Buying a car can be a daunting task- even with all of the myriad tools at your disposal. It’s easy enough to find the value of a used vehicle; Kelley Blue Book, NADA Guide, Edmunds, and Black Book (among others) all offer pricing information. Finding out about the mechanical condition of a used car can be a bit more difficult.
One good way to learn about your prospective purchase is through a vehicle history report, i.e. CARFAX, AutoCheck, etc. These reports will give you the history of the vehicle, including DMV records, previous owners, accidents, service and repair work, and more. It’s a good idea to learn the past of your prospective purchase , so you can avoid heartache in the future.
The next part of the pre-purchase education process- learning the current condition of the vehicle- can be a bit tricky. One word of caution here- inspect. Whatever you do, have someone qualified inspect the car. A relative or friend can help, but if you can afford it (you really can’t afford not to) get the car professionally inspected, or, better yet- certified.
In the past, the only way to purchase a certified pre-owned vehicle was through a dealer, and you’d pay a very significant premium. Recently, however, firms have sprung up offering certification services to private parties. This certification can be used to get a second opinion on a dealer car, or to take the guesswork out of For-Sale-By-Owner transactions as well.
Vehicle Certification programs vary widely, so be prepared to do your homework. Watch for these important factors when reviewing an inspection or certified pre-owned program:
1) Who is doing the inspection? Is it the selling dealer, or his friend in the shop down the street? Is it a local mechanic, who may perform no more than a few each year? The best bet is a trained, accredited, objective third-party inspector- not a dealership employee, friend, relative, or anyone else being compensated by the seller. This is akin to the “fox watching the chicken coop”- there’s simply too much pressure to “massage” the results.
2) Exactly what is being inspected? Ask to see a copy of a previous inspection, or at the very least, a copy of the checklist the technician uses. Compare it with others you may be considering, to see which service is the most thorough. Is the car put on a lift to check the undercarriage? Does the technician remove the wheels to inspect the brakes? How many components and systems are being inspected?
3) Is the program more than just a marketing ploy? Recently, many associations and groups have rushed to jump on the bandwagon of Certified Pre-Owned. The scent of money has drawn a number of folks into the market, who otherwise have nothing whatsoever to do with certification.
You’ll see programs from this group or that association, warranty companies, big dealer chains, etc., all of whom have one thing in common- their regular business is anything but vehicle certifications.
Would you be comfortable knowing your doctor’s practice was only part-time, and that his main job was at an insurance company? Most certification programs are run by warranty (insurance) companies or trade associations (who serve the dealer’s best interest- not the consumer’s).
Be sure you’re hiring a certification company whose business is certification- not warranties, magazines, or a dealer-focused association. In short, look for an objective, third-party certification company and stay away from an inspection performed by someone who profits on the sale of the vehicle.
4) What does the warranty cover, and what is the value of that? Most warranties that accompany certifications sound much better than they are. For example, suppose you’re considering a 5 year old car. Average miles on a vehicle that age is around 75 – 100,000 miles. Let’s say this one has just 60,000.
The warranty covers the drivetrain for 6 years, or 72,000 miles, from the in-service date. At first glance, you might think that’s a pretty good deal. The fact is- most of the coverage has already expired. It sounds great, but what you’re really getting is the difference between the coverage limits and the actual age and miles, in this case just one year or 12,000 miles of coverage- whichever comes first. Most folks drive 15 – 20,000 miles per year. You may really be covered for just 6 – 9 months.
Look for a warranty that begins coverage on today’s date, at today’s mileage. Don’t accept a warranty that has almost expired, or that has just 10 -20% of time or miles left. That is misleading, and simply isn’t fair.
5) How can I be sure that the certification is more than just someone’s opinion? Good question. Much of what a technician will tell you is just that- an opinion based on his experience. That’s good as far as it goes, but it isn’t the same as fact. Even the best mechanics make mistakes.
The only way to ensure you’re getting fact rather than opinion is to look for measurable, scientifically sound data. In other words, look for actual test results, measurements, fluid analysis- anything that can be duplicated and double-checked.
Congratulations! You’re about to make a very significant investment, in a vehicle you’ll have for a long time. Do yourself a favor and invest a little time and money upfront on a quality certification. You’ll avoid potential heartache, and probably save yourself a great deal of money in the long run.
