Thinking about a new or used car? Think certified pre-owned. These like-new vehicles benefit consumers because they have been inspected, refurbished and guaranteed by the manufacturer or other authority. In addition, they also typically include an extended warranty, special financing options and other exclusive benefits.
David Nathan, general manager of Gary Rome Kia of Enfield, said, "You can only buy a certified vehicle from the manufacturer that sells them. In other words, I can't certify a Honda, and Chevy can't certify a Kia."
It is important for consumers to note that the upfront cost of certifying a pre-owned vehicle adds value that is greater than the price of the certification. For example, if it costs $500 to certify a vehicle, the result is that the vehicle's value becomes about $1000 greater. Therefore it's as if the buyer of that certified vehicle pocketed $500.
"Most importantly, a certified vehicle extends a powertrain warranty on that vehicle for longer than the state mandates," said Nathan. "So for Kia, you have a five-year, 60,000-mile, bumper-to-bumper warranty as the second owner. When you certify that vehicle, you automatically get a powertrain that takes you to the full 10-year, 100,000-mile warranty that is only offered to the first owner.
Nathan went on to say that certain criteria must be met for a vehicle to be certified, such as the condition of the brakes. If the brakes do not meet the requirement, they may need to be replaced in order to certify the pre-owned vehicle. Other items include tires, which must meet the minimum required remaining tread depth. Many manufacturers require vehicles must also meet a 150-point inspection.
The other thing that consumers should keep in mind is that banks charge much higher on interest rates on used cars that aren't certified. "Consumers benefit when buying certified vehicles because the manufacturer offers lower interest rates on certified vehicles," said Nathan.
"If you are in the market for a certified pre-owned vehicle, you can expect three things," said Nathan. "One, a more intense safety process before a vehicle goes to the used car lot. Number two, you can expect a lower interest rate if you are financing the car from the manufacturer. And number three, you can expect a longer powertrain or safety warranty on that vehicle because it's certified."
David Nathan, general manager of Gary Rome Kia of Enfield, said, "You can only buy a certified vehicle from the manufacturer that sells them. In other words, I can't certify a Honda, and Chevy can't certify a Kia."
It is important for consumers to note that the upfront cost of certifying a pre-owned vehicle adds value that is greater than the price of the certification. For example, if it costs $500 to certify a vehicle, the result is that the vehicle's value becomes about $1000 greater. Therefore it's as if the buyer of that certified vehicle pocketed $500.
"Most importantly, a certified vehicle extends a powertrain warranty on that vehicle for longer than the state mandates," said Nathan. "So for Kia, you have a five-year, 60,000-mile, bumper-to-bumper warranty as the second owner. When you certify that vehicle, you automatically get a powertrain that takes you to the full 10-year, 100,000-mile warranty that is only offered to the first owner.
Nathan went on to say that certain criteria must be met for a vehicle to be certified, such as the condition of the brakes. If the brakes do not meet the requirement, they may need to be replaced in order to certify the pre-owned vehicle. Other items include tires, which must meet the minimum required remaining tread depth. Many manufacturers require vehicles must also meet a 150-point inspection.
The other thing that consumers should keep in mind is that banks charge much higher on interest rates on used cars that aren't certified. "Consumers benefit when buying certified vehicles because the manufacturer offers lower interest rates on certified vehicles," said Nathan.
"If you are in the market for a certified pre-owned vehicle, you can expect three things," said Nathan. "One, a more intense safety process before a vehicle goes to the used car lot. Number two, you can expect a lower interest rate if you are financing the car from the manufacturer. And number three, you can expect a longer powertrain or safety warranty on that vehicle because it's certified."
