What is a Certified Pre-Owned Vehicle?

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The general definition of a certified pre-owned vehicle is a vehicle that has been refurbished. Then it gets inspected and certified by a qualified authority. Most often when a certified pre-owned vehicle is being sold, it comes with an extended warranty.

What is the Difference between a Certified Car and a Used Car?

A used car often gets sold as is. If the buyer wants an inspection done on it, then they have to arrange and pay for this themselves. They have to pay for any repairs. If the inspection reveals this. With a certified pre-owned car, these get taken care of at no cost to the buyer.

What is an Off Lease Car?

Many individuals like to lease their vehicles. They will enter into a contract to lease the vehicle for a number of months or years. Then once this term has ended the vehicle is off lease. The individual who held the lease on the vehicle has the option to buy the vehicle at the agreed-upon price. If they don’t then this vehicle can get put on the market for others to buy.

The Advantages of Buying a Certified Pre-Owned Vehicle

Anyone that is buying a used vehicle gets concerned about what they are buying. They also get concerned about who they are buying it from. Most feel safer when they are buying from a used car dealership. When one is buying a certified pre-owned vehicle, they can do so with greater confidence. The vehicle inspection was done. The certification gets provided by those who have the qualifications to do this.

Then the other factor is was anything identified during the inspection.? If there is anything wrong with the car, it gets determined then. The repairs are then done. So this takes the guesswork away from the potential buyer. Wondering if something is wrong with the car that they are not able to detect.

When one is buying a certified pre-owned vehicle, then it should be mostly problem free. For anywhere between three to five years.

Many dealerships dealing with certified pre-owned vehicles will also provide an extended warranty. This is because they are relying on the integrity of the inspection. As it was already completed on the vehicle.

The Downside to Buying a Certified Pre-Owned Vehicle

Even though you are buying a used car you can expect to pay more. When you are buying a certified pre-owned vehicle. It is because several of the risks that come with these used cars get eliminated. You are also possibly getting an extended warranty with it.

What to Look For When Buying a Certified Pre-Owned Vehicle

First, you are going to want to make sure you are buying from a reputable source. This way you can count on the inspection being authentic. Then you need to check out the inspection sheet. To determine exactly what the inspected covered. Also, to note any repairs done. Finally looking over the extended warranty if there is one is going to be important. You need to have a clear understanding of what your warranty covers.

The Advantages of Buying an Off Lease Vehicle

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Those that have leased a vehicle know what kind of care is expected to get put into the leased vehicle. This is one of the reasons why many individuals opt to buy their leased vehicle when the lease is up. For those that have never leased a vehicle, they may not understand. What the benefits of buying an off lease vehicle are.

There are several things that an individual leasing a vehicle must do.

They must…

  • Keep the vehicle below a specific mileage. If they go over this, then they end up with extra payments when the lease has expired.
  • They must keep both the interior and exterior of the vehicle in good condition.
  • Lessees are not allowed to make any modifications to the vehicle they are leasing.
  • Those leasing a vehicle are responsible for keeping up with regular maintenance. Also, most often it gets stipulated that this must get done at the dealership. One that is applicable to the vehicle.

These are all very important factors for keeping a vehicle in good condition. Those that are now going to buy an end of lease vehicle can use these factors to their advantage.

Aside from this the after lease vehicle has to go through an intense inspection. Before it gets put on the market for sale. So all the big concerns that come with buying a used vehicle are gone.

The Downside to Buying an Off Lease Vehicle

Again one can expect to pay more for an off lease vehicle compared to a standard used vehicle. It’s said that buying this type of car is the next best thing to buying a new vehicle.

Will Your Insurance Company Care if You Buy a Certified Pre Owned or Off Lease Vehicle?

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Your insurance company is not going to care which of these types of vehicles you buy. What they will care about is the cost of the vehicle. As well as the make and model. They get concerned about anything about the vehicle that will create a risk for them. For example, if you are buying a vehicle that the stats show are a problem for theft, this is a concern. It creates a risk for the Insurance Company. Also, if you buy a high powered or sports vehicle, this is another risk.

If you get concerned about your insurance costs, then keep this in mind. When you are thinking of buying a certified pre-owned vehicle. Or an off lease vehicle.

Resources

https://en.wikipedia.org/wiki/Certified_Pre-Owned
http://www.autos.com/car-buying/what-are-off-lease-cars
https://www.tada.ca/Certified-pre-owned-programs-provide-many-benefits
https://www.carproof.com/resource-centre/articles/a-guide-to-certified-pre-owned-vehicles
https://www.grooveauto.com/blogs/1252/index.php/2016/01/18/whats-an-off-lease-vehicle-what-are-the-benefits-of-buying-one/
https://www.thestar.com/business/personal_finance/spending_saving/2010/12/02/should_you_buy_your_offlease_car.html