Certified cars offer peace of mind
In these days of tighter credit in virtually all markets, consumers with less-than-perfect credit who shop new car dealerships are increasingly being steered to used vehicles rather than new vehicles.
The reason is that someone with a relatively low credit score — usually less than 700 — may not qualify for the higher monthly payment of a new vehicle.
A salesperson who doesn’t want to lose the customer may recommend a “certified” used vehicle. Typically, such a vehicle is no more than 3 years old and has the added benefit of being inspected and brought up to a manufacturer’s standard for a used car. It also typically comes with an extended warranty.
It sounds good, but is a certified vehicle a good deal for the buyer?
The first thing a shopper will notice is that the certified vehicle will carry a significant premium over a similar vehicle that isn’t certified.
For example, a 2005 Honda Accord LX sedan in outstanding condition with 20,000 miles would likely be listed by a dealer at about $16,000. If it’s a certified vehicle, shoppers can expect to pay about $1,100 more for the same vehicle.
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