Certified Pre-Owned Vehicles
What does the term "certified" used car mean?
A certified pre-owned vehicle is a car that has come back in as a used car to the dealership, has gone through an additional process or inspection from the manufacturer--designated process by that manufacturer--and then it's allowed to be sold as something almost better than used. It's been “certified” that the factory has looked at the vehicle, they've identified any faults and have corrected them. In many cases, they'll add additional warranty onto the vehicle as a certified vehicle. The flip side of that is that you may pay a little bit more for it because it has that additional backup. The essence of a certified pre-owned vehicle is that you're getting the used car price with a new car experience.
What are the advantages of buying a certified used car?
A certified used car is very important to customers who are looking for the savings of buying a used vehicle, one that the previous owner has taken the bulk of the depreciation on. However, they're also looking for that comfort, that piece of mind, that they've got a vehicle that's been professionally inspected by the dealership they're buying the vehicle from. If there's any problems with a certified car, they know exactly who to speak to. A certified car means you have the advantage of the additional warranties and features. It's that new car experience with the used car price.
What is a "pre-owned vehicle"?
A certified pre-owned vehicle is a vehicle which the manufacturer or the dealer has taken back in, maybe as a trade in or an end of lease vehicle. A certified pre-owned vehicle will have been run through a battery of tests, had a special warranted applied to it, along with other features such as some special financing and/or a return exchange provision. Basically, a certified pre-owned vehicle is a car that a person can buy which is used, so the price lower, but also has that new car peace of mind that, because of the warranty and the signed-off inspection, the vehicle has been thoroughly gone over to to make sure it's as close to new as possible. In order for a vehicle to be certified by a particular brand, the inspection, and all work on a vehicle to bring it back up to new car level, has to be done by an actual certified mechanic, from that particular dealer or from that brand.
Who performs the certification of the car?
Certified pre-owned vehicles are all inspected by the dealership's mechanics, and they are all going through a process which has been ordained by the manufacturer. If all the steps are passed, then that vehicle can be considered a certified vehicle by that particular manufacturer or brand. If you're considering purchasing a certified pre-owned vehicle, make sure the vehicle has been certified by the manufacturer. The other programs have some degree of assistance, but you always want to make sure you've got that manufacturer backing for the vehicle. Therefore it's important that as a consumer you make sure you see a copy of the inspection and assure yourself that the vehicle has been inspected and warranted by the particular dealership staff.
Are there advantages to buying a used car from a new car dealership?
The advantages of buying a used car from a new car dealership are that you're getting that new car experience. Essentially, you'll have on-sight financing if you have not arranged that on your own. You're going to have the professional environment with professional sales people to negotiate with. There are some of the creature comforts of using a new car dealership to buy a used car. You're going to have service facilities right there that you might have a previous relationship with, that you'll be able to continue working with, which is an advantage. Sometimes, the pricing can be sharp, if the person or the dealer brought in that vehicle as a trade and was able to get a very low price for it. This way, they could pass the savings on that used car on to you. There are some advantages to buying a used car from a new car dealership.
What is a "program car"?
A program car is a vehicle that's been either used by staff at the dealership, or maybe a rental car, or a car used by insurance companies. It's basically a vehicle that has never really been owned and registered by a private owner. It's been owned or used by a company, maybe in a fleet environment, and therefore can be sometimes seen as a good buy when it comes out of the program as a used vehicle. My personal view is that it's probably something to avoid because it's been driven by somebody who's only seen the car as an appliance, a way to get from point A to point B and they haven't probably taken the best care or applied the best maintance schedule to the vehicle. You could possibly have a much bigger risk of running into wear and tear issues down the road with a "program car".
