Certified Pre-Owned: Why Education Is Your Secret Weapon in 2026

Certified pre-owned (CPO) vehicles have long been a profitable sweet spot for dealers. CPO vehicles are used cars that've passed a thorough manufacturer-backed inspection and reconditioning process, often including extended warranties, and come with added benefits such as roadside assistance. These assurances give buyers peace of mind and justify higher margins for dealers. 

Recent data shows that CPOs performed better in 2025 than in 2024, yet, younger buyers' behaviors in the F&I office suggest there’s still untapped potential. Dealers have an opportunity to educate this audience on the unique benefits CPOs provide. 

Younger Buyers Show Patterned Behavior of Buying Protective Products

CDK data reveals Generation Z and millennials adopt protection products — extended warranties, theft protection, GAP insurance and more — at significantly higher rates than older buyers. Many are first-time buyers operating on tighter budgets and not just because they have less cash on hand. Rising prices for new and pre-owned cars, along with increased repair costs, make the stakes of a poor purchase higher than ever. For these buyers, protection products are a way to gain peace of mind and mitigate the risk of unexpected expenses when even their monthly payments feel tight. 

First-Time Buyers Are Uneducated on CPO Programs 

CPOs are a perfect fit for these buyers, yet, many first-timers aren't aware of the opportunity. They often shop based on price alone, overlooking the value of rigorous inspections, manufacturer-backed warranties, and extended coverage that justifies a CPO premium. 

Consider this: Two Toyota Corollas sit on the lot. One's a CPO backed by a manufacturer's warranty thorough inspections and a verified clean history. The other has a lower price and seems like the better deal at first glance. But that lower-priced car may require additional spending on extended warranties and other protection products, and it could have a less-than-ideal history. Dealers need to seize opportunities to shift young buyers' focus from price alone to overall value, especially since CDK research suggests they’re already willing to pay for additional coverage. 

Dealers Need To Bridge the Knowledge Gap

Dealers are in a prime position to reduce car-buying anxiety by presenting CPO programs that address the very concerns driving protection product purchases. For buyers priced out of new vehicles but wary of the risks associated with traditional pre-owned cars, CPOs provide the ideal middle ground. This is a chance to educate a new generation about the full range of options available to them. 

Dealers should introduce education early and reinforce it often, meeting buyers where they are in the journey. Digital retailing tools can highlight the differences between CPO and non-CPO vehicles — side-by-side benefit comparisons, cost breakdowns and links to dealership blogs on CPO programs can capture attention online. When buyers arrive at the dealership, reinforce those benefits or present CPOs as an option to allow them to engage more confidently and ask informed questions.