Almost all car manufacturers have certified used car programs.
Car manufacturer set
guidelines for dealers in selecting and refurbishing used cars so
that vehicles offered under the Certified program meet a higher
standard.
If you decide to buy a certified car be prepared to pay more
for it. Dealers typically report spending $1,000 to $1,200 per
car in reconditioning costs on certified used cars. For comparison,
those same dealers normally only spend around $400 per car for a
non-certified car.
In addition the dealer must pay the carmaker a flat fee for each
car sold under the certified program. The amount varies by brand,
but typically costs the dealer around $400. Be assured they will
pass these costs along to consumers.
So is a certified car worth the extra money? It depends on how
much more you have to pay. Everything else being equal a certified
car should be no more than 5% to 8% more than a non-certified car
with similar mileage.
Buyer Beware: Some dealers will try to scam you by claiming that
a car is a Certified Pre-Owned car when it's not. Before you pay
extra money for a certified car make sure that you are getting what
you pay for. Ask to see all service and maintenance records on the
car. The file should contain all records pertaining to the car's
certification inspection and reconditioning. Note the technician's
checklist to see if it indicates that all required services have
been performed. Make sure that any required signatures are there.
Make sure that you are familiar with the certification
specifications set by the vehicle manufacturer. The dealer should be
able to provide you with a publication from the manufacturer that
details what requirements the car must meet in order to be sold as a
certified pre-owned vehicle.
Verify that the car meets these requirements. You don't have
to be a mechanic, just use your head. If the carmaker states the
car must have 4 matching tires, verify that the tires are all the
same brand and type. If they specify the car must have new floor
mats check the mats. If you find more than 1 or 2 discrepancies the
car probably hasn't been reconditioned to the standards mandated by
the manufacturer. So why pay extra for it? Remember, use your head.
Watch out for dealers who say "just bring it back and we'll
certify it later." Not only is this a violation of most auto makers
policies, but you are not going to get a very thorough job of
refurbishing the car after you've already bought it.
It's a good idea to run a CARFAX report on any used vehicle
before you buy it. Unfortunately, the CARFAX will not confirm
whether the car is actually a Certified Pre-Owned vehicle. It will,
however, reveal if the car has ever been wrecked, flooded, stolen,
or had it's odometer rolled back. The CARFAX report will also reveal
how many owners the car has had. So if the dealer claims you are
buying a one owner car that was traded in by a local buyer the
CARFAX can confirm it.
A Certified Pre-Owned car can be a great value when the
manufacturer's inspection and service procedure has been followed.
As long as you don't have to pay an exorbitant premium for it. In
many cases you'll actually be better off buying a non-certified car,
and using the money you save to get a discount extended warranty.
After all, not everyone needs new floor mats.
