July 13, 2006
Survey finds strong consumer interest in certified pre-owned vehicles
Santa Monica, California – A new survey from Edmunds.com found that consumers are extremely interested in purchasing certified pre-owned (CPO) vehicles when shopping for new or used cars. Almost 85 per cent of respondents said they have considered or would consider purchasing a CPO vehicle, although 57 per cent said they didn’t know the difference between a manufacturer’s and an independent company’s certified pre-owned program.
“There is an important distinction: a factory-certified vehicle is backed by the manufacturer and provides consumers with the option of servicing their vehicle at any of the franchise’s dealerships,” says Philip Reed, Consumer Advice Editor. “We don’t recommend dealer-certified cars because they typically offer a much more limited certification and no backing from the manufacturer.”
Extended warranties, multi-point vehicle inspection, roadside assistance and reconditioning are usually included in manufacturer CPO programs, the company says. The premium for a CPO vehicle varies based on manufacturer and car type, and averages from around $500 for used subcompacts to as much as $3,000 for used premium sports cars. Among those surveyed, 31 per cent said they would pay up to $500 extra for a CPO vehicle, while 12 per cent would pay for $1,000 extra, but almost one-quarter would not pay any additional amount.