What is a Certified Used Car?

When you are preparing to buy a used car, you may be interested in considering purchasing a certified used car.

This phrase is often tossed around, and yet you may not be aware of exactly what it means. This article covers the subject of certified used cars, which are also known as certified pre-owned cars.

Certified Used Cars Defined

The simple definition of a certified used car, or a certified pre-owned car, is a car which both carries a warranty and has also has undergone a safety inspection. As a result of this certification process which comes with a warranty, certified used cars typically cost more than do traditionally pre-owned vehicles. Much of the time, such a certified used car will have been restored to a like new state by the car dealership itself. Often times, these certified used cars include a warranty which is backed by the car’s manufacturer.

Background of Certified Used Cars

In the early years of the 1990′s, luxury car makers Mercedes and Lexus began offering certified used car programs. These were encouraged by the significant quantities of cars being returned at the end of leases. Rather than simply hand such cars over to used car lots and car auctions for re-sale, these manufacturers created certified used car programs which they hoped would attract new car buyers of luxury automobiles who were shopping on a budget.

These initial programs were wildly successful. At the present time, such certified used car re-sales comprise more than forty percent of all used cars sold. Among the reasons that these certified used car offers are so heavily utilized lies in the fact that such programs permit car buyers to get involved in a segment of the market which they would not typically be able to afford if they purchased a new car.

Types of Certified Used Cars

There are two types of used car certifications now. The original ones are backed by the car manufacturers themselves. The newer versions are offered by a few new car dealerships and a number of used car dealerships. These dealerships choose to promote their own certification programs. Typically, these are a means for them to ride the coat tails of the manufacturers’ successful and practical programs. If you opt for going the route of a certified used car, you should probably stay away from the dealership backed certified used cars. They often times turn out to be risky, especially as compared to the gold standard of the ones offered by the car manufacturers. If you do choose one, make certain that you get a copy of the repair and inspection check list for the certified used car that you are considering.

The Convenience of Certified Used Cars

The car manufacturers and dealerships alike choose to promote certified used cars because they understand that car buyers prefer the idea of shopping without going through hassles. They also know that these types of certified used cars can be sold for more money. Consumers like them since they get a feeling of peace of mind with a warranty and with the confidence instilled by knowing that the dealership’s service department has thoroughly checked out the car itself.