Yes, you’ve got your eye on that pristine beauty on the dealer’s showroom floor. But before you take that final fateful step, consider buying a slightly used vehicle instead of a brand-new one. As we’ve explained in other articles on ownership costs, a new car may be very costly to own - most of all, because of depreciation.
If you buy a used vehicle, you can help beat the high cost of depreciation and get more car for your buck at the same time. Of course, many motorists fear that buying a used vehicle means buying someone else’s troubles. But most automakers are addressing this concern with factory-certified used-car programs. Also, thanks to a surge in leasing programs, dealers often find their lots crowded with late-model used cars coming off leases. To move all these used vehicles off their lots, dealers are transforming the cars and trucks into cream puffs and then wrapping them in the security blanket of a factory warranty. These programs have become known as Certified Pre-Owned, or CPO for short. The upshot: You can have the important benefits of a new car at a used-car price.
IntelliChoice evaluates manufacturer-certified programs based on their consumer benefits. Our analysis considers certified warranties, inspection lists, roadside assistance benefits and return/exchange provisions. Each year we produce our annual Certified Pre-Owned awards to recognize the best manufacturer programs in both the Popular and Premium categories.
If you are considering buying used, it’s also recommend that you ensure the price is fair. Check the resale values of the model and trim you are researching. Our website will show you the range of current values of most cars and trucks from wholesale to retail (or private party) purchase. Be sure to select standard and optional equipment and enter the number of miles as well as the condition of the vehicle. Note that spikes in fuel prices, limited or excessive inventory, or well-publicized government recalls can cause rapid fluctuations in the current market value of used cars.
If you want to help ensure you’re making a sound financial purchase on a late-model used car, IntelliChoice also publishes ownership costs for the three latest years of pre-owned cars and trucks. Each vehicle is given a value rating based on its overall ownership costs for the three model years covered.
Lastly, make certain you get a copy of the vehicle history report for the car and ensure that it’s “clean” or at the very least acceptable to you. While not a perfect guarantee, it will show ownership and reported accident information for used vehicles based on the VIN. Two such companies offering this type of report are CARFAX and AutoCheck (Experian).
