ALT-1 Used Car Buying
Certified pre-owned vehicles are all the rage in dealerships across the nation, but what exactly does that mean and what are the pluses and minuses to purchasing one? What things do you need to be aware of before making your purchase? Is there really any advantage to buying one?
Automobile manufacturers know that in order to maintain their customer base, customers need to be able to trade their vehicles in at a high enough value to justify purchasing a new one. One of the things they came up with is the certified pre-owned program. The specifics vary from manufacturer to manufacturer, but it is essentially a manufacturer mandated vehicle inspection with minimum standards of mechanical condition, completion of required maintenance and cosmetic appearance in order to achieve certification. There is generally a manufacturer's extension of warranty beyond the end of the limited new vehicle warranty and often incentives to purchase including special financing rates. Incentives, warranty extension and more stringent standards of condition can make these vehicles very attractive to consumers.
Now that you know what a CPO car is and have decided that you want one, what information do you need to make your purchase? The best place to start is at the manufacturer's website. Compare warranties and buying incentives each are offering and decide which one best suits your needs. Most of them will provide you with a checklist of conditions they require for certification. You should also be able to find a listing of CPO vehicles available at your local dealerships. Be aware that the average CPO unit sells for $800 to $1,200 more than a similar non-certified unit, so judge the value of CPO accordingly.
The next research you should do is on the dealership you intend to purchase from. The manufacturer controls new cars, but the used car is certified by the dealership and is rarely ever checked by a manufacturer's representative. While most dealers are reputable, some may attempt to shortcut the process and put a less than premium vehicle on the lot. Use all the same precautions buying certified as you would buying any other pre-owned car. Most manufacturers require a Carfax or similar car report be run prior to certification so insist on seeing it. The good dealerships don't mind if you do.
The advantages to CPO are receiving a manufacturer's warranty that will be good at any dealership, a vehicle that has all of it's maintenance requirements up to date, incentives such as reduced interest rate financing and the advantage of buying a used car in like-new condition without the hefty sticker price of brand new. The main disadvange is the increased purchase price of a CPO unit. Which ever way you decide to go, make sure you do your research and you will likely have a good ownership experience with your new, if slightly used, car.
