Quote:
Originally Posted by Sample00
the name "Certified Used" is just a name that the automotive company came up with.
All dealerships in Alberta are required to run their vehicles through a mechanical fitness report, also known as a certification report. This is now required by law under AMVIC's rule. AMVIC runs the automotive industry in alberta.
When dealing on a used vehicle, always ask for the report. The dealership is required to disclose anything that may be wrong with that vehicle.
|
For the most part, "certified" is a loose term used with pre-owned cars.
Some brands like Acura, Volkwswagen, Audi and BMW to name a few, actually do have a certification program that means much more than an AMVIC-approved certification report.
"Certified Pre-owned" cars that come with 1 or 2 year extended warranties are the best IMHO, and are worth financing for more than 3 years as they are typically the ones in the best shape, and those brands also offer better interest rates.
Compare this:
Buying a used 2005 Honda Civic with 80,000 Kms for $12,500 from a Honda dealer. You could call this a "great deal".
48 month finance through a local bank @
6.9% (If your credit is good):
$314/month with $0 down.
$266/month with $2000 down.
Buying a used 2005 Volkswagen Jetta with 80,000 Kms for $14,500 from a VW dealer:
48 month finance through VW Canada @
2.9% (guaranteed on approval)
$336/month with $0 down.
$292/month with $2000 down.
The Jetta goes through a VW standard inspection which is a higher standard than an AMVIC-approved safety inspection and comes with a 2 year extended warranty covering the entire vehicle.
Purchasing an aftermarket warranty on the Civic would probably cost between $1400-$1800, bringing your Civic payments up by $30+ per month.
"Certified pre-owned" is a great way to buy a used car, just make sure its a real "certified" with a warranty that backs it up.
The same applies to other brands that have Certified programs, I used VW and Honda cuz they're way more affordable than the other brands I mentioned.