(ARA) – Used Cars. A simple term that has a less
than positive meaning for most car buyers. Conventional wisdom says
that buying a used car is buying someone else’s problems. However, as
new car quality has gone up, the risk of buying a late model used car
has gone down. In fact, the automotive industry doesn’t even call them
used cars anymore. The term to look for now is Certified Pre-Owned,
or CPO.
“There is a growing market in this country for
used vehicles that have been put through a Certified Pre-Owned program.
CPO vehicles give the consumer a chance to buy the latest models, often
only two or three years old, at a big savings over a new car. So, when
you buy one, you’re really doing yourself a favor,” says John Davis,
host of MotorWeek, the longest running weekly automotive show on television.
More than a third of all late model used cars
and trucks sold last year -- nearly 1.2 million vehicles --- came with
a Certified Pre-Owned designation. They are typically vehicles that
have low mileage, and have been put through a battery of tests to make
sure they are in tip-top condition. Vehicles that fall into this category
are mostly just off-lease, secured from factory executive car auctions,
from rental fleets, or the very best trade-ins.
“A new car depreciates by 15 to 20 percent the
moment you drive it off the lot,” says Davis. “If you buy one that’s
Certified Pre-Owned, you avoid taking the initial depreciation, yet
have an almost new car with a strong warranty and in some cases a better
warranty than a new one. Smart consumers can think of these vehicles
as the best and brightest in their class.”
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According to CNW Marketing Research, Inc., one
can expect to pay a premium of between four and seven percent for a
vehicle with the Certified Pre-Owned designation. “They may cost a little
more than you’d expect to pay for a used car, but when you look at all
the checks and balances performed and the extra warranty, it’s easily
worth it,” says Davis.
Among the benefits, not just some, but all vehicle
parts that are even moderately worn have been replaced. Many Certified
Pre-Owned cars come with new brake pads, hoses, accessory belts, wipers
and batteries. Their engines and transmissions have been checked and
overhauled if necessary; minor exterior damage -- like nicks, dings
and tattered trim -- is repaired or replaced; carpets and seat upholstery
are shampooed or cleaned, and if they look less than new, are replaced.
Beyond that, certified programs provide additional
warranties, often up to 100,000 miles, and may also include perks like
car-club style roadside assistance. This kind of warranty actually exceeds
the coverage offered by the factory when it was new. “Certification
programs increase consumer confidence about the quality of a used vehicle,”
says Scott Weitzman, senior director of retail programs for the noted
automotive polster, J.D. Power and Associates.
But, don’t just buy any vehicle that is labeled
Certified Pre-Owned. The best CPO programs are found only at new car
dealers, with repair requirements and warranties backed by the factory.
Also, ask to see the checklist on the car or truck of your choice so
you will know exactly what has been serviced.
“Simply put, purchasing a Certified Pre-Owned
vehicle is really a win-win situation for everyone. Manufacturers make
money on vehicles they had in fleets or on lease, dealers increase their
income percentage compared to new car sales, and customers walk away
feeling better about some of the built-in guarantees,” says Davis.
For more information about MotorWeek log onto
pbs.org/motorweek.
Courtesy of ARA Content
EDITOR’S NOTES
You can find MotorWeek on your local PBS station
or SPEED Channel on cable. The weekly automotive magazine covers all
aspects of the automotive industry and offers consumers unbiased, cutting-edge
news and features covering new vehicle trends, current safety information,
and the results of practical road tests. MotorWeek is nationally underwritten
by eBay Motors and Pep Boys.
Since 1981, MotorWeek has been the trusted source
for unbiased information, providing the first and last word on the automotive
world. Hosted by John Davis, television's original automotive magazine
offers comprehensive, cutting-edge news and features for consumers and
enthusiasts alike.
