Certification. When it comes to buying a used car, it seems as though everything is certified. It's everywhere: on "Certified Pre-Owned" banners at dealerships, on melodramatic car commercials, on straight and simple dealer advertisements - where there's a used car for sale, that word will, sooner or later, creep around the corner and tap you on the shoulder. Psst. Hey. I'm certified. Wanna see my 1, 654 inspection item list?
So buyer, please beware. That car may be a certified waste of time, a bonafide barge that costs you hundreds of dollars and a boatload of self-respect. For unscrupulous characters, certification is a nifty word to put on banners and lure in unsuspecting customers without having certified anything but, perhaps, the fact that the car has four wheels.
This is not the intended meaning behind used vehicle certification. But for every shady operator who abuses vehicle certification, there are many legitimate programs that provide a complete overview of a vehicle's mechanical fitness. It's a simple concept when you peel away the marketing noise:
A certified vehicle is one that has passed a series of published tests by a seller who is willing to support the inspection with some sort of warranty.
Most car sellers take certification very seriously. A good used vehicle certification bridges the gap between new and not-so-new, and right now dealers have quite a few not-so-new vehicles for sale. Anything that will move these used vehicles - many just off a lease - is a strong benefit. The continuing incentive market for new cars has created a booming market for three year-old vehicles with low miles, perfect candidates for a used certified program. If you are a car buyer with $25,000 to spend, for example, it's an alternative that's hard to resist. According to a recent Autobytel survey, when asked what car they'd buy if they had $25,000 to spend, more than 50% would buy a "nicer used vehicle, with some miles but more options." The survey polled more than 2,000 people on autobytel.com and autoweb.com.
The increased appeal of certified vehicles is also evident at Toyota, one of the first manufacturers to offer the program. According to Norm Olson, sales operations manager for Toyota Certified Used Vehicles, more than 22,000 people purchased certified Toyotas last month - the most ever. The Autobytel survey also revealed the gaining influence of certification: more than 30% of people who took the survey claimed that they would not buy a used vehicle unless it was certified. And, according to Toyota surveys, 43.6% of certified buyers are first time Toyota buyers. That means, according to Olson, that many Toyota certified vehicle buyers are those who would have bought a lower-priced new car but found a better deal on the certified used market.
Tony Trejo, Autobytel's director of used vehicle products, believes that it's because people appreciate the security a certification offers. "People want to feel secure when it comes to a used vehicle purchase," said Trejo. They want the assurance that it's money well spent, that the car represented is what they're receiving."
That's what certification does - to the consumer, it takes a used car and gives it new car credibility. Much of that is perception, while the actual value of a certified program depends on the type of inspection that backs up the certification: what kind of starch the seller is willing to give a warranty program that supports certification, and whether you believe that the vehicle you're considering is of certified quality. If the lights don't work and the seller says it's certified, you may want to take a serious look at that inspection list. And there are a million different types of seemingly endless inspection lists, designed to make you think that the inspection is the most complete and exhaustive in the business. What matters is if the inspector examines the most critical and often-used elements of the vehicle - whether it runs, if everything is in working order, if fluids are filled and clean, among other points.
Olson stresses that it's not just the number of inspection points that matter - but also, what is being inspected. "At Toyota, we have 128 mechanical inspection points, and 52 appearance points," said Olson. "And every year, we refine those inspection points."
Based on what's covered, most lists are pretty much the same. The difference is in who offers the certification. There are two basic types of certified programs: manufacturer-based and non-manufacturer based. Manufacturer certifications are backed by the company that makes the car, and usually offer more in terms of quality and coverage. According to Trejo, manufacturer-backed certification programs are better than the non-manufacturer version because they have strict guidelines on what passes inspection - and which vehicles are worthy of inspection. "Manufacturer programs take only the cream of the crop," said Trejo. "Mileage is the basic limitation, but any type of structural damage will disqualify a vehicle." According to Olson, manufacturer programs are better because they offer factory-backed, nationwide coverage and are more stringent when it comes to the actual inspection. At Toyota, for example, dealers are subject to third-party surprise inspections, to make sure that the certified program is being properly implemented. "We have an independent group go to dealerships and spot check three or four vehicles," said Olson. "If they find that a dealership is not properly inspecting the program, we'll counsel them on how to do it. If that doesn't work, the worst case scenario is that we decertify the dealership - they will no longer be allowed to offer the certified program."
Here are a few key tips to look for when judging certification programs:
- Birthdate: Should only include vehicles within a certain age/mileage range, usually 5 years with less than 60,000 miles. This way, only the best used vehicles are certified.
- History: A good program will automatically exclude vehicles with damage.
- Inspection: Once candidate vehicles are selected, dealership technicians should inspect, fix and then certify the vehicles.
- Cost: Compare the certification premium to the non-certified equivalent vehicle, and check reliability ratings.
- Additional services: Be sure that the certified program you select offers roadside assistance and free towing.
- Research: Most manufacturers offer certified used vehicles, but not all inspections - or the coverage derived from a certification -- is equal. So before you buy, compare lists and programs.
By: Brian Chee
Photo credit: Automakers