What Is a Pre-Owned Car?

You may hear the term when watching television or perhaps while you are shopping for new and used vehicles, but do you really understand what it means to purchase a certified pre-owned car? We are breaking down what a certified pre-owned car is, the pros and cons of purchasing one and tips to make sure you find the new car for you.

It is often said that certified pre-owned vehicles are new cars at used car pricing. In the current economic climate, this may be the wisest purchase you can make. Cars become certified pre-owned vehicles because they have a warranty which is backed by the manufacturer or the dealership. If it is a factory-certified car, the manufacturer is essentially using the dealership to inspect the car and determine if the vehicle is worth certifying. The dealership must inspect the used car, make the necessary repairs and offer support for the vehicle repair during a certain period of time.

Not all used cars qualify as certified pre-owned ones, so be sure to check with the dealership about the car you plan to purchase. Terms to certify a car will vary from company to company, but most include a 100 point inspection with trained technicians. After the car is deemed worthy to certify, it will get a new warranty to take effect when the old warranty expires. This new warranty offers coverage for a certain number of miles or years.

There are several clear benefits to purchasing a certified pre-owned car. You will have peace of mind knowing the car has been inspected, repaired and guaranteed for a certain length of time. Without the certification, you would have to spend extra time and money to have your potential new car inspected by a mechanic. You will also avoid the upfront depreciation costs that were incurred by the previous owner. New cars can lose between 20 and 40 percent of their sticker price in the first three years of ownership. Luckily, you can side step this by looking for a certified pre-owned vehicle.

If you are ready to start shopping, there are a few things to keep in mind. Start with lots of research! Look for information about the vehicle’s condition, mileage, optional equipment and more, just as you would look at this information when searching for a new or non-certified used car. Ask the autodealer if you can see the certification checklist for a better idea of what was look at and what was not. You can probably also find this information on the car maker’s website.

Next, make sure the warranty is clear and in writing. Often the warranty is the main reason a person will purchase a certified pre-owned car. Warranties will differ from car maker to car maker and they can easily become confusing when you view a lot in a small period of time. Before you settle on your new car, read the fine print in the warranty and make sure you understand what is covered. Some are good for powertrain only, while others are bumper-to-bumper. Some last for a longer period of time, while others are transferable. Needless to say, it is important to do the most research on the warranty.

Article Source: http://www.essentialrelease.com

Lisa Cryder, Lebanon Ford Lincoln Mercury a Blue Oval Certified and Ford Certified Pre-Owned Vehicle Dealer.

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