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Pros And Cons Of B...

January 27, 2016 12:59

Getting loans has become a lot tougher now than in the past, thanks to global economic crisis. A new car buyer might not prefer taking long term loan, but he/she can rather go for a more affordable alternative - Certified Pre-Owned (CPO) car. Most car buyers, these days, are searching for CPO vehicles as the comprehensive inspection and warranty coverage make them more reliable.

Each choice comes with few pros and cons, so as the CPO cars.

Pro

Certified cars give "peace of mind": Certified used cars give you a sense of security. Buyers don’t have to worry about the faulty or fake dealer or seller’s claims. The certified vehicles, usually, are profoundly inspected before the certification. Most car manufacturers offer a certification program with factory assurance, whereas the dealer or private organization programs don’t offer a factory sponsorship. Some websites provide a detailed vehicle history report including prior ownership, past accidents etc.

CPO cars are pre-selected and inspected: The manufacturers’ certification programs have mileage and age limits for the vehicles. Cars with maximum 50, 000 to 80, 000 miles and 4-6 years old are considered eligible for certification, though, it may vary with automakers. Some manufacturers extend eligibility up to 7-8 years. Dealers check inspection points of the vehicles. Being a buyer, make sure that inspection has been done profoundly. If an inspection reports significant issues, repairs have to be made immediately. Therefore, most dealers select the best vehicles from a certified lot. If a vehicle clears eligibility inspection, an additional investment is required to make it into a CPO model. 

Certified-car repairs are covered through warranty period: Certified pre owned cars vehicles come with a manufacturer warranty for free repairs for a certain time period. This warranty counts after the original warranty expires.

Con

Certified used cars cost more: Vehicle inspection and its after repairs cost money. Moreover, dealers have to pay a fee to car manufacturer for getting involved in a CPO program; and warranty, too, has its price. This is the reason why CPO vehicles are pricier than the non-certified models. The price may vary for low-budget and luxury car models. To allure buyers, most CPO dealers offer special financing and attractive terms. 

It's still a used car, with potential for problems: It doesn’t matter how much research you perform, which certified dealer you choose and how carefully the vehicle is inspected, there is no surety that the certified second hand cars won’t have any problem in the next few years. However, certification can reduce the risk.

Few tips for buying a certified used car -

  • Do research for the car you are interested in and dealership’s service department

  • Check for certification as most used cars aren’t certified

  • Make sure that you get get the car’s warranty 

  • Prefer to deal with local certified pre-owned buyers

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