Richmond Toyota

All about Certified Pre-Owned Vehicles

Many hesitate to buy a used car because they are wary of unexpected problems and expensive repairs.  One of the surest ways to get a quality used car and have it protected if anything goes wrong, is to purchase a Certified Pre-Owned(CPO) vehicle.  This is a great way to give used car buyers a true peace of mind.  CPOs go through rigorous inspections (75 to 305 inspection points), and any problems that are found are fixed before the used car is put on the lot.  If anything does go wrong with the car within the period of the warranty, it will be fixed for free.  The trend of CPOs has been growing year by year and is quickly spreading to the majority of manufacturers who market their cars in the U.S.

Pros of buying a certified pre-owned vehicle

Probably the best reason for purchasing a Certified Pre-Owned vehicle is that most new vehicles depreciate at a rate of about 20% per year. Considering this, you will still be saving and get a good value.  The additional cost involved in the inspection, refurbishment and warranty may still make for a worthwhile purchase. Certified used cars include only vehicles that are under 5 years and have a mileage of under 100,000.  This means they will have relatively up to date safety and technology features.  A CPO also guarantees that the vehicle has had no major bodywork from prior accidents are used.  There are new ways to make a CPO more affordable, some programs offer cash incentives, low interest loans, and an exchange policy.  Financing and lease deals are often offered for a CPO.  Financing on a used car was virtually unheard of in the past, and is what really separates certified pre-owned vehicles from other used cars. 

Cons of buying certified pre-owned

These certified vehicles are more expensive, so make sure that you always stick to your budget.  The added value of the refurbishing and warranty creates an opportunity for dealers to sell these used cars at a higher price.  Certified used cars that sell in the $10,000 to $20,000 range are estimated to be $500 to $1,000 more expensive than regular used cars.  Late model vehicles are often in good shape, certified or not, so a non-certified model could save you money by accepting a few extra blemishes.

Know the points of the inspection

Each program is different, but generally gives anywhere from 75 to 140 points of inspection on a used car.  Looking at these points you can identify any major work that has been done, that otherwise would have been very expensive to fix.  Some of the key inspection points are: The VIN Inspection, which includes emissions regulations, any possible recalls, and VIN code issues; the Road Test (transmission issues, clutch, steering, brakes/ABS, and gauge performance); Fuel Systems check, which covers the fuel lines, the pump, and oil pressure;  Interior Check (Airbag functions, interior light function, audio system, etc.); Brakes (hydraulics, brake lines, rotors);  Powertrain, looking for any fluid leakage, oil issues, timing belt and cylinder efficiency; Exterior Check (frame/ past accident damage); and Suspension (alignment, tire wear, tie rods, ball joints).

Read every line of the warranty

Know every aspect of the certification benefits. Find out what the warranty covers and whether you'll need to pay a deductible for qualifying repairs.   Find out where you must bring the car for warranty work - the original dealer, any same-brand dealership or some type of independent repair shop. Ask what you're required to do in emergencies if no dealer is nearby.  When reviewing the warranties offered, research whether the particular model has a history of maintenance issues or transmission failures and decide if it is a good warrant from that perspective. If the make of the vehicle is known for quality and low maintenance, a shorter warranty may be fine.  Still negotiate the price of the vehicle. You can get an idea what a non-certified vehicle of the same age and mileage is worth through various websites or the local classifieds. The price for a certified vehicle with a warranty is likely to be higher, but the figure will give you a starting point for negotiating.  Note whether the certification is transferable if you sell the car and, if so, whether there's a transfer fee.  Most programs offer an extended warranty beyond the CPO warranty, but each program differs in cost and features.  Find out the details before you decide to add this on.

Certified Pre-Owned purchases are growing at a great percentage.   Although not everyone will find the added price worthwhile, they offer an excellent new alternative to buying new, especially with the economy the way it is today.  Many organizations have come on board for CPOs, including the more traditional automotive manufacturers, but also dealers and third-party suppliers.  The certification process gives used car consumers an option for warranties and financing, but most importantly, a peace of mind that is unique throughout the used car buying process.