Cars & Vehicles Car Buying & Selling & Rentals

What are the Differences Between Certified Pre-Owned & Extended Warranties?

    Inspection and Reports

    • When a dealer certifies a used car, he promises it has been thoroughly inspected and meets certain standards. Acura, for example, advertises a 150-point vehicle inspection, Ford offers a 169-point inspection and Honda provides a 150-point mechanical and appearance inspection. The dealer provides the inspection report and vehicle history report to the buyer.

    Certified Car Warranties

    • Dealers usually provide warranties for their certified cars. Honda's certified car warranty includes a 7-year/100,000-mile powertrain warranty from the vehicle's original in-service date and a 12-month/12,000-mile non-powertrain warranty from the original warranty expiration date. If the original warranty has expired, the new warranty runs from the Honda certified used car purchase date. Toyota offers a12-month/12,000-mile comprehensive warranty and a 7-year/100,000-mile limited powertrain warranty from the original new-sale date.

    Selection Process

    • Dealers usually select their best pre-owned cars to place in their certification program. Acura stipulates that its certified pre-owned vehicles must be newer than 6 years old with fewer than 80,000 miles on their odometers. Audi certified pre-owned vehicles must have fewer than 60,000 miles on them and be five years old or newer.

    Cost

    • Certification includes the costs of the inspection, repair and extended warranties in the sale price of the car. Dealers, thus, charge more for certified cars -- often as much as $1,000. Many buyers feel this premium is worth the peace of mind and warranty protection provided. Standard pre-owned cars do not offer inspection certification, and an extended warranty, which is usually not as comprehensive as that offered on a certified vehicle, is optional at an additional cost.

    Additional Benefits of Certified Programs

    • To entice buyers to purchase certified cars, dealers frequently offer additional benefits, including 24-hour roadside assistance, special financing, trip interruption insurance, toll-free assistance and a transferable warranty.

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