Certified Pre-Owned Vehicles — New Car Benefits at A Used Car Price

Years ago, the purchase of a used car could be a frightening experience for even the most frugal car consumer. The risk versus the reward of buying a used car instead of a new car was a virtual roll of the dice, depending on the quality of the used car in question. The consumer’s initial savings on the purchase of a used car was always at risk if the used car turned out to have serious problems down the road.

However, those days have long passed with the advent of the certified pre-owned vehicle (CPO). In fact, the growing popularity of certified pre-owned vehicles has grown incrementally in recent years — a recent J.D. Power and Associates survey found that CPOs accounted for 41 percent of all used-car dealership sales in 2005.

So, what exactly is a certified pre-owned vehicle? The explanation of a CPO is relatively simple: Manufacturers take their late-model used vehicles (usually less than five years old), put them through a fairly rigorous inspection process, and attach an extended warranty and other perks to the vehicle. The attraction and advantage to the consumer is simple — the consumer receives new car benefits at a used car price.

The consumer should be aware, however, that not all certified used car programs are the same. When shopping for a CPO, the consumer should review each manufacturer’s certification program to see which one offers the most complete coverage and competitive price. The consumer should also carefully check what the certification means and what the warranty covers — each of these can vary from program to program.

Finally, consumers need to remember one of the last steps in moving toward the purchase of their certified pre-owned vehicle — their auto financing. Visit AAA.com/AutoLoan to see how AAA can provide you with a no-hassle way to secure a competitive interest rate for your auto financing.