What Are Certified Cars?

emilyzhou

by Mark Bilek
0 d: a5 K% R7 @3 i9 LA certified used car or a certified pre-owned car (CPO) is a used vehicle that has passed a safety inspection and carries a warranty. Because of the certification process and included warranty, CPO vehicles cost more than traditional used vehicles. In many cases, the vehicle has been returned to like-new condition by the dealership and carries a manufacturer-backed warranty.

Certified used-car programs began popping up in the early 1990s and were started by luxury nameplates like Lexus and Mercedes-Benz. The large number of vehicles coming out of leases fueled CPO programs. In 2005 alone, experts expect over 2.5 million lease vehicles to be returned to manufacturers. Instead of turning these vehicles over to auto auctions or used-car lots, manufacturers developed CPO programs that would cater to luxury new-car buyers on a budget.
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According to a J.D. Powers and Associates study, certified used-car sales have jumped 46 percent since the year 2000. Currently, certified used-car sales make up 41 percent of all used-car sales. One reason for certified used-car popularity is that these programs allow consumers to enter a market segment that they normally couldn't afford to enter, which many view is worth the added cost of certification.
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Consumer Benefits
) }. ]4 }: B8 jOne major consumer draw of CPO pro grams is the guarantee of a like-new car at a close to used-car price. Most factory-certification programs include 100-point inspection/reconditioning, warranty coverage, and some amount of roadside assistance. A few, such as GM and Acura, even have a return/exchange policy.

For many consumers, the peace of mind provided by purchasing a CPO vehicle is well worth the premium price--which is exactly what the dealer and manufacturer want you to think. In reality, dealers and manufacturers have come up with and backed these certified plans because consumers have asked for an easier way to buy a used vehicle and dealers can charge more for a CPO vehicle.

, u( I$ e0 E: d; _' RBy certifying a used car or truck, a dealer can raise the asking price compared to a noncertified vehicle. The cost of certification to the dealer and manufacturer is probably 1/2 to 1/3 of what they are actually charging. Most dealers will certify and purchase warranties on only the cream of the used-vehicle crop, and spend from $300-$1000 when they do so.

Many dealers will tout the fact that the inspected vehicles are repaired, returned to manufacturer spec, or "upgraded" in the certification process. The fact of the matter is that during the inspection, if a vehicle is found to have a major problem, it is simply removed from the certification process and sold "as is" or wholesaled to an auction house.

: g+ F5 ?- b, }. t9 OBy increasing the resale transaction price of a used vehicle using a CPO program, the manufacturer reaps an additional benefit: higher residual values on like-model new vehicles. Which, in turn, increases the lease value of a like-model new car--adding to the manufacturer's profit. This is the reason so many manufacturers get into the certified game with advertising and incentives to dealers.
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Factory vs. Dealer Certification
0 u5 d: Y1 t5 C8 ]* b$ t; ~Some new-car dealers and many used-car dealers of fer their own brands of certification, but this is generally a way to further cash-in on the precedent set by manufacturers. If you do decide to go for a certified used car, we recommend you avoid dealer-certification programs. They are a bit of a gamble compared to the option of a factory-certified vehicle--and often not worth the money. Also, be sure to ask for a copy of the inspection/repair list for the particular certified car you're looking at.
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Ways to Find a Better Deal
  `2 }' K8 I9 f) M3 X+ ATo many consumers, buying "certified" means less hassle in the car-buying process because it allows them to purchase a like-new used car for significantly less than they'd expect to pay for a current model, without forfeiting the security of a factory warranty. Serious shoppers will find noncertified used cars more affordable, and the cost of getting the car inspected and purchasing warranty coverage independently is often lower than the cost of certification.
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Whether you choose a certified used car or not, avoid buying a lemon by getting a Vehicle History Report (VHR) through one of the various online services. Consumer Guide®'s Vehicle History Report in the Toolkit section of our site will tell you the title history, report recorded mileage, notify you of major repairs or accidents, and in many cases, list recalls and chronic repair problems. All you need to know is the Vehicle Identification Number (VIN).
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+ ~3 v/ s. Y; {The Bottom Line
Dealers and manufacturers market CPO vehicles because consumers like the the hassle-free shopping and certified cars sell for more money. Sure, savvy consumers can check the title, purchase an extended warranty, and have a mechanic kick the tires for hundreds or thousands of dollars less than a dealer is charging for the "certified" stamp of approval. But many consumers prefer the peace of mind that a certified used car offers and the simplicity of having a dealer check out the vehicle. In the end, it is up to the consumer to decide if certified is the way to g

浪里黑条

That is just a bullshit from car dealerships.

lunik

原帖由 浪里黑条 于 2008-5-28 14:19 发表
7 F( e$ B& ?; c$ zThat is just a bullshit from car dealerships.

  G8 q- K3 U4 s* u' T2 q我买了一个certified car在honda dealer那里，觉得还凑合
4 ~4 @8 P2 I. M$ ]# U, n2004 Honda CRV 70000KM， 20000CAD finance 0.9% interest/3year， no down payment
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当时也看了其它dealer的报价，也没比这个价格少多少，一想毕竟是正规的dealer少了些担心。
. J9 L; H9 T$ A5 C/ o不过我在这里看到好多车也是撞过，刮过的，但是他们也说是free accident，还是要仔细挑选才是。

白马啸西枫

个人觉得沙发说的对，it is  just a bullshit from car dealerships, you don't need to believe that very much