When consumers are in the market for a new vehicle and they dislike the depreciation that occurs when they drive a brand-new vehicle off the lot, or when they’re on a budget, sometimes a late-model used car sounds like it may be a wise choice.
However, with so many used cars on the market, how do consumers know what used car to buy? How do they avoid buying a car that ends up being a bad investment? And, how do they know if their used vehicle is covered under the lemon law?
In the 1990s, automakers started rolling out certified pre-owned vehicle (CPO) programs that took advantage of lease returns and trade-ins with low miles. Since consumers were returning vehicles to dealerships in excellent condition and low miles, manufacturers thought it would be more profitable to create CPO programs, and resell these quality vehicles rather than sending them to auction.
Certified pre-owned vehicles typically involve:
- A detailed inspection
- Manufacturer’s warranties
- Peace of mind for the consumer
Do CPOs Cost More?
As a general rule, CPOs do cost more than non-certified used cars, trucks, and SUVs. This is understandable since CPOs go through a detailed, multi-point inspection and reconditioning. What’s more, CPOs come with a manufacturer’s warranty, which means they are usually still covered under California’s lemon law. The fact that CPOs are still covered under a manufacturer’s warranty is critical to consumers because it gives them legal recourse if their vehicles turn out to be defective.
If something were to go wrong with the vehicle and it was still covered under the warranty, the manufacturer would have to repair it, and if the defect was substantial and the repair shop couldn’t fix it after a reasonable number of attempts, the consumer would be entitled to a replacement or a full refund from the vehicle’s manufacturer. For this reason, CPOs can be a wise option for consumers looking to purchase a used vehicle.
Are you having problems with your certified pre-owned vehicle? Contact Norman Taylor & Associates to find out if you have a lemon law claim.