Research before buying a certified pre-owned vehicle
In this Aug. 30, 2011 photo, Ford Explorers are displayed at a car dealership in San Jose, Calif. Consumers spent less on autos, clothing and furniture, leaving retail sales unchanged in August. The lack of growth in retail sales during a month of wild stock market fluctuations may increase recession fears. (AP Photo/Paul Sakuma) Credit: AP Photo/Paul Sakuma
Q. Do certified pre-owned cars have a better warranty than brand-new cars? If so, wouldn't it be better if I bought a certified car than a brand-new one, especially if I plan on having it for a long time?
A. Certified pre-owned (CPO) vehicles do tend to have longer warranties than new models, though usually that applies only to the powertrain warranty, not the bumper-to-bumper comprehensive warranty that comes with a new vehicle.
Honda is one exception. Buying a certified pre-owned Honda stretches the basic bumper-to-bumper warranty by one year and 12,000 miles, to four years/48,000 miles. The powertrain warranty is extended to seven years/100,000 miles, compared with five years/60,000 miles on a new Honda.
Ford, on the other hand, provides a three-month/3,000-mile basic warranty but gives its CPO vehicles a six-year/100,000-mile powertrain warranty (compared with five years/60,000 miles new). However, Ford charges a $100 deductible per warranty visit; there is no deductible if you buy a Ford new.
Chevrolet, Buick and GMC give their CPO vehicles a one-year/12,000-mile basic warranty and the balance of the five-year/100,000-mile powertrain warranty, plus two years of free maintenance and five years of roadside assistance.
The only way to get the 10-year/100,000-mile powertrain warranty on a used Hyundai or Kia is to buy a CPO model. Used Hyundai and Kia vehicles that aren't certified get only a five-year/60,000-mile coverage.
Because the terms vary so much by manufacturer, you should check out Cars.com's comprehensive guide to CPO programs, which explains the warranties and other requirements of the programs.
You asked whether you would be better off buying a CPO car instead of a new one, and the answer to that question is, maybe. First, you're getting the balance of the warranty, what's left from when the car first went into service as a new car. On a 2-year-old Ford with 25,000 miles on the odometer, for example, the remaining powertrain coverage would be for four years/75,000 miles, whichever comes first.
Second, used cars are at or near record prices, and CPO cars are more expensive than ordinary used models. Before you jump on the CPO bandwagon, compare the cost of buying a new car with all the original warranties in place.
Despite some benefits of buying a CPO vehicle, you may find that a new vehicle, overall, is the better deal, including that the price isn't much higher than a used model.
© 2011, Cars.com
