New car costs are at all time highs, with some buyers shocked to find a new vehicle costs more than their first house. The comparatively low costs of late-model used cars are luring increasing numbers of buyers to the used car lots at the dealership. Traditionally, increased repair costs of used cars can negate any savings from buying used. What is a thrifty buyer to do?
OEM Certified used cars also know as Manufacturer certified pre-owned cars have increased in popularity because of the benefits such as detailed inspections, extended warranties, and roadside assistance. How much do certified used cars cost?
Because they undergo a multi-point inspection, manufacturer certified pre-owned cars cost more than other used cars. If defects are found during the inspection, the dealer repairs or replaces the defective part to the manufacturer specifications before placing the car on the lot for sale. Used cars rarely come with an inspection unless the prospective buyer pays for an independent inspection by his mechanic. The cost of the inspection and repair of a Manufacturer certified car is built into its price.
Although costs for CPOs vary by market and vehicle make and model, a solid rule of thumb is $1000-$1500 more than a traditional used car. That said, while you should expect to pay for the security provided by certification, you should not expect to overpay for your car. Negotiate a price on a certified pre-owned vehicle just as you would on any other new or used car purchase.
Keep in mind that an increasing number of new car dealerships offer special financing for OEM certified pre-owned automobiles. These special finance rates can more than make up for the additional costs of certification.
A word of caution: not all dealers offering a warranty are selling OEM certified used cars. Make certain the Manufacturer is guaranteeing the warranty and that it is portable, meaning you can get repairs at any of the manufacturer’