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In today's vehicle market you have a lot of options. Once an exclusive domain used vehicles are now on almost every dealerships' lot. Even the manufacturers are getting involved in the used vehicle market. One way that the automotive industry is getting involved is with the pre owned car market.
What is a preowned car?
A preowned car is a used car that has been evaluated , typically by the manufacturer, as a high quality/highly desirable vehicle. These vehicles tend to be lower in kilometres, have excellent maintenance records and have been kept well by their original owner. The cars that are selected are provided with program incentives, usually a low finance rate, from the manufacturer.
Why would a manufacturer provide incentives for a pre owned car?
Manufacturers recognize that customers are seeking the least expensive option in the vehicle market. The majority of pre owned cars come from lease returns. In these situations, the manufacturer has the option of selling the car directly back to the dealership or sending the vehicle to auction. When a vehicle is sold to the dealership directly, the manufacturer will save money. One way that the manufacturer can make a vehicle desirable to the dealer is by qualifying it as a certified pre owned car.
Why not buy Brand New?
If you are looking to save some money with a minimal risk: a preowned car is the way to go. It is estimated that as soon as a brand new vehicle is driven off of the lot, the value has decreased anywhere from 10-20%. Why not save yourself this loss and buy a pre owned car? These vehicles are a good value if the following items are in place:
*A low finance rate
*A significant discount from a brand new vehicle
*A comprehensive warranty coverage
*Certification from the manufacturer
If one or more of the above items are missing, you may be better off with either buying brand new or taking the time to research the used vehicle market. Happy hunting.