Every driver has to ask themselves whether they feel a certified pre owned car is worth the additional price. Buyers who are looking at certified pre-owned used-car deals are seeking out top of the line safeguards for their purchase. Other kinds of extended warranties are generally lower in price, but come with more restrictions and less value for the long term.
The Price of a Certified Pre-Owned Car Deal
Some auto experts indicate that dealerships tend to mark up a certified pre-owned car by 2% to 8% of its value for a manufacturer certified warranty. The additional price can be lower for some categories of cars, like economy cars or small SUVs. For specialty cars, the increase in price for a certified pre-owned vehicle can be much higher.
What You Get
Buyers who take a certified pre-owned vehicle with a manufacturer's warranty get assurance that the vehicle meets the automaker's standards according to its age and mileage, and that it is under full coverage for a certain period. Some of these agreements are transferable to subsequent owners. Others include limitations and deductibles. Read the fine print of your certified pre-owned vehicle warranty to see exactly what you get, and whether it's worth it for you to include this product in your used-car purchases from local dealerships. Be sure to distinguish “true CPO” deals from products of a specific dealership or third party business, even if that product bears the name of the manufacturer. A few quick questions and a little research will show you whether the warranty is truly a manufacturer certification or not.