What is a Certified Used Car?
Someone in the market for a used car has probably seen many advertisements and indications that a used car is a “Certified Used Car.” But what does this mean to a consumer? Certified used car programs appeared in the mid-90s as a way to separate the used vehicles in good condition that were returned or traded to dealerships from those that were in worse condition.
Typically, this is a how a certified program works. A dealership evaluates the condition of a used car after it has been returned at the end of a lease or traded in. Often, the manufacturer of the car will have its own point system in order to evaluate whether or not the used car can be considered certified. This system is based on things like the age of the car. Often, a certified used car can’t be older than five years. The certification is also based on things like mileage and previous ownership. The dealership will then evaluate if the cost of repairs to get the vehicle on the certified list is worth it. If not, the car will not be certified.
There are different types of certifications. Most manufacturers have their own point system but many dealerships do also. Don’t buy a car just based on the fact that it is advertised as certified. Make sure you know what program the car has been certified by. If the car is certified by the dealership, ask to see the point system that car was ranked on. In most cases, buying a certified car is a safer bet than buying from a private owner.
Are Certified Used Cars Better?
Are certified used cars better? In order to answer this question, let’s take a look at the description of what a “certified used car” is and what it means to you.
To begin with…
When someone goes to buy a new car, their old vehicle is usually traded in to the dealer. These previously owned cars become a part of the dealer’s used car inventory.
Back in the day, used cars were more likely called “junk” and people were hesitant to purchase “used” thinking that this meant the car had been driven until the end of its life. Remember the life of cars in the past was a lot shorter than they are today.
Back in the day dealers had a hard time selling “used” vehicles because people were afraid to buy these used vehicles.
The automotive industry got smart and started calling these cars “pre-owned” instead.
To further explain…
Through the wishes of auto consumers, Mercedes Benz began inspecting and repairing minor repairs before re-selling their high end pre-owned cars. The dealer would inspect and repair these vehicles at no cost to the consumer and then add a warranty to the used vehicle and classify them as “certified used” or “certified pre-owned” vehicles.
Soon other dealers began using the same process of “certifying” their used car brands.
Now, used cars became of more value to the consumer by giving them peace of mind and confidence they were getting a quality car and a warranty, should something go wrong down the road.
There are two different types of Certified Used Cars:
Factory Certified – This means that the factory where the car was made has inspected the vehicle prior to the sale. Manufacturer certified technicians will have performed a thorough, detailed inspection and upon their decision the car will be stamped “certified used car”. With a factory certified car, the factory extends a warranty to you at no extra charge to you.
Dealer Certified – This means that the dealership has had their certified mechanics do an inspection of the vehicle prior to the sale. In this case, it is up to the dealer and their technicians to deem the vehicle “certified used car”. In this situation, the dealer would sell you and extended warranty, costing you money from your pocket.
So are certified used cars better?
Let’s take a look at the advantages of purchasing a certified used car…
Purchasing a quality used car means that you are able to buy a used car and avoid the depreciation that happens with a brand new car. This saves you money.
And, you have peace of mind because the car is covered under a warranty should the car give you troubles shortly after purchasing the vehicle.
With certified used cars, often times you can go for all the bells and whistles! You can look at pre-owned cars that have the extras that you want in a vehicle. Maybe it is added running boards on a pickup, or perhaps the sunroof on the sedan of your choice.
When purchasing brand new, these additions can add up and become quite costly compared to purchasing a used vehicle.
The bottom line is…
Are certified used cars better? Absolutely if you want confidence that you have purchased a car that has been inspected and repaired with added peace of mind through the warranty.
Certified used cars are a wise decision if you are in the market for a new used car.
When the car buying process gets to be this easy, it’s all about you and the things you love about your next set of wheels.
Buy Certified Used Cars!
One of the best car buying tips for anyone is to check into certified used cars. Here is an example of a General Motors certified used car, it may differ from other manufacturers. A General Motors certified used car gets a strict 110 point inspection at the dealership from the tip of the exhaust to the cup holders and if there is the smallest of problems, it does not get certified until fixed. A certified used car has less than 60,000 miles and no more than 5 years old. A certified used car with GM receives an extra 3 month or 3000 mile warranty. If the car is under warranty when you purchase it, the certified warranty is added to the end. So instead of having a 36 month, 36000 mile warranty, the certified car has a 39 month, 39000 mile warranty. A certified GM car also receives roadside assistance just like a new car under warranty.
A little known fact about certified used cars is that you have 3 days or 3000 miles to determine if the car is right for you. If in this time period you decide you do not like the car, take it back to the dealership and find one you like better. A certified used car also has a sticker on the window telling that it passed the strict guidelines to become certified used, along with the market price clearly visible to avoid confusion. When you buy a certified used car you are in a better situation to trade more often and avoid hearing those dreaded words “upside down” by the dealer, which means you owe more than the car is worth. Before you buy a new car, check into your options on certified used, it might be exactly what you are looking for and not break the bank.
Five Reasons Why Sales Of Certified, Used Cars Are On The Rise
Certified used cars are all the rage in today’s market. After five straight years of sales growth, the market is poised to break new records in 2015. According to industry insiders, dealers should sell more than 2.5 million units this year. Why is this happening? Let’s find out.
As sales continue to rise, more dealerships are jumping on the certified pre-owned (CPO) bandwagon. Offered by automakers, these programs require the participation of sellers to reach the masses. In fact, it is up to each individual dealership to decide whether they want to certify their used vehicles or not. Because the profit margins are much higher for CPO vehicles than for ordinary second-hand rides, a growing number of dealers are signing up for these programs.
More than a quarter of all new vehicle transactions involve a lease. Because many of these cars and trucks were leased in the last few years, they are now returning to dealerships in record numbers. With an average age of three to five years, these now second-hand autos are eligible for CPO programs. Because demand for certified used cars is at an all-time high, dealers are expected to certify a much larger percentage of these vehicles than ever before.
Rising New Car Prices
As the economy continues to improve, consumers have more money to spend on big-ticket items. It is no surprise that sales of new automobiles hit a seven-year high in 2015, with 16.5 million, pristine autos sold. It is also no surprise that rising demand has resulted in rising prices. Although the same could be said for CPO vehicles, they are still about 40 percent cheaper, on average, than brand-new rides.
Aging U.S. Auto Fleet
Americans are driving their automobiles longer than ever. According to a recent report, the average age of U.S. passenger vehicles has reached a record high of 11.4 years. Although some of these autos end up at the junkyard when their owners give up on them, others make their way to used car lots. As a result, shoppers may encounter slim pickings when looking for a quality, second-hand auto in the coming years. Even today, many buyers invest in certified autos for that very reason.
The Power Of Advertising
After years of promising returns, many of the leading automakers are convinced that CPO vehicles are the future. As such, they are starting to invest heavily in them. General Motors is among the companies that recently poured big bucks into their certified used cars program. With increased competition, dealerships should be able to secure slightly better rates on the certification process. This should help them build larger inventories of these sought-after autos.
For all of these reasons and more, the future looks bright for certified used cars in America.
Advantages of Purchasing Certified Used Cars
Drivers who are in the market for a new vehicle have to decide whether to purchase a brand new model or one that’s simply new to them. Drivers who want the reliability of a newer vehicle but can’t fork over the cash should look into certified used cars, which are considered a safe, sound investment. These high-quality, pre-owned vehicles offer a number of benefits to buyers.
Extended Warranty Protection
Certified pre-owned cars (CPO) come with extended coverage warranties. Once the original warranty runs out, maintenance, repairs, and other costs may be covered under the extended warranty for a specified number of years or miles. These warranties often cover specific components of the vehicle, such as the engine and drive train system, so it’s important for drivers to familiarize themselves with their warranty to understand which repairs are covered and which aren’t.
High Resale Price
Certified used cars are generally worth more than non-CPO vehicles, and this is because they are put through a very stringent inspection process. Not all vehicles pass the inspection; they must meet certain quality, condition, and mileage requirements first. Buyers who decide to sell their certified pre-owned vehicle could potentially get as much as $1,000 more compared to a non-CPO automobile.
A major advantage to buying a vehicle with an extended warranty is the peace of mind that comes along with it. Driving an unreliable vehicle is stressful for those who are constantly worrying about unexpected repairs, the costs of which can really add up. Many drivers find that it’s worth the price to pay a little extra for that peace of mind, knowing that the costs of major breakdowns and repairs will be covered. This doesn’t mean that breakdowns aren’t a risk with certified used cars, as they are still secondhand and could experience problems, but the inconvenience and costs can be minimized with a warranty.
Reliability of Inspection Standards
Despite the fact that there are always risks associated with purchasing a used car, certified pre-owned cars are more reliable. During the inspection process, the manufacturer-trained mechanics perform a comprehensive inspection that usually checks more than a hundred different components. If there are significant problems, the manufacturer has to invest more money to restore it to CPO status. For this reason, only vehicles in the absolute best condition make it through the inspection process. This should help drivers feel at ease because they know they’ve purchased a quality second-hand vehicle.
Advantages of Buying Certified Used Cars
The used car market has grown in leaps and bounds over the past couple of years. In recent times, it is not a very rare occurrence to come across a seller who is trying to dispose of a vehicle that is still on the original manufacturer’s warranty. If you are considering going for a used unit, it is advisable to opt for the certified used cars.
There are many advantages that come with opting for this option. Motor insurance is one of the highest costs of running any car. It will therefore come as a relief to know that certified used cars often come with comprehensive insurance coverage. This means, the cost of taking out the first cover has already been absorbed. Therefore, when the time to renew it comes round, you will not be treated as a new client. This in turn will translate to some cheaper premiums.
Due to the growing demand for certified used cars, vehicle manufacturers are setting up subsidiary arms to handle this emerging market. Due to the packages and guarantees that are offered, their popularity has increased in leaps and bounds. This translates to better services and options for the consumer. The main advantage of this segment is in the guarantee that the manufacturer gives to you.
It goes without saying that the biggest benefit of this system is in the quality of vehicle that one gets at the end. As a buyer, one is offered a unit that has been thoroughly examined. It is this meticulous check that gives the confidence to extend the warranty. This warranty is only given after certain standards have been met by the unit being checked out.
Another advantage is the fact that you have a test period within which one can return the car if they are not satisfied with it. This policy allows you to pick another one that you are comfortable with at no extra cost. The gambling feeling that normally accompanies vehicle purchases is therefore eliminated from the whole deal.
Depending on the company, this option makes one eligible to enjoy other benefits that are normally extended to owners of brand new vehicles. Road side assistance and free oil changes are just some of the perks that come with this option. In addition to all these, there is the added advantage of getting loans at a much cheaper rate than would otherwise have been extended to you.
Benefits of Buying Certified Used Cars
It is not usual for one to come around a used car that is sold with an original manufacturer’s warranty. This is where certified used cars come into play. For those who do not know, certified used vehicles tend to come with a comprehensive coverage that goes further than what the dealership characteristically offers you. Manufacturer’s certified car programs have now gained much popularity and can be found at many used auto dealers.
The biggest benefit that comes into mind about certified used cars is that you are getting a used car that has been meticulously examined and has been found to be so good in condition that they have received an extended warranty. In order to receive certified used cars warranty, the car needs to meet outstandingly high standards by the manufacturer of the automobile. What is interesting is that after attaining a certified used car, you have 3 days or 3000 miles to verify if the car is right for you. If during this time you find that the car is not the right one for you, you can always go back to the dealership and pick a better one. Also, a certified used car has a label on the window stating that the car has passed the stringent guidelines to become certified used, together with the market price evidently noticeable to avoid confusion.
Along with the warranty that is given, there are other benefits to attaining certified used cars. Certified used cars give buyers supplementary benefits that they usually only get when they buy a new car. These are inclusive of getting roadside assistance, lower loan rates, loaner’s cars throughout repairs, free of charge maintenance together with oil changes and inspections and also shuttle services.
Nevertheless, the most significant benefit is the warranty that you receive. When you acquire a certified used car you get a wide-ranging, long-term warranty that is also low cost which helps you save hundreds of dollars on your vehicle every single year. The enticement of free oil changes and examinations also play a role in making this deal a more appealing one.
But, when you look around for a certified used car, make sure you find a local dealership that has an extensive assortment of genuine certified used cars. After that, look for a sales person who knows what he is talking about when it comes to the car that you have chosen. Eventually, getting a certified used car is perhaps the best choice you can make!
Buying Certified Used Cars
Used cars seldom come with an original manufacturer’s warranty. However, certified used vehicles will come with an extended coverage that goes beyond what the dealership typically offers you. Vehicle manufacturer’s certified car programs are now being found at many used auto dealers.
Buying a certified car means that you are getting a used car that has been rigorously inspected and found to be in good enough condition to receive an extended warranty. Certified used cars have to meet exceptionally high standards by the automobile manufacturer. Because of their condition these cars get a extended warranty that has coverage beyond what you normally get with used car dealership warranties. This means that if repairs are needed they are covered for a longer period of time.
In addition to this warranty there are other benefits to buying certified used cars. Certified used cars give buyers additional benefits that they typically only get with new cars. This includes benefits such as roadside assistance, lower loan rates, loaners cars during repairs, free maintenance including oil changes and inspections and also shuttle services.
However, the biggest benefit is the warranty. When buying a certified used car you get a comprehensive, long lasting warranty that is also low cost so you can save hundreds of dollars on your vehicle each year. The incentive of free oil changes and inspections also make it more appealing to buy a certified used car.
When looking for a certified used car be sure to find a local dealership that has a wide selection of authentic certified used cars. Then make sure you get a sales representative that knows what they are talking about when it comes to certified used cars. You will find that you are getting a great deal when you choose to buy a certified used car.