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.

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3 Types Of Used Vehicles To Avoid Buying

When buying a new car isn’t a feasible option, purchasing a pre-owned model may be the next best thing. There are plenty of bargains out there. Unfortunately, a lot of buyers are tempted to cut corners in order to save money, even if that means taking home somebody else’s problem.

The good news is that purchasing a used vehicle doesn’t have to represent a minefield. You can uncover enormous value by using a little shopping savvy. Part of the battle is being able to identify the telltale signs of an automotive money pit. To that end, here are three types of used cars you should avoid buying:

#1 – The Enigma

Before computers, automotive maintenance records were difficult to find. You were forced to trust the seller about his or her vehicle’s service history – and roll the dice and hope for the best. Today, every trip to a repair garage is recorded electronically. The “paper trail” is archived on computers. That means if a used car lacks maintenance records, assume it hasn’t been maintained. Avoid buying it. With the number of bargains on the market, there’s little reason to throw caution to the wind.

#2 – The Leaker

Fluids are critical to the smooth operation of your automobile. Oil, transmission fluid, coolant, brake fluid, power steering fluid… each of these play a key role in how your car performs. When you’re considering a used model, peek under the body and look for leaks. A couple of drops may not pose a serious problem, but any leak can potentially represent expensive repairs down the road. At the very least, have an experienced mechanic identify the leak’s source to determine its root cause and the cost of fixing it.

#3 – The Retired Rental

You may be tempted to buy a used vehicle that has been recently retired from the rental lot. Be wary. Rental cars may look like new on the surface, but can be hiding mechanical and structural problems. A lot of would-be buyers figure that the rentals must be in good shape. After all, the automobiles are generally retired after a few years; how much damage could there possible be?

Consider how people treat rentals. They don’t own them, so they’re less likely to drive them with care. Instead, hard stops, quick acceleration, and sharp turns are common. These things can be rough on the engine and brakes. What’s more, shenanigans such as burnouts and curb-jumping can cause wear and tear on the alignment. And that’s not always noticeable when you’re doing a casual inspection. Avoid retired rentals and save yourself the expense of future repairs.

When you purchase a used vehicle, plan to eventually replace miscellaneous parts and have minor repairs performed. These things are par for the course. However, by avoiding vehicles that lack a service history, those with leaks, and past rentals, you’ll sidestep potential automotive headaches.

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Used Auto Dealership Swindles To Watch For

In a recent article, I described a few common pitfalls that regularly entrap unwary car buyers. Those pitfalls are normally found at new car dealerships. Today, we’ll switch gears and focus our attention on independent dealerships that specialize in selling used vehicles. There are a number of potential traps (some are illegal) that can turn an automotive bargain into a nightmare. Below, I’ll describe two of them and explain how you can avoid them when buying your next automobile.

Improper Title Ownership

Auto dealers who are struggling with cash flow issues are occasionally tempted to sell vehicles off their lots without actually having the associated titles. Here’s how it works: the dealer may borrow a large sum (potentially in the millions of dollars) from a “flooring agent” in order to stock his lot with inventory. When a car is sold, the flooring agent is paid and the title is transferred to the dealer. Then, the title is given to the buyer.

Sometimes, the dealer fails to pay the flooring agent, even after an automobile has been sold. As a result, the title is not transferred. Eventually, the buyer visits the lot in order to pick up the title only to discover the dealer has pulled the same scam on others and closed up shop.

When you purchase a used vehicle, ask to see the title before driving off the lot.

Salvaging Totaled Automobiles

This happens often at independent lots. A wrecked vehicle is made to appear in good condition in order to sell it. For example, the exterior may get a new coat of paint, minor body work (to fix dents, dings, and scratches) is performed, and new tires are put on. Meanwhile, major problems caused by a past flooding incident or severe accident are lurking beneath the shiny surface. When the automobile is purchased (“as is,” of course), the buyer is in for a world of heartache down the road.

Before purchasing a used model, take it for a thorough test drive. Also, have a trusted mechanic perform an inspection of the parts and systems under the hood. He’ll be able to identify hidden problems quickly. If the car has been in an accident, the mechanic will be able to see the repair work.

Moving Forward Carefully

In many ways, purchasing a used car from an independent dealership carries the same risks as buying it from a private party. You want to be sure that the vehicle hasn’t been in a major accident in the past. You also want access to the title after you make your purchase. By knowing what pitfalls to watch for, you can easily sidestep them on your way to finding a great bargain on a used vehicle.

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