Used Car Guarantee

Certified Used Car, what does it mean?
For many people, certified used cars have become affordable alternatives to new cars. "Buying a certified used car is as close to buying a new car as you can get," says Philip Reed, Consumer Advice Editor with Edmunds.com.

"Certified sounds very official, but if you look below the surface, it may not mean very much," says Reed.

The "Factory" Certified Seal
That's why Reed says when shopping for a used car, make sure it is "factory" certified. "What this means is if you buy for example a Toyota, it will be worked on by certified Toyota mechanics and certified Toyota parts will be used to make repairs."

"Factory Certified" refers to used cars that are offered for sale by your local dealer with the support of the vehicle's original manufacturer, with warranties that extend beyond the initial coverage. Vehicles go through a lengthy check-up process, which means, "Doing an inspection on almost every moving part that will affect the reliability of the car," says Reed.

The original manufacturer of the vehicle is using their dealer network to:
Inspect the car
Determine if it is worth certifying
Then: Offering support for the vehicle for a period of time beyond the original warranty.

An Extended Warranty
Reed admits a factory certification is not a guarantee that you're getting a problem free-car. However, an extended warranty is also part of the deal. "A car warranty can be a very important part of the car buying decision because if there are unexpected repairs to be made, it can run into the thousands of dollars."

The extended warranty typically takes effect when the original warranty expires and, like a new car warranty, offers coverage for a certain number of years or miles, whichever comes first.

But Beware!
Many independent lots also offer their own version of certified vehicles. "In many cases on an independent used car lot, the certification means its been given a quick inspection and then um a relatively short warranty has been added," says Reed.

Used cars sold with third-party warranties are sometimes advertised as "certified" but are not truly factory certified because the authority and expertise of the vehicle's manufacturer do not stand behind the "warranty" in any way, according to Edmunds.com.

Reed says the term "warranty" may be misleading as third-party warranties are really extended service contracts. A true warranty offers coverage that is included in the original purchase price; Check out our "Understanding Extended Warranties" for more information on aftermarket service contracts.

Edmunds.com also says the downside to third-party service contracts is that they often obligate the customer to pay for needed repairs up front, then wait for a reimbursement check; some require the payment of a deductible that can vary from $50 to $400.

So, does your car manufacturer offer a certified used vehicle program? Click here and find out.

Bright Idea! Edmunds.com says before buying a factory-certified used car, still look over the vehicle and make sure it's in good shape. Take it for a test drive. Also read over the certification to see what it actually includes.

Did You Know?
According to a recent J.D. Power and Associates study, sales of certified used cars have increased 46 percent since 2000.

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