The “Sleazy Used Car Salesman” with slicked-back hair, a tacky suit, and plastic grin has been a stereotype for years and has been overused as a comedy trope. While that image may have been based on the truth at one point in history, it’s not nearly as common today. Likewise, the assumption that purchasing a used car would be a headache — with horrible finance terms for an unreliable, worn-out vehicle — is a thing of history. In the past 10 years, Certified Pre-Owned cars have become much more popular as shoppers want more vehicle for their dollars.
The first certified pre-owned programs began in the 90s by luxury car brands as a method to earn more on lease returns and trade-ins. The cars were tested for safety and trustworthiness issues and the ones that met the manufacturer’s standards were certified and made as an option for special finance and warranty offers. Since that point, nearly all automakers have adopted certified pre-owned programs with their dealers.
There are advantageous benefits to buying certified pre-owned automobiles. Nearly all of them are low-mileage, only a few years old, and still have time and mileage on their factory warranty. Because of this, buyers have the reassurance that their automobile is going to be dependable. Also, since many of the cars are lease returns, the selling dealer typically has a history with it. Most car companies also offer special finance rates on certified pre-owned autos, saving buyers money on their car loans.
Nevertheless there are a few factors to ponder when looking out for a certified pre-owned vehicle. Since these are programs set up by different manufacturers thru their dealers, the standards for “Certified” can vary largely from dealer to dealer. Also, some third party companies may offer a “Certified” program that is simply an expensive extended warranty. A clever method that will trick gullible patrons.
For most customers and dealers, the certified pre-owned vehicle is a win-win. The dealer gets about $1300 more per car than the same model without a certification. The buyer gets a trustworthy automobile for thousands less than would otherwise be spent on buying a new model.
Harold Collin Smith is a professional in finance, leasing, and popular car brands. He has done numerous amounts of consulting work for the Asian car companies and writes general info articles as a hobby.
