The cost of certified pre-owned vehicles (CPO) is determined by the amount of damage incurred by the previous owner and the maintenance the car requires to become certified. CPO and certified used vehicles will generally be more expensive than used cars of the same year and model, but offer some quality incentives for customers. When purchasing a CPO, review the amount of money it costs to put the certification stamp down.
Costs of Certification
Each type of car costs a different amount to certify. Auto manufacturers may add up to 10 percent of the original car price depending on the vehicle’s model and make. Some types of certification may be done by your local mechanic for a fraction of the price. The following types of cars and their average upgrade cost include: • Budget cars, $386 • Full-size sport utility vehicles (SUVs), $1,824 • Luxury cars, $3,358 • Midsize cars, $1,218 • Small SUVs, $624 (CNW marketing research, 2008). Many CPOs include an extended warranty that can also raise the cost of the vehicle. Some CPOs costs are balanced by dealer incentives such as roadside assistance, shuttle pick-ups, drop-off services and free maintenance. Speak with your dealer about the possible addition of these incentives when buying your CPO.
The Certification Process
Many dealers advertise a complicated certification process with hundreds of types of detailed inspections. Sometimes, these assessments may be elementary tasks such as adding coolant or changing the oil. While te certification sticker implies that a car must pass these tests, you can’t be sure how they were performed. Many car companies publish versions of these inspection online. Search for this information to ensure the car you're examining meets the promised standards. Your potential dealer should be able to offer you a look at the vehicle inspection sheet. This can give an idea of any recent work. Performing some research on your own can give you a better idea of the car’s history. Compare your future model's reliability history with other cars in its market, and check your dealer’s resale value against competitors.
Financing Options
Some car companies will feature lower finance rates for their CPOs with specific cut-off dates for the incentive. Using a true market value system or a method to trace the vehicle identification number (VIN) can give you an idea of the vehicle’s true worth, and by comparing prices you may lower the asking price provided by the dealer. When choosing a certified used vehicle with a maintenance plan, research the options involved.