Used Cars: "Certified" No Substitute for Extended Warranties
Thinking about a used car extended warranty? Nervous about
what's under the hood? Used car dealers are feeling your pain
all the way to the bank. In an ironic twist, "pre-owned vehicle"
dealers have found a way to profit from their bad reputation.
No, they're not just selling overpriced used car extended
warranties anymore. They're charging a 10%-25% markup on used
cars "certified" (by them) not to be pieces of junk. The
accompanying "certified" used car warranties in fact usually
carry much less protection than the best used car warranties,
which you can buy yourself online. Who needs a used car warranty
if your jalopy is a "certified" machine?
But even paying 10%-25% more won't eliminate risk. Thorough
extended warranties for used cars are necessary, "certified" or
not. In some cases, a half-hearted inspection means the
certification may not be worth the paper it's written on. Used
car problems often only appear months or years after purchase.
That's why even for mint used cars, used car extended warranties
are essential.
Worse, "certified" used cars don't always come with any extended
used car warranty coverage. When a "certified" used car warranty
is included, it usually has much less coverage than a new car
warranty. Even most standard pre-owned vehicle extended
warranties offer much more protection than most "certified" used
car warranties.
You can almost always do better on your own. An independent
inspection and a used car extended warranty provide better peace
of mind, often at a lower price.
Certified Used Car Inspection: Used Car Extended Warranties
Still Needed The cornerstone of a "certified" used car program
is the supposedly super-thorough inspection. There are good
reasons to think that the inspection does not replace an
independent inspection or used car extended warranty coverage.
*Are inspections really added value? Don't you wonder why
dealers aren't inspecting all their cars before taking delivery
themselves? Car dealers aren't idiots, at least not with cars.
Anyone who's had to haggle over a trade-in knows that. The big
question is whether the dealership will disclose everything it
knows. Trust is still an issue with "certified" cars.
*Certified by whom? Think about it: the same people who are
trying to sell you the car are also "certifying" it. Yes, you
read right: the "certification" is usually done by the
dealership selling the car. If there's any manufacturer
oversight, it's often just an occasional inspection of the
dealer's inspection.
*Duplicate inspection. You should have any used car, "certified"
or not, thoroughly inspected by an independent mechanic. You're
up against an industry that demonstrates about as much
trustworthiness as, well, used car dealers. Do not give up your
first line of defense.
*Limits of inspections. No inspection in the world can foresee
every possible problem. Oftentimes, something that breaks a few
months after purchase really was fine when the car was sold--or
was virtually undetectable. When--not if--something gives out,
you'd better have a used car extended warranty.
"Certified" Used Car Warranty Coverage under the Hood The
implied selling point of "certified" used cars is they won't
break. That kind of makes used car extended warranties seem
unnecessary. Naturally, some buyers may wonder what will be
happen if something does break anyway. In order to ease those
inquiring minds, "certified" used car warranties often come
included, or are at least implied. Sadly, too few people will
inquire further about what the "certified" used car warranty
covers.
*Does certified mean "under warranty"? Not necessarily. The
major manufacturers' "certified" programs usually include some
extended warranty protection. But oftentimes, "certified" cars
sold outside of manufacturers' programs do not come with any
extended warranty coverage. If it does break, tough luck.
*How good's the warranty? The GM Certified Used Vehicle Warranty
is only for 3 months or 3,000 miles! Ford offers longer
"certified" warranties. But they generally aren't
bumper-to-bumper, covering only the "power train." Forget about
the little extras like the roof or the doors. Right off the
internet, you can buy extended warranty used car coverage that
is generally bumper-to-bumper and lasts several years.
"Certified" Used Cars: Extended Warranties Still Needed
"Certified" used cars offer two things: an inspection and a used
car extended warranty. Arguably, neither is worth the price.
*Inspection. Let's face reality. The junky used car problem
doesn't exist for want of dealer inspections. Lemons get sold
for one of three reasons. a) The defect did not show up in the
dealer's own inspection. b) The dealer is trying to sell a car
whose defects were already known. Or sometimes c) the buyer
knows about the defects but is guilty of wishful thinking. In
none of these cases will a "certified" inspection provide the
protection of an independent inspection and extended used car
warranty.
*Warranty. A "certified" used car will often cost 10%-25% more.
For a $10,000 used car, that's $1,000-$2,500. An extended used
car warranty from an independent auto warranty company will
often cost about the same. But the best used car warranties will
provide a lot more protection than "certified" used car
warranties. Given that fact, you may end up getting an
independent extended car warranty anyway.
Worst of all, certified used cars come with an expensive risk.
They tempt you to let your guard down. Ford even issued a press
release headlined "Pre-Owned Vehicle Program Reduces Customer
Buyer Beware." As if that were a good thing.
Of course, in the end, you may buy a "certified" used car
anyway. These days it seems there are fewer and fewer used cars
that aren't "certified." Just make sure to get an independent
inspection and an independent used car extended warranty.
"Certified" or not, it's still a used car.
About the author:
Joel Walsh, a freelance automotive writer recommends Auto
Service Warranty, Inc. Where you can get a used car extended
warranty quote in five-seconds:
http://www.AutoServiceWarranty.com
Written By: Joel Walsh
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