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Taking
The Risk Out Of Buying a Used Car
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by:
ARA
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(ARA)
– Used Cars. A simple term that has a less than positive meaning for
most car buyers. Conventional wisdom says that buying a used car is
buying someone else’s problems. However, as new car quality has gone
up, the risk of buying a late model used car has gone down. In fact,
the automotive industry doesn’t even call them used cars anymore. The
term to look for now is Certified Pre-Owned, or CPO.
“There is a growing market in this country for used vehicles that have
been put through a Certified Pre-Owned program. CPO vehicles give the
consumer a chance to buy the latest models, often only two or three
years old, at a big savings over a new car. So, when you buy one,
you’re really doing yourself a favor,” says John Davis, host of
MotorWeek, the longest running weekly automotive show on television.
More than a third of all late model used cars and trucks sold last year
-- nearly 1.2 million vehicles --- came with a Certified Pre-Owned
designation. They are typically vehicles that have low mileage, and
have been put through a battery of tests to make sure they are in
tip-top condition. Vehicles that fall into this category are mostly
just off-lease, secured from factory executive car auctions, from
rental fleets, or the very best trade-ins.
“A new car depreciates by 15 to 20 percent the moment you drive it off
the lot,” says Davis. “If you buy one that’s Certified Pre-Owned, you
avoid taking the initial depreciation, yet have an almost new car with
a strong warranty and in some cases a better warranty than a new one.
Smart consumers can think of these vehicles as the best and brightest
in their class.”
According to CNW Marketing Research, Inc., one can expect to pay a
premium of between four and seven percent for a vehicle with the
Certified Pre-Owned designation. “They may cost a little more than
you’d expect to pay for a used car, but when you look at all the checks
and balances performed and the extra warranty, it’s easily worth it,”
says Davis.
Among the benefits, not just some, but all vehicle parts that are even
moderately worn have been replaced. Many Certified Pre-Owned cars come
with new brake pads, hoses, accessory belts, wipers and batteries.
Their engines and transmissions have been checked and overhauled if
necessary; minor exterior damage -- like nicks, dings and tattered trim
-- is repaired or replaced; carpets and seat upholstery are shampooed
or cleaned, and if they look less than new, are replaced.
Beyond that, certified programs provide additional warranties, often up
to 100,000 miles, and may also include perks like car-club style
roadside assistance. This kind of warranty actually exceeds the
coverage offered by the factory when it was new. “Certification
programs increase consumer confidence about the quality of a used
vehicle,” says Scott Weitzman, senior director of retail programs for
the noted automotive polster, J.D. Power and Associates.
But, don’t just buy any vehicle that is labeled Certified Pre-Owned.
The best CPO programs are found only at new car dealers, with repair
requirements and warranties backed by the factory. Also, ask to see the
checklist on the car or truck of your choice so you will know exactly
what has been serviced.
“Simply put, purchasing a Certified Pre-Owned vehicle is really a
win-win situation for everyone. Manufacturers make money on vehicles
they had in fleets or on lease, dealers increase their income
percentage compared to new car sales, and customers walk away feeling
better about some of the built-in guarantees,” says Davis.
For more information about MotorWeek log onto pbs.org/motorweek.
Courtesy of ARA Content
EDITOR’S NOTES
You can find MotorWeek on your local PBS station or SPEED Channel on
cable. The weekly automotive magazine covers all aspects of the
automotive industry and offers consumers unbiased, cutting-edge news
and features covering new vehicle trends, current safety information,
and the results of practical road tests. MotorWeek is nationally
underwritten by eBay Motors and Pep Boys.
Since 1981, MotorWeek has been the trusted source for unbiased
information, providing the first and last word on the automotive world.
Hosted by John Davis, television's original automotive magazine offers
comprehensive, cutting-edge news and features for consumers and
enthusiasts alike.
About the author:
Courtesy of ARA Content
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