoid inexpensive problems in the future. It may also be worth hiring a mechanic to check the vehicle for you.
No warranty coverage - Once the original warranty of the car has already expired while still with the previous owner, there is no more warranty coverage that you can take advantage of. This means that even if you newly purchased the used car from the dealership, you have to shoulder all the repair costs even if they happen right after driving the car out of the dealership.