Used cars sales have skyrocketed over the past few years. 2.4 million more used cars were sold in 2020 than were sold in 2010. Did you know that there is more value in certified pre-owned vehicles? This substantial increase is likely due to a number of factors.
There are many benefits to purchasing a used vehicle instead of buying a new car. Of course, the primary reason why many drivers choose to buy a used model instead of a brand-new model is to save money. A used car costs significantly less on average than a new car of the same model.
Used cars also depreciate in value much more slowly than do new vehicles. A new car loses 20% of its value during the first year that you drive it. New cars depreciate very rapidly in value over the first five years of ownership, but then that depreciation slows down. This means that, if you buy a used car that is six years old and pay its depreciated value, its value will depreciate much more slowly throughout your ownership of it. Eventually, you’ll be able to sell that vehicle for a better portion of what you paid for it and get a larger percentage of your money back than you would be able to if you had purchased a new model of the same vehicle.
Buying a used car used to be riskier. At one time, most used vehicles were purchased from independent sellers, so it was difficult for buyers to be sure of the history and quality of the vehicle they were buying from an individual stranger. The increasing safety and security of purchasing used cars—largely due to more accurate vehicle history reports, car dealerships selling both new and used vehicles, etc.—has contributed to the rise in purchases of used vehicles that has occurred over the past decade.
Even so, many drivers remain wary of purchasing a used vehicle. Every driver wants their car to last as long as possible in safe, drivable condition. It is a common misconception that used cars are less safe or of lower quality than brand-new cars.
Certified pre-owned vehicles pose a unique solution to the skepticism and concerns many drivers have about used vehicles. These vehicles are pre-owned just like standard used cars, but they must meet many different requirements and pass a series of rigorous tests. Certified pre-owned vehicles are an excellent compromise between new cars and standard used cars. They cost slightly more on average than standard used vehicles, but their quality is very high and guaranteed. Here are 5 things you should know about certified pre-owned vehicles if you are in the market for your next vehicle.
Certified pre-owned vehicles are required to have fewer than a certain number of miles logged on them in order to qualify for a car dealership’s certified pre-owned vehicle program.
One of the biggest concerns many drivers have when purchasing a used car is the history of the vehicle.
Purchasing a certified pre-owned vehicle eliminates these concerns because most certified pre-owned models are required to have a clean, accident-free, single-owner history.
Maintenance and repairs are some of the most costly expenses associated with owning a car. When you purchase a certified pre-owned vehicle, chances are good that you won’t have to worry much about paying for its service.
Many certified pre-owned vehicles are protected by special warranties, which generally means that you won’t have to worry about paying out-of-pocket for expensive repairs or part replacements.
Because certified pre-owned vehicles are picked especially for their uniquely high quality, most of these vehicles must pass a multi-point inspection before they can be advertised as certified pre-owned vehicles.
This inspection ensures that all of the vehicle’s parts and systems are functioning in like-new condition, and knowing that your vehicle has passed such a rigorous inspection can give you peace of mind when you drive your certified pre-owned model off the dealership lot.
Various Special Offers
Most car dealerships extend various special offers that come with the purchase of a certified pre-owned vehicle from their dealership in order to incentivize drivers to buy a certified pre-owned model from their lot.
These special offers include limited powertrain warranties for a certain number of years or miles, free roadside assistance for a certain amount of time, reduced interest rates for auto loans, and much more.