Honda, Acura Launch Approved Pre-Owned Program for 10-Year-Old Cars

In an ominous sign for the Canadian automotive market, Honda Canada has announced that it will launch a used vehicle program first piloted by its American counterpart in the depths of the pandemic.

The “Approved Pre-Owned” program will work like the Certified Pre-Owned (CPO) program, but will include models that are up to 10 years old. Intended as a tool to attract “budget-conscious, first-time buyers” to the brand, the program has been announced as vehicle affordability woes preoccupy Canadians.

The new program covers any used Honda or Acura vehicle that is between six and 10 years old, as well as vehicles that are younger than that, but have more than 150,001 km on the odometer. Vehicles that are five-years-old or younger and have covered fewer 150,000 or fewer kilometres will continue to be sold under the CPO program.

The older, higher mileage vehicles will undergo a multipoint inspection by trained Honda and Acura technicians, and the vehicles will be reconditioned using Original Equipment Manufacturer (OEM) parts and standards.

Buyers will also get a Carfax Canada Vehicle History Report, so that they know exactly what issues and repairs a given vehicle has suffered or received. In addition, a limited warranty will help offer buyers of these older vehicles peace of mind. The 180-day/12,000 km powertrain warranty will be offered from the time of sale, and there will be a seven-day/1,000 km exchange window if a buyer decides a given vehicle isn’t for them. By contrast, vehicles that qualify for the CPO program get a seven-year/160,000 km powertrain warranty.

While the program will likely provide budget-conscious buyers with an easier path to vehicle ownership, the introduction of the Approved Pre-Owned program points to extreme market conditions. First seen in the U.S., the program was launched south of the border in 2022. At that time, dealers were struggling with a severe lack of new vehicles due to the COVID-19 pandemic, which pushed buyers into the secondhand market en masse, severely inflating the price of used vehicles.

Although the situation today is different, rising vehicle prices, a trade war, and consequent volatility in the market have had a significant impact on the Canadian automotive market and are making it harder and harder for consumers to buy a vehicle.