Pros and cons of certified pre-owned cars
Car salesman JC Soto, right, talks with customers as they shop for a car on the sales lot of a Chrysler Jeep dealership in Hollywood, Fla. Before deciding on a certified pre-owned car, keep in mind the pros and cons of such a decision. Credit: Getty Images
Are you considering buying a certified pre-owned car?
Sometimes the only way to get a fancy luxury or high-performance sports car is to wait a few years until the price has fallen to a more realistic level, rather than pay the full sticker price plus a premium.
The uncertain state of the economy also makes certified pre-owned cars attractive.
"Buying a certified pre-owned car is a good alternative to buying a new car at a time when the customer faces the uncertainty of making a mortgage payment, much less a car payment," said Jerry Cizek, president of the Chicago Automobile Trade Association and its 500 dealer members.
Before deciding on a certified pre-owned car, keep in mind the pros and cons of such a decision:
If you decide that a certified pre-owned car is right for you, there are even more things to consider. There are different types of certified cars: ones that are certified by the factory and ones that are certified by the dealer. Understanding the differences can help you make your decision.
No matter which kind of used car you buy -- whether it's a certified one with a factory warranty or a non-factory-backed one that you purchase an extended warranty for -- make sure you know what's covered. Get a copy of the warranty terms spelling out what is and isn't covered, what, if any, deductible you must pay, and who does the repairs.
Don't settle for a sales brochure stating the "powertrain" is covered. Get a detailed explanation of what the term "powertrain" includes. It can differ.
"Always read the contract on what the warranty covers and what it doesn't," warns Steve Bernas, president and CEO of the Better Business Bureau of Metropolitan Chicago. Bernas spent years handling automotive complaints for the bureau before becoming CEO. "The big print typically gives, the little print typically takes away."
