More Car Buyers Opting for Dealer Certified Used Vehicles
Manufacturer certified used vehicles have gained a lot of traction in the marketplace over the last few years, with many dealers finding that customers are increasingly comfortable with the quality of vehicle and the attendant warranties. The system has worked out so well in fact that many dealers are choosing to offer independent extended warranties on vehicles that may be uncertifiable by the automakers.
CNW Research has collected data for its May issue that suggests such deals are panning out for dealerships. They found that in 2007, dealer certified vehicles were commanding a premium of $681 over their non-cert counterparts, and sitting on dealer lots an average of 11 days less.
In our current economic climate, car buyers seem to be more and more inclined to take a risk on a pre-owned vehicle, and the small measure of security that certification offers makes the “used
Comments
Steve
Actually, I have purchased a CPO vehicle (a Saab 9-5 Aero) in the past. A few thoughts on my experience:
- I would never have contemplated purchasing a used car from a franchised auto dealer unless it was a certified car. What would be the point of paying anything extra for the pleasure of covering their overhead unless I had an extra warranty for my trouble?
- Pay close attention to the details of the CPO program... they differ quite a bit. Saab's coverage was excellent... essentially feeing like an extension of the factory bumper to bumper warranty up to 6 years-100k miles. I just took it to a Saab dealer and they fixed anytying that went wrong with no questions. Also, when I sold the car and it hadn't hit the end of the warraty period, the Saab extended coverage went with the car automatically. I think this made the car a bit of an easier sell. Some programs are little more than a weak 12-month powertrain warranty and may have transferability questions.
bepsf
Wish so many cars coming off lease after 2-3 years, a certified "pre-owned" car is definitely the way to go if you don't want to suffer immediate depreciation.
Mena
This will get even more popular as the years go by as Camry's and Accord's go north of $30k. Your average Joe isn't going to be able to afford a new car before too long.
Scratch
Unless there's a longer than usual warranty, there's no difference between a certified and uncertified used car. Exactly who is "certifying" it anyway? The same guy that's selling it to you? Hmmm.
SKCKR1
It wouldn't just be in the running, but it's what I bought. I got a 2006 Trailblazer LS 4x4 with 24k miles and nicely equipped. It has the "certified" bumper to bumper waaranty until 39k miles, and the 100k powertrain warranty. I got it for about $16k.
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