Certified Used Cars. Worth the Extra Money?

Removing much of the risk of buying or leasing pre-owned cars
A few short years ago there were only a handful of used car dealers who offered "certified cars" for sale. Now almost every major automobile manufacturer's dealers offers certified cars and sales are increasing every year.

Why all the excitement? In short, it's about reduced risk. Most used car sales are sold "as is" and the buyer takes his chances. Certified pre-owned car programs offer less risk and greater peace of mind — for a price.

What is a certified used car?
A certified used car has been inspected and repaired according to manufacturer specifications before being placed on a dealer's used car lot. Although manufacturer's programs vary in specifics, all are fundamentally the same.

Before a vehicle can be certified, it must be a late model, have low mileage, and have no major damage.

Then each vehicle is inspected according to a detailed checklist that may contain 150 or more points of inspection, including engine and transmission, lights, airbags, power equipment, fluids, exhaust system, suspension, brakes, battery, tires and wheels, paint, trim, windows, doors, belts, hoses, alarm system, and more.

Even less critical items such as wipers, mirrors, interior lights, radio, gauges, and carpets can be on the list. A road test is typically performed to make sure there are no noises, vibrations, and squeaks that need attention.

Certified pre-owned cars are typically offered with warranties, although the type of warranty and coverage can vary by manufacturer. Some simply extend new-car warranties on their certified vehicles. Others have a separate warranty that can range from 3 months to 5 years or more, but is often specified as time from original new-car in-service date.

There is also usually a mileage limit that generally ends at 100,000 miles, but could be less, depending on the program.

Some certified used car programs also provide for road-side assistance and return policies.

What do certified cars cost?

Dealers are motivated to sell certified cars because it makes customer happy — and because they make a larger profit than on non-certified cars. Dealers must spend time and money doing certification inspections and repairs. And extended warranties cost money.

Therefore, customers who buy certified used cars can expect to pay a somewhat higher price for the extra peace of mind. The fact that sales of certified cars has been steadily increasing says that many automotive consumers consider it a price worth paying.

What to watch for in car certification programs
This article has been about certified pre-owned car programs offered by new-car dealers who also sell used cars. These programs are backed by major car manufacturers who provide dealer training, set standards, set policies, and back up warranties. Not all programs are alike, so make sure you understand the details of any program you may be considering.

There are also independent used-car dealers who offer such programs, but be aware that these programs are not sponsored by a major automaker and may not be of the same standards. Therefore, use caution when buying "certified cars" from independent used-car dealers.

Additional used car advice is available at Used Car Advisor.

For more, see LeaseGuide.com