Certified Used
Is it worth the extra cost for the inspection, correcting the tech bulletins, and the extended warrenty? Thanks
Posted Mar 12, 2016, 3:01 AM UTC
210
For most consumers the peace of mind is worth the additional cost. You have to make that decision for yourself.
1
Depends on the car.
1
Yes, it should only cost you the dealer around $500 bucks to certify it.
-7
It costs much more than that.
1
Isn't it a simple cost-benefit decision though? That is, used car comes in, dealership determines the cost of certifying it is more or less than the markup it can get for certifying that vehicle. Or are there some requirements that the dealership must certify certain vehicles?
1
Cost is the first part that comes into play, for Honda it's somewhere between 400-600 just for the actual certification.
Then at least for Honda I have to make sure the tires pass tread depth requirements and speed ratings. Then the body has to have minimal body work needed (scratches dents Etc). Then it has to pass mechincally in the shop. That on average is 1200-1800 dollars.
So yes you're right, it is cost benefit but it's not just the cost of the warranty. I also can't just arbitrarily mark up a car because it's CPO. I still have to price to move it.
1
So yes you're right, it is cost benefit but it's not just the cost of the warranty. I also can't just arbitrarily mark up a car because it's CPO. I still have to price to move it.
Of course, that's what I meant. I figured the dealership would be able to reasonably determine the total costs - let's say $1500 - and then determine if they'd be able to get an extra $1500+ from that car being CPO based on the market. And if the dealership thought it could [command a $1500+ premium] they'd certify it, but if not they'd just sell it as is.
1
Wow. I'll take 200 cars right now that only cost $500 to certify, let alone qualify for an actual CPO program. That'll be our starting point, then I'll need about 80-100/month going forward.
1
Me too please!
1
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