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Certified Pre-Owned Cars

How I Got More Car for My Money

by R. Cory Fossum

After ten years and over 100,000 miles, the time had come to replace my beloved old car. Since I'm always on the prowl for a deal, a friend of mine suggested that I look into buying a certified pre-owned (CPO) vehicle. Not only would I save money, he said, but I would also be able to get a lot more car for my money. So I did my research, and what I discovered thrilled me.

Turns out that buying a CPO vehicle offers all of the financial benefits of buying a used car. However, it also comes with a manufacturer's warranty and has passed a rigorous 100+ point inspection. So I would be able to avoid the uncertainty that can sometimes accompany buying a used car, and still get a relatively new car with low mileage. My friend also pointed out that I would be able to deflect a large chunk of the depreciation costs that force new cars to lose their value so quickly.

I wondered how this was possible. He explained that once a car is returned from a lease or offered as a trade-in, the dealership evaluates its potential through a set of its own standards and conditions. If these conditions are met, the car is put through a detailed series of manufacturer-specified service checks. By the time we see a CPO vehicle, it has been completely examined and fixed up by qualified technicians, and covered with a manufacturer's warranty.

At first, buying a certified pre-owned vehicle seemed like it might be more expensive than purchasing its used counterpart. But the more I thought about it, I realized that I would actually save money through significantly lower service bills. Since a CPO vehicle is already in excellent condition, I wouldn't have to worry about paying to get it up to speed or fixing a defect that the seller failed to mention. Plus, I'd be getting a manufacturer's warranty that I just couldn't get if I bought a regular used car.

Speaking of warranties, I learned that the ones offered by a manufacturer and dealerships are not always equal. Since a manufacturer's corporate reputation is on the line, the standards it sets for vehicle inspection can sometimes be higher than those of a dealer. Plus, with a manufacturer's warranty, I wouldn't be tied to having to use a specific dealership in the event that I moved or had to relocate for business. I made sure to carefully evaluate each warranty that I read.

I also learned to be very cautious about "certified" used cars that come with a third-party warranty. These warranties are simply extended service contracts without the stamp of approval of the manufacturer. Aside from requiring varying deductibles, some third-party warranties would have required me to pay for services up front and wait for reimbursement. This works great for some, but I really like the security that comes with a warranty from a manufacturer or dealership.

Price and security are not the only advantages that come with buying a Certified Pre-Owned Vehicle. As I did more research, I noticed that some dealerships were offering new car financing rates as incentives to buy their CPO vehicles. This had the potential to save me hundreds-even thousands-of dollars in interest over the life of the car.

Plus, some dealerships said I would be eligible for many of the perks enjoyed by new car customers. These include service loan cars, shuttle services, roadside assistance, and free maintenance. Once I found this out, I always made sure to ask if these features were included in the manufacturer's warranty.

So if you're in the market to buy a new or used car, do yourself a favor and explore the possibilities of a Certified Pre-Owned Vehicle. I found that I could save a significant amount of money compared to buying an equivalent new car. Plus, I could enjoy the security of a manufacturer's warranty that I just wouldn't be able to find with a used car.

But best of all, I was able to get more car for my cash. And since my CPO vehicle has been inspected to meet the manufacturer's specifications, I feel much more secure and confident that there will be no surprises down the road.

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