5 Tips When Buying A Certified Pre-Owned Car

Buying a certified pre-owned car (CPO) can be an attractive alternative to buying a used car. They’re typically in near-perfect condition, have been tested rigorously by trained mechanics, and come with a limited warranty. That said, prospective buyers should still perform their due diligence before purchasing. Below, I’ll provide 5 quick tips to make sure that you get a great deal when buying a CPO.

Tip #1: Read The Warranty

Not all car warranties are equal. And limited warranties deserve a thorough reading. Take the time to understand what the warranty covers and what it doesn’t. It’s possible that the warranty will cover the cost of a part that malfunctions, but not the labor required to install it. For example, the warranty may cover the powertrain, but replacing the transmission will require a mechanic. Also, if there’s a deductible, find out what it is.

Tip #2: Know Who’s Certifying

A CPO will always be advertised as “certified,” but you’ll need to know who is certifying the car. If it is being certified by the dealer, consider looking elsewhere. Ultimately, you want a car that has been certified by the manufacturer. Remember, one of the main advantages of buying a CPO is that it meets the specifications established by the manufacturer.

Tip #3: Haggle

Oddly, a lot of people think that prices for CPOs are set in stone. They’re not. Feel free to negotiate just like you would for a new or used car. To do that, you’ll need to know its value…

Tip #4: Research The Car’s Value

If you’re going to negotiate (and you should), you’ll need to know the approximate value of the car. You can use the Kelly Blue Book or check ConsumerReports.org. Keep in mind that the price charged by the dealer will include the limited warranty. So, it’s likely that those two resources will show values that are slightly less.

Tip #5: Clarify Repair Locations

If your car experiences an electrical or mechanical problem, you’ll need to know where you can take it to have the problem fixed. Check the warranty and ask for clarification. Can you have the work performed by independent shops? Will you be forced to bring your car back to that specific dealer? Ask so that you won’t be surprised later.

Your new certified pre-owned car will likely be a dependable vehicle that won’t let you down. Use the 5 tips above to get a great deal, understand the warranty, and know who is certifying it. If there’s a problem in the future, you’ll be glad you did.

Buying A Car: Using The Salesperson’s Tactics Against Him

Negotiating the deal. For most car buyers, this is the part of the buying process they dread. It tends to be long, tedious, and nerve-wracking. By comparison, researching models and spending time on the dealership lot is easy. But, when the time comes to negotiate the price, an otherwise pleasant experience can seem intimidating.

A large part of the blame rests on the salespeople. Most are honest, but they also have a job to do: to put you behind the wheel of a new vehicle. To do that, they unleash a number of well-honed sales strategies to move you closer to a purchase decision. With a little savvy, you can turn the tables on them and walk away with a fantastic deal.

The Trip To The Manager’s Office

A time-honored tactic on the dealership lot is for the salesperson to pretend to meet with their manager to convince him your price is fair. This has the dual effect of gaining your trust while positioning the manager as the inflexible curmudgeon. Don’t fall for it. In most cases, the manager is left out of the loop; it is just a negotiation technique.

You can turn the tables on the salesperson by telling him or her you’ll need to speak with your wife or husband before buying the vehicle. If they can use someone else as the “bad guy,” you can do the same.

The Limited Time Offer

Another tried-and-true sales tactic is for the dealership to make it clear that the price they’re offering expires the same day. That creates stress; salespeople know that people make hasty decisions when they want a scarce commodity. But, ask yourself: is the car, truck, or SUV really going to be unavailable at the quoted price the following day? More important, is it truly the best price you can find?

Offer a lower price. They’ll balk, thinking you’ll offer more. Leave your name and phone number with the salesperson and let them know your offer expires at midnight. Two can play the “limited time” game.

Eleventh Hour Price Bump

You and the dealer have finally agreed on a price. You’ve stood your ground and have been rewarded with a great deal. Suddenly, the salesperson explains that they’ll have to increase the price of the vehicle a bit. The reason might be due to fees that were neglected during the negotiations or a number of other excuses. This is a common strategy to enhance their profit. The dealer is counting on your giving in due to the amount of time you’ve spent negotiating. Rebuff the attempt by lowering the price you’re willing to pay for the vehicle.

The salespeople at car dealerships are honest, hard-working individuals. But, it’s worth noting that they’re compensated by the deals they negotiate. There’s nothing wrong with using a little savvy to make them work harder for your money.

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