Are Pre-Owned Certified Vehicles Worth It?

By NADAguides.com

When you're looking for a pre-owned car, it can be difficult to know what the difference is between buying a certified or standard used vehicle. Our helpful tips can help ensure that you make the right decision!

Do your homework first
- See what you can afford -Sure that Italian speedster might look nice parked in your driveway, but is it really worth it? Before you waste any time looking at the wrong vehicles, determine what you can afford.

It's also a good idea to check your credit report. This will ensure there aren't any mistakes or other surprises that can negatively affect what type of loan you qualify for.

- Determine your needs - Decide what vehicle best fits your needs, along with your preferred options. These might include color, transmission type (manual or automatic), leather seats and more.

· Check out what others have to say - Sites such as NADAguides.com allow you to compare models, read reviews and much more. It's also a wise idea to check out the vehicle's repair history and see if it has had any recalls. The U.S. Department of Transportation's Auto Safety Hotline (1-800-424-9393) can help you.

Now that you're satisfied on your choice, another question needs to be addressed: Should you buy a new or certified pre-owned automobile? Let's explore this.

What is a certified pre-owned (CPO) automobile? Even though there are many used cars on the road, not every one of them qualifies for certification. Typically, a CPO vehicle is a used car that has gone through a rigorous inspection process and has an extended warranty beyond the car's existing warranty. The best way to describe a CPO car: One that needs very little reconditioning or was reconditioned to original factory specifications.

As a result of stringent guidelines and strict criteria associated with the CPO qualification process, certified pre-owned vehicles are guaranteed, or certified, by the manufacturer. For added peace of mind, virtually every certified pre-owned vehicle sold today comes with a comprehensive vehicle history report as back-up documentation in addition to comprehensive inspections and warranties.

What's involved with a typical certified pre-owned inspection process? Typically, cars that are newer than five years old with fewer than 50,000-60,000 miles and solid title histories are the only vehicles considered for certification. Once a car passes this initial test phase, it's put through a series of evaluations (further defined as the inspection process) to see if it meets the manufacturer's stringent guidelines for certification.

Most manufacturers offer anywhere from 100-point to 300-point inspections. We've organized these detailed inspections into six separate criteria.
· General evaluation: including safety systems, mirrors, lights, braking, steering, shifting and overall engine operation.
· Under hood evaluation: including the electrical system, engine cooling system, brake and ignition systems, belts, air conditioning and power steering.

· Exterior assessment: such as bumpers, front grill, doors, fenders, glass and wheels.

· Interior evaluation: including the instrument panel, seats, carpet, floor mats, headliner and general upholstery.

· Required service and maintenance assessment: such as lube, oil, filters, tire pressure and emissions.

· Exterior detailing analysis: including surface scratch reconditioning, tar and road oil removal, general washing and waxing, and engine compartment cleanliness.

Do certified pre-owned vehicles cost more? Yes, CPO vehicles typically cost more money than non-certified vehicles. They may be as little as $400 more than a non-certified used vehicle or as much as $2,800 more, depending on the brand and model. For some people, paying more money for a manufacturer-guaranteed vehicle is worth the extra cost.

For others, it's better to take the chance and purchase a non-certified used car for less money since there are a wealth of good-quality, mechanically-sound used cars on the road today that don't carry certifications

Is certified pre-owned right for me? Buying a certified pre-owned vehicle is purely a personal decision. As we've outlined in this section, pre-owned vehicles go through a stringent evaluation process and carry comprehensive warranties not typically offered with non-certified used cars.

While certification brings with it guarantees not commonly associated with pre-owned vehicles, it's not a surefire guarantee that something won't go wrong with the used car you're buying. However, consumers appreciate, and in most cases are willing to pay more for, a car that has been rigorously inspected and guaranteed by the manufacturer