One of the surest ways to get a quality used car in Utah and have it protected if anything goes wrong, is to purchase a Certified Pre-Owned(CPO)
vehicle. 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. This may give
some in the market for a used car a peace of mind. 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 Certified Pre-Owned Cars
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, 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. Only vehicles that have had no
major bodywork from prior accidents are used.
Some programs offer cash incentives, low interest loans, and an exchange policy.
Finance and lease deals are being extended to a used vehicle. This was virtually unheard of in the past, and is what really separates
certified pre-owned vehicles from other used cars. This new option for used cars is one of the reasons that has persuaded new car buyers to
enter the used car realm.
Cons of Certified Pre-owned Vehicles
The certified vehicles are more expensive. 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.
A non-certified model could save you hundreds or even thousands by passing on the certification warranty and accepting a few extra blemishes.
This is especially true since any late-model used car is likely to be in good shape, certified or not.
Be informed on the points of the inspection
Each program gives anywhere from 75 to 140 points of inspection on a used car. You should assume that the vehicle has been refurbished
in these areas if it passed the inspection through to certification. 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:
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The VIN Inspection, which includes emissions regulations, any possible recalls, and VIN code issues.
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Road Test (transmission issues, clutch, steering, brakes/ABS, and gauge performance)
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Exterior Check (frame/ past accident damage)
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Interior Check (Airbag functions, interior light function, audio system, etc.)
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Powertrain, looking for any fluid leakage, oil issues, timing belt and cylinder efficiency
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Fuel Systems, which covers the fuel lines, the pump, and oil pressure
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Suspension (alignment, tire wear, tie rods, ball joints)
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Brakes (hydraulics, brake lines, rotors)
Important notes about the warranty
Read the certification benefits carefully. Find out what the warranty covers and whether you'll need to pay a deductible for qualifying
repairs.
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.
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.
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.
Negotiate the Price of Your Certified Vehicle!
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.
Final Thoughts
Certified Used Car purchase rates 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. Certified Used cars
are here to stay for the future, they give 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.