How Much Can You Negotiate on Certified Pre-Owned Cars? A certified pre-owned vehicle can be the perfect option for you if you want to get a new car but don’t want to pay the new car prices.
Certified Pre-Owned vs. New
A certified pre-owned car can be purchased in much the same way as a new one, but at pricing more in line with those of used cars. Certified pre-owned vehicles are examined by qualified mechanics before being resold by the manufacturer with a warranty. You can be sure that a certified pre-owned car you purchase is in good mechanical condition.
Average Prices
Pre-owned cars that have been certified are a great bet, thus they usually cost more than a typical used car. A pricing guide like Kelley Blue Book will have a specific pricing category if you use it called “certified.” The average premium for a 3-year-old midsize car is about $850, and for a luxury car, the average premium is about $3,000.
Why Is Certified Pre-Owned Cheaper?
An automobile is an example of a depreciating asset. A new car starts losing value the moment you drive it off the lot, and over time, unlike a house or other asset that appreciates, it will be worth less.
A new car loses 10% of its value on average during the first month of ownership, according to CarFax data. This implies that your brand-new car, which you spent $35,000 on, will be worth roughly $31,500 in February. Its value will undoubtedly have decreased by at least 20% by January of the following year, making your one-year-old car, which is probably still in excellent shape if you have been taking good care of it, only worth $28,000. From that point forward, its worth will decrease by another 10% every year.
Car Warranty
Each manufacturer with a CPO program will provide you with a unique type of warranty. Some will provide you with a certain number of years and miles, while others may place more emphasis on the time frame. Make sure to inquire about the details. Are you purchasing a bumper-to-bumper warranty for your car, or is the only thing it covers powertrain issues? Does the time frame begin when the paperwork is signed, or does it also include the time the initial buyer had the car in their possession? Is there any remaining warranty on the vehicle that the initial purchaser did not exhaust?
Inspection Report
You can trust that everything inside a certified pre-owned vehicle is in good functioning order when you purchase one correctly––but you should still inspect your own. Focus on aesthetics: Are there scratches, dents, or stains inside or outside of the vehicle? Does it look like this vehicle was driven every day or like something owned by a meticulous driver who only took it out on the road once a week or so?
If you buy them, they will be the reality of your daily drive; they must be acceptable to you. However, it’s also crucial to pay attention to these factors because they’ll influence how much you should be willing to pay for the car. It’s critical to pay attention because two previously owned vehicles that are the same price may differ within.
To determine how soon you will need to perform maintenance on your car or replace important equipment, like the brake pads, you can also look at the manufacturer’s inspection report. You should be informed of the condition of each component of the vehicle that was examined in the report. Additionally, want to see the car’s vehicle history report and make sure it’s up to date.
Finding the Best Deals
On many local dealership websites, CPO vehicles are listed under whatever moniker the business has given to its CPO program. Make sure the vehicle is covered by the manufacturer and isn’t just marked as such. CPO autos are typically located aside from other vehicles in a visible section on a car lot.
It will be difficult to negotiate a good deal if you’ve found a car you adore. Many dealers will undoubtedly make an effort to convince you that the automobile is a fantastic value, which it is. However, you are still free to haggle over the price, just as you would with any other car you were considering buying.
Negotiate Like a Pro
Keep your cool and be aware of the car’s worth. A few makes and models in mind before you visit the dealer’s lot is beneficial. Look up the certified worth stated in a few indices, and be prepared to say what you are willing to pay for it. It’s preferable to walk away if the salesperson won’t budge and you’re getting a horrible deal. You will soon locate the ideal pre-owned vehicle in your budget range among the many certified pre-owned vehicles available across the nation.
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