Shopping for a reliable used car on a super tight budget? It’s not an impossible task.
That’s because “certified pre-owned” (CPO) car programs have taken a lot of the mystery out of buying a used car, since CPO vehicles typically have lower miles, fewer issues, and require fewer repairs than non-certified used cars.
Why buy a used car?
Obviously, cost is the number-one selling point in buying a used vehicle during this age of sky-high inflation. As prices soared after the COVID-19 pandemic, new cars in 2024 cost as much as 29% more than they did just three years earlier, according to PBS. Used cars, on the other hand, are exponentially less expensive — and all you need to do is search for the same model you’re interested in, just a few years older.
In addition, used cars experience less depreciation than new cars, which can shed as much as 20% of their value in the first year alone, according to CNBC. Within five years, new cars lose 60% of their value, which means, in theory, that you could buy a car that’s just one year off the lot and pay just 80% of its MSRP.
It’s a lesser-known fact, but used cars are often cheaper to insure than new ones as well. MarketWatch says used cars have lower insurance rates because new cars are typically more expensive to repair — simply because they are worth more.
Plus, many pre-owned dealers include a warranty with their used vehicles, and unlike new cars, the perks that come with these cars and SUVs, like sunroofs or sound systems, won’t cost you extra.
Certified pre-owned used vehicles: What they are & why to buy one
A lot goes into the CPO process, which translates into a safer and more reliable used vehicle for the buyer. Before certifying and selling a vehicle, certified dealers put it through a multi-point inspection and repair any issues they find. (Most automakers also mandate that a vehicle history report from Carfax or AutoCheck be given to the buyer for transparency.)
Lexus and Mercedes-Benz were the first to introduce CPO programs in the 1990s, although each manufacturer sets its own specific CPO qualifications. However, most require CPOs to be no more than five to six years old and have between 80,000 and 100,000 miles on the odometer.
According to Consumer Reports (CR), an independent consumer ratings agency and trusted authority on more than 9,000 products, including used cars and SUVs, many CPOs are leased vehicles that have been returned at the end of a two or three-year term.
Related: The longest-lasting car models (200k+ miles) according to Consumer Reports
When selling CPOs, dealers often include a variety of customer benefits that don’t come with other used cars, such as an extended warranty and free roadside assistance during the warranty period — another plus.
Naturally, these features cost the dealer money, and they pass these expenses on to their customers. That’s why the price of a CPO vehicle is usually slightly higher than a non-certified used vehicle of the same make, model, and year.
According to Kelley Blue Book, CPO certification increases the market value of a used car by $1,000–$2,000, although your final sales price is ultimately determined by a number of factors (which means you may not have to pay quite that much if you haggle).
However, the peace of mind you get from knowing that the vehicle you are buying is reliable, even if you don’t drive it new off the lot, is often worth the added expense — especially for those on shoestring budgets who can’t afford the unexpected repair costs that often come soon after buying a used vehicle from a private seller or small-time dealer.
More on automotive:
The 30 most reliable car brands in 2024, according to Consumer ReportsA full list of EVs and hybrids that qualify for federal tax credits
The least expensive car brands to repair & maintain according to Consumer Reports
What are the best used cars according to Consumer Reports?
In August 2023, Consumer Reports published its list of “Best Used Cars for You,” dividing its top vehicles into two price ranges:
$15,000–$20,000, which featured newer models with around 100,000 miles driven$10,000–$15,000, which were cars and SUVs that were 10+ years old — and if you’re looking in this category, you should make sure that the car’s mileage is commensurate with its age.
Here are the winners.
Best used cars between $15,000 and $20,000
Toyota, Mazda, and Honda-manufactured vehicles topped the list:
The 2019 Honda Fit
TTTNIS, CC0, via Wikimedia Commons
Best used small car under $20k: 2017–2019 Honda Fit
CR praised the spacious interior in spite of its size as well as its gas mileage.
The 2018 Mazda6
Vauxford, CC BY-SA 4.0, via Wikimedia Commons
Best used midsize car under $20k: 2017–2018 Mazda6
The Mazda6 was dubbed “more engaging to drive” than its counterparts, and the 2018 model was lauded for its improved ride.
The 2016 Acura TLX
Bull-Doser, Public domain, via Wikimedia Commons
Best used luxury car under $20k: 2015–2016 Acura TLX
This sedan scored high marks for its price point and features.
The 2017 Honda HR-V
Vauxford, CC BY-SA 4.0, via Wikimedia Commons
Best used small SUV under $20k: 2017–2018 Honda HR-V
Those surveyed appreciated the Honda SUV’s interior as well as its fuel economy.
The 2015 Toyota Highlander
Jason Lawrence, CC BY 2.0, via Wikimedia Commons
Best used midsize SUV under $20k: 2013–2015 Toyota Highlander
The Highlander’s second-row seat was a big selling point, as were its 27 miles per gallon.
Best used cars between $10,000 and $15,000
Several American cars made an appearance on this list of budget buys.
The 2016 Ford C-Max
Elise240SX, CC BY-SA 4.0, via Wikimedia Commons
Best small car under $15k: 2014–2016 Ford C-Max
Ford got props for this fuel-efficient hatchback, which averages 37 miles per gallon.
The 2013 Honda Accord
Best midsize car under $15k: 2013–2014 Honda Accord
CR called the Honda’s V6 “smooth with quick acceleration.”
The 2015 Lincoln MKZ
SsmIntrigue, CC BY-SA 4.0, via Wikimedia Commons
Best used luxury cars under $15k: 2014–2015 Lincoln MKZ
This Lincoln rode as smoothly as European brands; CR noted that the standard 2015 model comes with a backup camera.
The 2013 Toyota Venza
CEFICEFI, CC BY-SA 3.0, via Wikimedia Commons
Best wagon under $15k: 2013–2014 Toyota Venza
Mixing the best elements of SUVs and station wagons, CR recommends the “peppier” V6.
The 2014 Mazda CX-5
オーバードライブ83, CC BY-SA 4.0, via Wikimedia Commons
Best used SUV under $15k: 2014–2016 Mazda CX- 5
This Mazda earned high marks for its handling and steering as well as its fuel economy.
How does this list compare with other ratings?
It always pays to shop around — even when sourcing reviews online.
Cars.com, a for-profit entity, which thus differs in scope and motivation from Consumer Reports, also put together its list of “Best Used Cars for $20,000” and placed heavy emphasis on price and fuel economy.
Not surprisingly, there was some overlap: The 2018-20 Honda Fit was named “Best Subcompact Car” by cars.com, which touted its safety features, such as adaptive cruise control, lane-centering steering, automatic emergency braking, and more.
Related: Veteran fund manager picks favorite stocks for 2024
