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August 8, 2008, Newsletter Issue #90: Certified Pre-Owned Cars
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Tip of the Week
One of the fears of buying a used car is that it will break down shortly after driving it off the lot. Certified pre-owned cars, on the other hand, have been thoroughly inspected and carry with them a limited warranty. This is one way dealerships attempt to make buyers feel better about purchasing a used car. You can expect a certified pre-owned car to be in good shape, but this does not mean that you should skip an inspection by a mechanic of your choice or that you shouldn't take a close look at the vehicle before you purchase it. You should still demand a Carfax report as well, even if the used car you are buying is a certified pre-owned car. You should also ask the dealer exactly who the car is certified through. Is it certified by the manufacturer, or is it an internal dealership certification? Ask about the length and coverage of the warranty to make sure the extra cost of a certified pre-owned car is worth it. You don't want to pay extra for a certified pre-owned used car if all it means is the dealership did a simple inspection on the car and deemed it certified. Your used auto loan rates will not be any lower with a certified pre-owned car, but the certification may give you some piece of mind.
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