How Are Certified Pre Owned Cars Priced?

January 27, 2012

Car shoppers looking for a certified pre owned vehicle can take a look at how these offers are generally priced to evaluate whether the additional assurance is worth the price tag. Buying certified pre owned cars at used car dealerships can be a great value if the driver is focused on getting a warranty that can work with any of the auto maker's participating dealerships.

The General Cost of a Certified Pre Owned Deal

A certified pre owned car is one that comes with the mark of approval from the manufacturer. In these cases, manufacturer-certified technicians inspect the car or truck to make sure it is up to strict standards for its condition relative to age and mileage. The vehicle comes with a warranty that the manufacturer will stand behind.

Financial experts say a certified pre owned warranty tends to bump up the vehicle price by about 2% to 8% of MSRP (Manufacturer Suggested Retail Price). This can be higher or lower for different types of vehicles.

Looking for Value in a Certified Pre Owned Warranty

When you're evaluating the pricing of the contract, look at the value that a manufacturer certified warranty vehicle will provide. Make sure the warranty is transferable for the case of resale. Look for specific coverages, and check to make sure the manufacturer is really involved in offering the warranty product.

Finding the right deals on a certified pre owned car or truck can help a driver profit from a trouble free ride in the long term and more held value in their purchase.

Related Questions and Answers

How High can the Car's Mileage be and Still Get a Used Certified Pre Owned Stamp

Used and certified pre-owned are the two categories which describe vehicles that have been owned or driven by other people. In order to obtain a certificate proclaiming certified pre-owned status, a car must meet a number of requirements. The first two are age and mileage. These may vary by manufacturer. If the car fits these criteria, then it will undergo a very rigorous inspection and testing phase. Anything (within reason) will be fixed. If a problem can't be fixed economically, the car will not be able to be certified as pre-owned. On the average, if a car is less than five years old and has less than 60,000 miles, it can be a certified pre-owned vehicle.

What is the Car Year Restriction for Certified Pre Owned Vehicles?

Certified pre-owned vehicles undergo a very rigorous series of tests and inspections prior to being able to receive the sticker calling it a 'certified pre-owned vehicle'. If there are any mechanical problems that can be fixed economically, they will be. If they can't be fixed economically, the car won't be able to be certified. The first inspection the car has to undergo is the year of manufacture. The actual age allowed for a certified pre-owned vehicle will vary by manufacture. However, the average age allowed is five years. Though, Bentley allows the car to be as much as seven years old. Acura and all GM products are allowed to be as old as six years. On the other end of the spectrum, Cadillac vehicles may only be four years old in order to be certified.