Are you in the market for a used car but are nervous about what’s under the hood? Sadly, used car dealers know what you’re worried about and will trick you into letting your guard down with a “certified used car” label instead of offering a used car warranty.
What does it really mean when a used car is “certified”? Well, it implies to consumers that you are protected against buying a piece of junk because it went through a supposedly super-thorough inspection.
But what you really need to ask yourself is “Certified by whom?” And the answer is that the same people who are trying to sell you the car are also the same people certifying it.
Does certified mean under warranty? Not in most cases. So if the car does end up breaking down or having a major repair, you’re out of luck. But in rare cases a “certified” used car will include some warranty protection. However, it will have much less protection than any used car warranty you can buy yourself from an independent company and is going to cost you about the same once the 10% – 25% markup is accounted for.
…Wait a minute, what 10% – 25% markup am I talking about? A certified used car will often cost 10%-25% more (without you knowing of course) because of the perceived value. So for a $10,000 used car, that’ll cost you an extra $1,000-$2,500. Basically, you can almost always do better on your own and experience greater peace of mind.
Remember, even if the dealer’s inspection was thorough and correct, used car problems typically don’t appear until months or years after the purchase. That’s why even for a “mint condition” used car, a used car extended warranty is still essential.
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