Benefits of Certified Pre-owned Cars

Earlier, used cars in America were considered to be a mere metal heap set to roll on the roads. Most of them were wary of buying a used car. But certified pre-used cars have set the ball rolling for the second-hand car market in U.S.A. These cars are quite popular today.

The sale of these cars increased by 132 percent from 2001 to 2006. Currently, certified car dealers constitute a very small percentage of the overall car market, but it is increasing by the day.

Higher value for higher price

Certified pre-owned cars on an average cost approximately $1542 more than non-certified cars. Nonetheless, the extended warranty makes up for the extra money. It is any day better to pay a little extra money than to carry home a bunch of problems which non-certified cars bring with it. Manufacturers are increasing those warranties by the day. GM increased its warranty period from 3 years to five years, and from 36000 miles to 1,00000 miles from 2008. Chrysler has increased its warranty to 8 years and the number of miles to 80,000. Ford, Hyundai and Mazda have increased their warranty for miles to 1,00000.

Car buyers, by considering certified pre-owned cars can save thousands of dollars. For instance, one can easily avail a Lexus RX 400h for if he chooses to go for a CPO, for the price of a Toyota Highlander. What is better is that the coverage period of warranty will be similar.

The Process

There is no prescribed number of years which would determine whether a car will qualify for being a certified used car, but generally they are two years to six years old. The inspection is at least on a 100 points, but certain manufacturers like General Motors and Honda give even more. GM gives 117 while Honda gives 150. All the points are listed on a sheet called inspection sheet and you can ask for it before buying the car.

CPO – A boon for dealers too

Certified pre-owned vehicles bring much more profit than other used cars. They also sell much faster and hence over all much more beneficial for the dealers. The services and other benefits offered by these dealers to car buyers are almost as much as that provided to new car buyers. Financing is also provided for these cars, and the rate varies from model to model.

In 2008, according to IntelliChoice’s annual survey, the market competition for these cars is as much as new cars. While Volvo turned out to be the market leader, when it came to CPOs,

Cadillac and Jaguar came second. The 4th place was taken by Saab and the 5th place by Lexus. Volvo was the most popular because of the after-sales service offered to the buyer nationwide.

Availing CPO cars

Getting good used cars which they can send for certification is an issue with dealers. They mostly deal in pre-used cars from the brand they deal in, but occasionally trade in other vehicles too. Quite often they purchase from public sale or public auto auctions after their lease expire.

The demand for certified pre-owned cars is increasing by the day as there are very few used cars that are three to five years old and available for resale. Trading in certified used cars has become very profitable for car manufacturers and so they attempt at increasing their stock.

Brings peace of mind

Certified pre-owned cars come with warranty from the original manufacturer. The warranty is included in the purchase price and the buyer doesn’t have to pay extra for that. A warranty backed by a manufacturer has many advantages as compared to a warranty backed by a private dealer. Private dealers generally charge extra fees for the warranty. Secondly, a warranty supported by a manufacturer will enable you to get the service in any part of the country if your car breaks down when you have traveled beyond your city limits, but a warranty supported by a private dealer is generally confined to the dealership or only certain geographic areas.

There are certain things you need to keep in mind before buying CPO. You need to enquire if you need prior approval for towing the car. Also find out the time that the approval will take. Go through the contract properly to see if you have to adhere to certain tasks like getting routine check up or maintenance done as per the schedule mentioned. Always preserve your receipts as you may need to furnish them for reimbursement.

CPO vehicles are much more reliable than non-certified used cars. If at all any problem arises, then it is taken care of by the warranty. Once you have checked the inspection sheet thoroughly and looked at the vehicle properly, you can be rest assured that you aren’t carrying a bunch of problems associated with old cars back home. You will also end up saving a lot of money.