A Certified Pre-Owned (CPO) Wrap Contract for a vehicle is an extended warranty or service plan that provides additional coverage on a Certified Pre-Owned vehicle beyond the standard manufacturer’s CPO warranty. This contract is designed to offer extra protection against unexpected repairs and can help maintain the vehicle’s value and reliability after the original CPO coverage expires.
Key Benefits of a Certified Pre-Owned Wrap
- Extended Coverage: The CPO Wrap Contract extends the coverage of a vehicle’s original factory warranty after the manufacturer’s CPO warranty ends. It can include protection for major mechanical components like the engine, transmission, and electrical systems, as well as coverage for parts that may not be included in the original CPO warranty.
- Coverage for Repairs: This contract can cover a wide range of repair costs for the vehicle, depending on the terms of the contract. It’s designed to protect against the high costs of major repairs or breakdowns that may occur after the CPO warranty has expired.
- Eligibility: The contract is available for vehicles that are still within a certain age and mileage range, and are certified as “pre-owned” by the manufacturer or dealership. CPO vehicles typically undergo a detailed inspection process to ensure they meet specific quality standards.
- Additional Benefits: Some CPO Wrap Contracts may include added perks such as roadside assistance, rental car coverage, or trip interruption benefits, providing peace of mind in case of breakdowns or emergencies.
- Duration and Mileage: The CPO Wrap Contract usually lasts for a specified period or until the vehicle reaches a certain mileage, whichever comes first. It is often offered in various term lengths, such as 1 to 3 years, or up to a set number of miles.
- Cost: The cost of the CPO Wrap Contract is typically based on the age, model, and mileage of the vehicle, as well as the extent of the coverage. It is usually an optional purchase and may be offered at the time of the vehicle’s purchase or later.
- Exclusions: Like other extended warranties, the CPO Wrap Contract typically excludes coverage for routine maintenance (such as oil changes or tire rotations), cosmetic damage, and damage resulting from accidents, misuse, or neglect.
A Certified Pre-Owned Wrap Contract provides additional protection for a CPO vehicle by extending coverage for major repairs after the manufacturer’s original warranty expires. This offers vehicle owners peace of mind and helps cover unexpected repair costs, ensuring the vehicle remains reliable and functional for a longer period.
