Shopping for a used vehicle can be nerve-wracking even for seasoned veterans. Regardless of how well you know the mechanical workings of the modern automobile, buying a used car is always a gamble. If you’re one who likes to minimize risk, buying a certified preowned model can reduce some of the uncertainty.
Certified preowned vehicles are usually only a few years old and come with additional benefits that you don’t get with a regular used vehicle purchase. A certified preowned vehicle usually costs a little more than a typical noncertified used vehicle — between 4% and 5% on average, according to Edmunds sales data — but the added peace of mind could be worth it. Here are four aspects to consider before you buy a certified preowned vehicle.
Understand the extra benefits
Certified preowned cars are inspected by factory-trained technicians who spot and address mechanical issues, receive a light refresh, and come with a manufacturer’s warranty. These enhancements provide more reassurance that you’re getting a vehicle that won’t have problems as soon as you drive off the dealer’s lot.
Other advantages can include lower financing rates through the automaker, loaner cars during service intervals, and even roadside assistance. Finally, there’s proximity to the manufacturer. If problems arise, there’s a clear escalation path from dealer to automaker, increasing the odds of a quick resolution.
Compare different manufacturer programs
Certified preowned models are exclusively sold through an automaker’s franchised dealerships. When inspecting a car on a dealer’s lot, look for the certified program’s catchy name — L/Certified for Lexus, for example, or Ford’s Blue Advantage — on the sticker.
You won’t find these manufacturer-backed models on a competitor’s lot or at an independent or non-franchise dealer. But you may come across dealer-certified models. These are simply models that the dealer has put some work into, added a third-party extended warranty, and deemed “certified.” The manufacturer has no stake in these models. They can still be decent cars with warranty reassurance, but they haven’t passed the same inspections and offer no recourse with the automaker.
Know that warranties are not created equal
Parsing the terms of warranty coverage is a tedious part of buying certified preowned. Fortunately, the terms are easy to find on most automaker websites. Honda, for example, offers one of today’s more generous certified preowned warranties, with up to seven years or 100,000 miles of powertrain coverage. General Motors, also a good program, covers the powertrain for just six years but adds a year of bumper-to-bumper coverage from the date of certified preowned purchase.
It’s important to know the details to avoid surprises. Powertrain coverage typically covers the engine and transmission. So while a leaky window seal, cracked windshield or other normal wear parts won’t be covered, they’re far less expensive to fix than, say, a faulty transmission. And if you catch a small problem early enough, a dealer might even fix it as a goodwill gesture.
Consider taking extra inspection steps
Most certified preowned buyers will reasonably expect minimal hassle from their pricier purchase. And in most cases, they’ll get it. But a certified preowned car is still a used car, one subject to the intangibles of its earlier service life. A certified preowned certification doesn’t guarantee a mint or even near-mint model.
While dealers can’t legally sell cars with frame damage or salvage titles as certified preowned, they’re also not required to disclose minor accidents or cosmetic bodywork. It’s always a good idea to get a vehicle history report from providers such as Carfax or AutoCheck to check service history, ownership intervals, and whether the car was privately owned, leased, or came from a rental fleet.
If you are concerned that a certified preowned car might have issues, consider bringing a mechanic with you to inspect it before you buy. They may be able to spot any issues that were overlooked during the dealer inspection.
Edmunds says
Certified preowned cars cost a little more, but the convenience, extra benefits and peace of mind are often worth it. Just remember that smaller issues — a glitchy touch screen, for example, or interior rattles — may not show up until later. Our advice: give the car a good walk-around before signing the papers and keep the warranty details handy, but don’t sweat the small stuff. Even new cars have problems.
Picture Courtesy: Edmunds via AP
