(ARA) – Used Cars. A simple term that has a less than positive
meaning for most car buyers. Conventional wisdom says that buying
a used car is buying someone else’s problems. However, as new
car quality has gone up, the risk of buying a late model used car
has gone down. In fact, the automotive industry doesn’t even
call them used cars anymore. The term to look for now is Certified
Pre-Owned, or CPO.
“There
is a growing market in this country for used vehicles that have been
put through a Certified Pre-Owned program. CPO vehicles give the consumer
a chance to buy the latest models, often only two or three years old,
at a big savings over a new car. So, when you buy one, you’re
really doing yourself a favor,” says John Davis, host of MotorWeek,
the longest running weekly automotive show on television.
More
than a third of all late model used cars and trucks sold last year
-- nearly 1.2 million vehicles --- came with a Certified Pre-Owned
designation. They are typically vehicles that have low mileage, and
have been put through a battery of tests to make sure they are in
tip-top condition. Vehicles that fall into this category are mostly
just off-lease, secured from factory executive car auctions, from
rental fleets, or the very best trade-ins.
“A
new car depreciates by 15 to 20 percent the moment you drive it off
the lot,” says Davis. “If you buy one that’s Certified
Pre-Owned, you avoid taking the initial depreciation, yet have an
almost new car with a strong warranty and in some cases a better warranty
than a new one. Smart consumers can think of these vehicles as the
best and brightest in their class.”
According
to CNW Marketing Research, Inc., one can expect to pay a premium of
between four and seven percent for a vehicle with the Certified Pre-Owned
designation. “They may cost a little more than you’d expect
to pay for a used car, but when you look at all the checks and balances
performed and the extra warranty, it’s easily worth it,”
says Davis.
Among
the benefits, not just some, but all vehicle parts that are even moderately
worn have been replaced. Many Certified Pre-Owned cars come with new
brake pads, hoses, accessory belts, wipers and batteries. Their engines
and transmissions have been checked and overhauled if necessary; minor
exterior damage -- like nicks, dings and tattered trim -- is repaired
or replaced; carpets and seat upholstery are shampooed or cleaned,
and if they look less than new, are replaced.
Beyond
that, certified programs provide additional warranties, often up to
100,000 miles, and may also include perks like car-club style roadside
assistance. This kind of warranty actually exceeds the coverage offered
by the factory when it was new. “Certification programs increase
consumer confidence about the quality of a used vehicle,” says
Scott Weitzman, senior director of retail programs for the noted automotive
polster, J.D. Power and Associates.
But,
don’t just buy any vehicle that is labeled Certified Pre-Owned.
The best CPO programs are found only at new car dealers, with repair
requirements and warranties backed by the factory. Also, ask to see
the checklist on the car or truck of your choice so you will know
exactly what has been serviced.
“Simply
put, purchasing a Certified Pre-Owned vehicle is really a win-win
situation for everyone. Manufacturers make money on vehicles they
had in fleets or on lease, dealers increase their income percentage
compared to new car sales, and customers walk away feeling better
about some of the built-in guarantees,” says Davis.
For
more information about MotorWeek log onto pbs.org/motorweek.
Courtesy
of ARA Content
