Here’s How Unreliable Car Brands Benefit From Certified Pre-Owned Programs
Doug DeMuro
April 26, 2016
Jalopnik
Today, I’ve decided to address certified pre-owned programs. More specifically, I’m going to tell you why certified pre-owned programs actually benefit car companies with a reputation for poor reliability.
For those of you who do not live in a country where certified pre-owned programs exist, such as the country of Europe, please allow me to explain what the hell they are. Here’s the gist: if you buy a new car, you get a warranty, and everyone is happy. But in the past, if you bought a used car, you got no warranty, and everyone was sad. So automakers came up with an idea: why not sell used cars with a warranty and come up with some catchy name beyond “used cars with a warranty”? And thus, certified pre-owned was born.
So the way it works now is, if you want a car with a warranty but you don’t want to spend big money on a new model, you buy a certified pre-owned vehicle. This way, you get a fairly recent car with a long, factory-backed warranty that’s almost as good as a new one. Meanwhile, dealers get to sell their own car a second time, with a higher profit margin than a typical used vehicle. Everyone is happy again.
CONTINUE AT LINK ABOVE
Doug DeMuro
April 26, 2016
Jalopnik
Today, I’ve decided to address certified pre-owned programs. More specifically, I’m going to tell you why certified pre-owned programs actually benefit car companies with a reputation for poor reliability.
For those of you who do not live in a country where certified pre-owned programs exist, such as the country of Europe, please allow me to explain what the hell they are. Here’s the gist: if you buy a new car, you get a warranty, and everyone is happy. But in the past, if you bought a used car, you got no warranty, and everyone was sad. So automakers came up with an idea: why not sell used cars with a warranty and come up with some catchy name beyond “used cars with a warranty”? And thus, certified pre-owned was born.
So the way it works now is, if you want a car with a warranty but you don’t want to spend big money on a new model, you buy a certified pre-owned vehicle. This way, you get a fairly recent car with a long, factory-backed warranty that’s almost as good as a new one. Meanwhile, dealers get to sell their own car a second time, with a higher profit margin than a typical used vehicle. Everyone is happy again.
CONTINUE AT LINK ABOVE