Can’t afford a new car? It’s not surprising. Kelly Blue Book reports the estimated average price of a new car is somewhere around $35,000. If that is just too big of a hit to your pocket book, you may want to consider a certified pre-owned vehicle. Most of the certified pre-owned cars come with a manufacturer-based certified pre-owned (CPO) warranty.
A certified pre-owned vehicle is going to cost you more than an uncertified used car, but still less than a new car. Another plus is you won’t be buying someone else’s headache and you’ll have the manufacturer’s warranty for peace of mind if something does go wrong.
What comes with a manufacturer-based CPO warranty? This will depend on the make, model and manufacturer of the vehicle. Depending on the car you choose, you could get a very good warranty. Some CPO warranties offer bumper-to-bumper coverage for 10-year/100,000 miles. Most of the warranties have limitations with some things not covered, but most will cover the major components of your car’s engine and other major systems such as brakes, steering and electrical systems. Not all CPO warranties are created equal, so it pays to shop around.
Some of the warranties are so good that if you manage to get a dependable, low-mileage car under manufacturer warranty, it is almost the same as buying new. Here are some things to keep in mind when comparing warranty plans: what is the mileage limit, what components are covered, which parts are reconditioned (you can see this in the inspection report for the vehicle), are returns/exchanges allowed, and check if any additional services are provided. Some warranties cover extra services such as rental reimbursement, trip interruption coverage, roadside assistance and a free trial satellite radio subscription.
Take some time to do your research, compare warranties carefully, and you are sure to find a great deal. Happy car shopping!
