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About Certified Pre-Owned

Almost new and kind of old, and maybe a good deal

by Autobytel Staff
May 17, 2007
2 min. Reading Time

As shoppers have streamed into dealerships to take advantage of unprecedented rebate and finance offers, a new type of vehicle has emerged: certified pre-owned vehicles. And while it really isn't all that new, and has always been a choice for used vehicle shoppers, certified pre-owned vehicles have now become a strong option for new vehicle buyers, as increasing numbers of late model vehicles are being turned in, tested, and certified for quality. But what exactly is certification? Some would claim that it's a good way to buy an almost-new vehicle. Others grouse that it's a marketing ploy, a sleight-of-hand trick that gets you to pay for a useless piece of paper. Which is true depends on where you get your certified vehicle and who certifies it.

Technically, certification is the same thing as a warranty. A certified vehicle is one that has passed a series of published tests by a seller who is willing to support the inspection with a warranty. A good used vehicle certification bridges the gap between new and not-so-new, and provides security for buyers. In essence, it means that the automaker, or dealer, has inspected the vehicle and is comfortable offering you a warranty on its operation.

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Security, price and quality. A good certified program gives buyers the security of knowing that the performance of the vehicle they purchase is covered for a specified amount of time and miles. It provides this security, and enables buyers to buy an-almost new vehicle, at a price that is less than new but more than non-certified.Because certified vehicles must meet the standard defined by the certification inspection process, the vehicles usually have fewer miles and are in better condition.

They aren't new. From the used vehicle shopper's perspective, price is also a disadvantage, as certified programs increase the price of late model vehicles that probably don't need protection. After all, what's the point of certifying a three-year old luxury vehicle with 30,000 miles? In essence, certifying pre-owned vehicles is a way to add a warranty premium on a quality vehicle - the only kind, after all, that should be sold in the first place. Critics of certified pre-owned programs claim that it is really no more than a peace of mind premium.

Automaker programs usually offer better warranties and require more thorough inspections. Consider that automaker programs are really dealer and maker endorsed; a dealer usually has a choice whether or not to participate in the automaker's program. There are two basic types of certified programs: manufacturer-based and non-manufacturer based.

Manufacturer certifications are backed by the company that makes the car, and usually offer more in terms of quality and coverage. Manufacturer-backed certification programs are better than the non-manufacturer version because they have strict guidelines on what passes inspection - and which vehicles are worthy of inspection. Manufacturer programs offer factory-backed, nationwide coverage and are more stringent when it comes to the actual inspection.


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