Certified Used Cars or Private Party Used Cars - Which one to purchase?

• The original manufacturer provides a warranty.
• Has low mileage, usually less than 50,000 miles.
• Has 100 or more inspection points and any problem corrected.
• Includes a warranty that extends beyond the original warranty.
• The vehicle usually is not more than 3 years old.

B. Types of Certified Pre-Owned car (CPO) or Certified used car

1. Manufacturer Certified Used Car

Includes a national warranty backed by the original manufacturer and has gone through a rigorous inspection procedure to identify and correct and defective or worn parts.  The original purchase date starts the warranty period and concludes at the end of the contract, typically, 100,000 miles or 7 years, whichever occurs first.  
An authorized dealership will perform any repair work nationwide according to the contract.

    2.  Dealership Certified Used Car

This type of certified used car has a warranty that is backed by the dealership that sold the vehicle.  It may or may not provide repair work to be performed by any repair facility.  Therefore, if your vehicle requires warranty repair work out-of-town, you may have to ship your vehicle to the original dealership for repair work to be done under the warranty.  You must confirm before you purchase the vehicle what the coverage is and that you see it in writing.

Pros of certified used vehicles:

1. Customer has an affordable alternative to a new vehicle purchase.
2. The manufacturer and/or dealership supports the warranty of a used       vehicle.
3. Provides the customer with assurance the vehicle does not have any problems.

Cons of certified used vehicles:

1. The price of the vehicle is usually more than a private party used vehicle.
2. Customer service is only as good as the dealership providing the service.
3. Actual "in use" vehicle history of previous owner is unknown.
4. The price may not be lower than a comparable new vehicle.
5. You forfeit the depreciation cost benefit of a used vehicle.

Conclusion

Certified used vehicles are not inherently better than a private party used vehicles.  Certified used vehicles were once owned by a private party.  A privately owned used vehicle if properly maintained has advantages because you can interview the owner and inspect the maintenance and service records.  If the vehicle is out of warranty, you can purchase an extended warranty from a dealership or reputable aftermarket warranty provider.

With all things being equal, the bottom line is the price difference between a certified used vehicle and a private party vehicle.
One final word of advice, do not sign any sales agreement if the vehicles' "check engine" light is on and get any promises in writing.

Alston Gray
Automotive Consultant

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