Generally speaking, certified used cars are:
i. Vehicles that have passed a thorough inspection which makes them eligible for an improved warranty and special financing.
ii. Less than five years old with less than 50,000 miles.
iii. The certifying authority, which is usually the dealership, ensures that the maintenance is up-to-date. All normal maintenance such as transmission flushes, oil changes, etc. are completed.
iv. The parts of the car that are wearable, such as brake pads and tires, have at least 50% of their life left.
After the maintenance is completed and the inspection is done, the dealership declares the vehicle "Certified". Used cars that are "certified" typically have a better warranty than a used car that is not. In addition, they can qualify for used car financing rates that are better than average.
In most cases, certified used cars are a good deal, and you should buy one if you can. However, before you buy a certified used car there are a few things you need to watch out for.
1) When a used car is certified and is less than a year old, it is usually a used rental car.
Buying a used rental car isn't a bad thing, necessarily. They are usually well maintained and an excellent value, but they aren't for everyone. If you are not sure, check out the advice we have about buying a used rental car.
2) All certifications are not equal.
Ford, Toyota, GM, BMW, and other auto manufacturers have great certification programs that are superior to dealerships. Dealin' Dave's car lot may offer certifications that are, in reality, just a sales gimmick. If you can, it is usually better to buy a car that an auto manufacturer has certified.
Lastly, always request the "vehicle certification inspection" report before you buy a certified used car. This report, filled out by the inspecting mechanic, gives the details of his/her opinion of the functions and various parts of the vehicle. After the dealerships certify a vehicle, they must keep the reports on file. Many times they are required to give a copy to whomever buys the car. You should buy your car somewhere else if the dealership either doesn't have the report or especially if they refuse show it to you.
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