Topic: Is certified pre-owned vehicle just a pretty name?

[Loudpedal]

My '08 TL was a CPO vehicle.  Not all get CPO'd, so they are really the most pristine of all.   Also, the Acura CPO lengthened the powertrain warranty to 160K!!   I think it's an excellent program.       

For me, there was no downside at all to buying CPO.   Nearly all the benefits of buying new, and 17K plus tax stayed in my pocket due to someone else taking the 1 yr and 11 months worth of depreciation.       

[articsteve]

but with brand named dealer such as Toyota dealership, there should not be a need to have another inspection on the car right?

More or less correct.

Toyota "Certified" is a marketing program.  First off, the vehicles need to have some sort of service history and be accident free.  The 160 point inspection is "lite". 

The guts of the program is the Toyota Canada finance rate.  Also the vehicle will come with a 3 month/5000 km bumper to bumper warranty included in the price.  The vehicle is then eligible, for a cost, for an extended warranty either power train only or full comprehensive.

It's designed for ppl that don;t want to go new, but desire lower than bank financing rates and the piece of mind of a comprehensive warranty to 160k km.

Any dealer can use the word "certified".  It's meaningless without an official program attached to it.  We plaster a "certified" sticker on everyone of our used cars regardless of brand.  Buyers like to see it.        

[DKaz]

Yah I was considering getting a Certified 2005 Echo hatch earlier this year which would've been 2.9% financing for up to 60 months, and at the same time they hacked and slashed the price down to no tomorrow until the OTD price was $2,000 less than their $9,995 asking price, but in the end decided against it... it wasn't the RS model I truly wanted.

[sailor723]

I was involved in a MB dealership in a previous life. Their CPO process and inspection was quite involved as I recall and the dealer could be on the hook with MB Canada for repairs if they passed a car that wasn't up to snuff.

[johngenx]

Most of my MB's were CPO cars, and I found that while the prices were slightly higher than private sales, the cars were truly the pick of the litter in the used market.  Yes, I did have my indie tech give the cars a quick once-over, just to be sure, but he never found a flaw in any of them.

I'm not sure about today, but at one time MB financed any Mercedes used car on a dealers lot.  Fall in love with a something like a 1969 280SL, but can't swing it all in cash?  MB would finance it, and at a pretty good rate.  I bought a creampuff 190E 2.3-16V and MB Canada's rate was far lower than the bank offered.

[alenlo]

Don't drink the new car dealer Certified Pre-Owned (CPO) kool-aid. Sold at premium prices, they are marketed as accident-free exhaustively reconditioned creampuffs with comprehensive warranty protection. Warranty fees, deductibles and fine print bafflegab often restrict applicability and payment to a fraction of the repair cost. Skimping and cheating are rampant. Some dealers are selling title-washed, branded, collision damaged, flood soaked cars and U.S. lemon law buybacks and lying through their teeth. A full due diligence process including an independent inspection reduces the risk.

Though I deal with supposedly reputable dealers and will pay a fair price for quality, the cold, hard, high octane fact is the car business is filled with liars, cheats, fraudsters and slimy sons of bitches. A salesman will say anything to get your signature on a contract and his commission. The truth is out there, trust no one!

The worst was a CPO car, accident free according to the sales weasel. CarProof said two repairs totaling $5,500. Just minor dents and scratches from shopping carts he purred, claiming he knew the previous owner personally and his dealership did the repairs. So splain the welds to the trunk floor! Disappointing, I have bought from this dealership previously.

I am sometimes asked to assist friends and relatives purchase cars, three in a little over a year. So far thorough due diligence and independent inspections have paid off. My purchases have all turned out well. Sooner or later, however, I will get burned. It's the law of averages. Not looking forward to it. I have little confidence officialdom will rush to my rescue.

thanks for you feedback, you sound very experienced with used car purchase
so you suggest to do a independent inspection no matter if it is a certified pre own vehicle or not

about the carproof or vehicle insurance report, it is possible to have collision record without details (how much to fix, etc) right?
the salesman brings a report with 2 collision records on it and say it was minor that on the report it says no detail? is this right or possible?

thanks,

[Gardiner Westbound]

Without knowing your price point I will suggest the sweet spot is a three or four year old, one owner, local car with about 80,000 kilometers and a clean CarProof or AutoCheck history report. It will give you the same satisfaction as a new car for about half the price. I prefer one with at least six months and 5,000 kilometers powertrain warranty remaining, though it will doubtless be a fight to get it honored.

Same year, make and model cars within a geographic area will be similarly priced. The challenge is to distinguish a “dealer queen” from a castoff lemon. Success is getting the best one for the same money. That takes research, time and thoroughness. Condition is paramount. Pay a fair price for quality. The added cost will be returned in reduced repair expense and aggravation.

History reports are often ambiguous and incomplete. Salesmen are adept at gaming them. Due diligence and an off site independent pre-purchase inspection (PPI) are essential. It's the best car money you will ever spend! Time and cost considerations preclude thoroughly evaluating more than one or two cars. Know how to do a competent preliminary assessment and test drive. Here's a video.

http://www.youtube.com/watch?v=f0hIl7s51-k

[alenlo]

Without knowing your price point I will suggest the sweet spot is a three or four year old, one owner, local car with about 80,000 kilometers and a clean CarProof or AutoCheck history report. It will give you the same satisfaction as a new car for about half the price. I prefer one with at least six months and 5,000 kilometers powertrain warranty remaining, though it will doubtless be a fight to get it honored.

Same year, make and model cars within a geographic area will be similarly priced. The challenge is to distinguish a “dealer queen” from a castoff lemon. Success is getting the best one for the same money. That takes research, time and thoroughness. Condition is paramount. Pay a fair price for quality. The added cost will be returned in reduced repair expense and aggravation.

History reports are often ambiguous and incomplete. Salesmen are adept at "gaming" them. Due diligence and an off site independent pre-purchase inspection (PPI) are essential. It's the best car money you will ever spend! Time and cost considerations preclude thoroughly evaluating more than one or two cars. Know how to do a competent preliminary assessment and test drive. Here's a video.

http://www.youtube.com/watch?v=f0hIl7s51-k

Thanks once again, learned a lot, i think i should take some notes so as to act as a reminder next time when in the dealershop

about clean CarProof or AutoCheck history report, how does it look like? with 0 records? how do you define a clean report? how about if the report says no lien, no salvage, not rebuild but has some collision? does this also consider as clean? or you prefer something better?