New vs. Used vs. Certified Pre-Owned: Which Should You Buy?
Vehicle Buyer’s Guide
New vs. Used vs. Certified Pre-Owned: Which Should You Buy?
Should you buy a new car, a used car, or a certified pre-owned vehicle? Each offers a different balance of price, features, and warranty coverage. McGrath Family of Dealerships can help you compare those choices without making the process complicated. Start with your budget and priorities, then look at what each specific vehicle includes before deciding which option fits.
Compare New, Used, and Certified Pre-Owned Vehicles
| Factor | New vehicle | Used vehicle | Manufacturer certified pre-owned |
|---|---|---|---|
| Purchase price | Often higher than a comparable used example. | Varies widely by age, mileage, condition, and equipment. | Often higher than a similar non-certified used vehicle. |
| Warranty | New-vehicle limited warranties apply, with program terms and exclusions. | May have remaining warranty, separate coverage, or be sold as-is. | Coverage depends on the manufacturer and certification tier. |
| Depreciation | You typically experience more of the early depreciation. | Some depreciation has already occurred; future value still varies. | Already used, but its certification premium also affects purchase cost. |
| Features | Access to current model-year equipment. | Features reflect the year, trim, and installed options. | Usually selected used vehicles meeting program age, mileage, and condition rules. |
| Buyer fit | Shoppers prioritizing current features and new-vehicle ownership. | Shoppers prioritizing selection and purchase flexibility. | Shoppers who value defined inspection standards and added coverage. |
Manufacturer CPO is one type of certification. McGrath Certified and McGrath SmartBuy are separate dealership programs, explained below.
When Buying a New Car Makes Sense
A new vehicle may fit if you want current technology, a particular configuration, and the experience of starting ownership with a new car. New-vehicle warranties can help with covered repairs, although maintenance and wear items generally have their own rules.
Compare the complete purchase price and available financing offers. A new vehicle may have a promotional rate, but qualification and offer terms vary. Look at total cost rather than assuming a lower APR automatically makes the more expensive vehicle affordable.
When Buying a Used Car Makes Sense
Buying used opens up more model years, trims, and price points. You may find equipment you want at a lower purchase price than a comparable new vehicle, or choose a less expensive option that leaves more room in your budget.
Condition matters. Review the history report, maintenance records, inspection results, and upcoming service. Ask whether any factory warranty remains and whether additional coverage is included. Used doesn’t automatically mean as-is, and it doesn’t automatically mean warranty-backed.
Our used car buying guide gives you a practical checklist.
What Does Manufacturer Certified Pre-Owned Mean?
A manufacturer CPO vehicle qualifies under a specific manufacturer-backed program. Requirements may include age and mileage limits, an inspection, reconditioning, and vehicle-history standards. Coverage and benefits vary by brand and program tier.
Ask which program applies, when coverage begins, how much remains, and whether a deductible applies. Roadside assistance, exchange benefits, and other extras aren’t identical across brands.
Manufacturer CPO vs. McGrath Certified vs. SmartBuy
A “certified” label should lead to a specific program name and written documents. These categories aren’t interchangeable, and a vehicle’s listing should identify the applicable coverage.
| Program | What distinguishes it | Where to learn more |
|---|---|---|
| Manufacturer CPO | Manufacturer-backed standards and benefits that vary by brand and tier. | Brand-specific CPO guides |
| McGrath Certified | McGrath’s vehicle inspection and reconditioning program, with a 12-month/12,000-mile limited warranty and an eligible-vehicle exchange policy. | McGrath Certified guide |
| McGrath SmartBuy | McGrath’s 106-point inspection program, with a 3-month/3,000-mile limited powertrain warranty and a stated $100 deductible. | McGrath SmartBuy guide |
McGrath Certified’s exchange policy applies within three business days or 150 miles, whichever comes first, subject to eligibility and other conditions. It is an exchange policy, not an unconditional money-back guarantee.
Review the actual warranty contract for coverage start, time and mileage limits, covered components, deductibles, exclusions, and claim procedures. Don’t add coverage periods together or assume programs stack unless the vehicle’s documents expressly confirm it.
Compare Depreciation and Total Ownership Cost
Depreciation is the change in a vehicle’s value over time. Buying used means an earlier owner has already absorbed some of that change, but it doesn’t guarantee a particular resale value.
Compare actual purchase prices, interest costs, insurance quotes, expected maintenance, and how long you plan to keep the vehicle. Certification can add value through defined benefits, but those benefits should make sense for the price difference.
Our car affordability guide can help you put the full budget together.
New vs. Used vs. CPO FAQs
Is certified pre-owned worth the extra money?
It may be if the inspection standards, coverage, and other benefits matter to you. Compare the certification price premium with the actual contract and condition of both vehicles.
Is McGrath Certified the same as factory certified?
No. McGrath Certified is a dealership program. Manufacturer CPO follows the terms of a manufacturer-backed program. Ask which certification applies to the specific vehicle.
Does SmartBuy cover every repair?
No. SmartBuy includes a limited powertrain warranty. Covered components, exclusions, deductible requirements, and other terms are defined in the warranty documents.
Can I finance a certified used vehicle?
Financing may be available, subject to credit approval and lender requirements. Compare the APR, term, amount financed, and total cost, just as you would with any vehicle purchase.
Explore Your Options With McGrath
You don’t have to settle on a purchase category before starting your search. McGrath Family of Dealerships can help you compare new, used, and certified vehicles across Eastern Iowa and explain what each option includes.
