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Buying a Certified Pre-owned Vehicle (CPO) – Part III

I recently helped my daughter decide on which used SUV to buy. She was surprised when I recommended that she and her husband look at certified pre-owned (CPO) vehicles at major dealerships. I have written extensively on how to buy and sell vehicles privately and online.

I explained to my daughter that she has two options to be fully protected when buying pre-owned vehicles:

1.    Buy a certified pre-owned vehicle (CPO) from a dealer

2.    Create your own “virtual” CPO program.

The benefit of buying from a dealer is that you can be in and out in a few hours. Dealers can provide financing and complete all the paperwork, saving you a trip to the DMV. I recommended this option for my daughter’s family because of their busy lifestyle.

However, consumers generally pay a premium when buying a CPO vehicle from a dealer.  When I was an Internet Manager for a major dealership, the added cost for certified vehicles was in the range of two to fivepercent. Some luxury models were more, up to eight percent.

The good news for savvy buyers: the benefits of a CPO program don’t diminish even if you make a steal-of-a-deal on the certified car itself. So the actual added price to the consumer for a certified vehicle will depend upon how good you are at negotiating price.

Create a Virtual CPO

There are three components to any certified program. However, creating your “virtual” program adds a significant amount of work to the process. Also, keep in mind the basics of buying any used car. You may want to read my free report, The 8 Biggest Mistakes Used Car Buyers Make and How to Avoid Them (seebelow).

Your virtual CPO program will include:

1.    Certification/selection. There is no actual entity to officially certify your car. However, selecting an equivalent vehicle means narrowing your search to only recent model years with a limited number of miles.Because both factors have a direct impact on the price, you’ll have to set these limits based on the delicate balance between your needs and your finances.

If buying privately, have your mechanic perform a pre-purchase inspection. A detailed checklist and a competent mechanic ensure that you’ll know what deficiencies are present so you can negotiate a lower price. For example, ask for the cost of repairs to be subtracted from the lowest price negotiated. Or simply say no to a vehicle with too many problems.

If purchasing from a dealer, ask to see the vehicle inspection report. If one is not available, in most cases it’s best to pay your mechanic to complete his inspection before proceeding.

2.    Warranty. Private companies sell extended service contracts, also known as extended warranties. This allows you to a vehicle from a private seller and get an extended warranty for added protection. Many buyers assume incorrectly that these are only available from dealers.

A vehicle’s remaining manufacturer’s warranty is taken into account when getting quotes on extended warranties from private companies. Perform an Internet search to find out which companies to contact for quotes for the specific vehicle you are looking to purchase.

If buying from a dealer, remember that extended warranties are high-profit items and dealers are always negotiable. You can comparison shop by getting a quote from a private company online (see above).

When comparing one program to another, be sure to consider what is covered and what is not covered, as well as price.

3.    Extras. Certified programs often include extras such as roadside assistance, trip interruption programs, free vehicle history reports, and other goodies. Roadside assistance is available from many sources, including the American Automobile Association, insurance and even phone companies. You can purchase vehicle history reports directly from CARFAX.com or AutoCheck.com. You may have to do without some additional benefits if you go the virtual CPO route.

If you have the time, energy, and inclination, developing your own virtual CPO program can save you money.But remember, it’s a lot more work and it’s buyer beware. Good luck!

Missed the beginning of this series? Review Part I – Part II.

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As an Automotive Journalist, L. James Johnson contributes articles to High Gear Media Automotive websites, where this article was first published: http://www.allcaradvice.com/blog/1045179_buying-a-certified-pre-owned-vehicle-cpo-part-iii.

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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com. You can also download his FREE report, The 8 Biggest Mistakes Used Car Buyers Make & How to Avoid Them!

Buying a Certified Pre-owned (CPO) Vehicle – Part II

My daughter recently asked for help deciding which used SUV to buy. She was surprised when I recommended that she and her husband look at certified pre-owned (CPO) vehicles at major dealerships. Her surprise resulted from my havingShe was surprised because I have written extensively on how to buy and sell vehicles privately and online. She was expecting a lesson on how to accomplish both.

In my opinion their lives are far too busy to invest the time that is needed to create what I call a “virtual” CPO vehicle. The latter requires savvy and lots of legwork: making a great deal on a used vehicle, completing a pre-purchase mechanical inspection, then buying an extended service contract (extended warranty).

What are the benefits of going directly to a dealer for a manufacturer’s certified pre-owned vehicle? A CPO vehicle generally meets a higher standard. Its benefits can be divided into three categories:

• Certification/selection To qualify as certified pre-owned, a vehicle must meet an age and mileage limit. For exampleFord requires its certified vehicles to be no more than six years old with less than 80,000miles. Vehicles also need to pass an extensive multipoint inspection with any deficiencies fixed. Ford uses a 169-inspection process. These figures vary for each manufacturer.

• Warranty. The manufacturer, not the dealer, provides the warranty. It’s handled like a new car warranty:the owner can take the vehicle to any authorized dealer in the 48 states.

The warranty is divided into two categories:

1. Powertrain warranty. This includes the engine and transmission, the two areas that can be the most expensive to repair. Using Ford as an example, its CPO powertrain warranty covers six years or 100,000 miles (whichevercomes first) based on the in-service date, or when the vehicle was initially sold.

2. Comprehensive warranty. Also known as the “bumper-to-bumper” warranty, the comprehensive warranty covers items not included in the powertrain warranty, such as electrical, electronic, and other mechanical issues. Not all CPO programs include a comprehensive warranty. Those that do vary in length, depending on the manufacturer.

Consumers should be aware that dealers may offer to extend the comprehensive warranty for a fee, in some cases matching the length of coverage of the powertrain warranty. This can be advantageous, but needs to be considered on a case-by-case basis. Variables include what’s covered, the term of coverage, and the cost.

3. Extras. These can include a free vehicle history report, 24/7 roadside assistance, trip interruption service,and in rare cases a return/exchange program, along with other goodies.

Time is Money

You can literally walk onto a dealer’s lot and drive off in your next vehicle a few hours later (something my daughter and her husband did). Dealers can take care of the financing and complete all the paperwork, saving you a trip to the DMV. You pay a premium for this option, but it is well worth the price to many people.

If you have the time, a virtual CPO vehicle may be your best option because it’s usually less expensive. Creating a virtual certified pre-owned vehicle will be covered in Part III of this series. Missed the first segment of this series? Review Part I here.

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As an Automotive Journalist, L. James Johnson contributes articles to High Gear Media Automotive websites, where this article was first published: http://www.allcaradvice.com/blog/1045178_buying-a-certified-pre-owned-vehicle-cpo-part-ii.

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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com. You can also download his FREE report, The 8 Biggest Mistakes Used Car Buyers Make & How to Avoid Them!

Buying a Certified Pre-owned (CPO) Vehicle – Part I

My daughter was surprised. She had asked for help in choosing a used SUV and I recommended that she and her husband look at a certified pre-owned (CPO) vehicle. “But Dad,” she said, “you literally wrote the books on how to buy and sell used cars and you want us to pay a dealer extra for a certified car?”

It’s true that I used to be an Internet manager for a major car dealer and have since written on how to sell cars online, as well as how to avoid making mistakes when buying used vehicles.

Based on that experience, I explained the facts of life to my daughter: I want my two grandchildren (along with my daughter and her husband, of course) in a safe vehicle that’s been fully checked out by a mechanic and carries a warranty for future problems.

You can get these benefits two different ways:

1. Buy a CPO vehicle from a dealer.
2. Create your own “virtual” CPO vehicle, purchased privately (or a great deal on a non-CPO vehicle from a dealer), complete a pre-purchase mechanical inspection, and buy an extended service contract (extendedwarranty).

Choosing the Right Option

When my daughter informed me that their Toyota Matrix was too small for their growing family, I found myself extolling the virtues of CPO vehicles. As much as I would have enjoyed teaching her and her spouse how to create a virtual certified vehicle–and put much-needed cash in their pocket–a formal certified program was their best choice. Here’s why:

• Time is money. My daughter and her husband have a busy life with little time to spend searching for a private seller who has a gem of a vehicle at a fair price. Buying privately can be time-consuming: a lot of phone calls, test drives, mechanical inspections, and other long-drawn-out tasks.

• One-stop shopping. You can literally walk onto a dealer’s lot and drive off in your next vehicle a few hours later (this is what my daughter and her husband did). Dealers can take care of the financing and complete all the paperwork, saving you a trip to the DMV. You often pay a premium for this option, but it’s well worth the price to many people.

Benefits of a CPO Program

When you buy a CPO vehicle, you are getting a used vehicle that meets a higher standard. Peace of mind can be priceless. To qualify, a CPO vehicle can only be a few years old with a limited number of miles. It must pass an extensive mechanical inspection with any deficiencies fixed. Then the manufacturer–not the dealer–adds an extended warranty. If something does go wrong, the buyer is protected.

In addition, there are usually other benefits that can include roadside assistance, trip interruption service, a free vehicle history report, and other goodies.

In Part II of this series we take an in-depth look at the three components of every certified pre-owned program:1) certification/selection 2) warranty 3) extras.

Part III teaches you how to create a virtual CPO option where you gain all the benefits of a certified program but get to keep much-needed cash in your pocket.

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As an Automotive Journalist, L. James Johnson contributes articles to High Gear Media Automotive websites, where this article was first published: http://www.allcaradvice.com/blog/1045188_buying-a-certified-pre-owned-vehicle-part-i.

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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com. You can also download his FREE report, The 8 Biggest Mistakes Used Car Buyers Make & How to Avoid Them!

Choosing the Right Color for Your New Car

Are you concerned about making a color choice that could make it more difficult to sell or trade your car in a few years? According to DuPont Automotive, you can’t go wrong if you choose a white exterior. DuPont’s Color Popularity Report crowns white as the most popular color for new cars in North America for the third straight year.

Surprising to some buyers is the fact that black is a close second, with silver not far behind in third place.Although gray comes in fourth, blue and red are increasing in popularity and rank fifth and sixth.

New car buyers take into account many factors when choosing a color. They not only have their own personal preference, but that of a spouse or other family members to consider. Savvy car buyers also don’t want to choose a color that buyers won’t like in three or four years, making it harder to resell.

Here are the top ten colors in North America:

1.       White            17.8%

2.       Black            17.0%

3.       Silver            16.7%

4.       Gray             13.0%

5.       Blue              12.4%

6.       Red              12.0%

7.       Brown             5.7%

8.       Green             2.8%

9.       Yellow/Gold     2.3%

10.     Other               >1%

What the Future Holds

Color remains a major reason a given buyer chooses a specific car to buy. Yet car makers need to recognize color trends three years in advance to be able to integrate changes into the manufacturing process.

Here are the current trends DuPont identifies: both white and silver have been slipping in popularity in recent years while black is gaining ground. The subtler tones now available have also increased the popularity of blue and red.

From the Front Lines

As Internet Manager for a major car dealer, I saw two types of buyers walk onto a dealership’s sales lot. I experienced first-hand the agony some buyers went through deciding on color: “What’s it like to maintain?” “Which color is safer?” “Which color hides scratches and blemishes the best?”

The second category of buyer knows exactly what color they want. Some are actually willing to switchmodels, and in rare cases manufacturers, in order to get the color they want.

Other buyers in this category know what they want but are more flexible. Flexibility is often a good thing,especially when new car inventories are tight. Being willing to accept your second or third color choice can help you to get your new car now and at the price you want. The least advantageous option is waiting to a point in the future for the exact color you want when the loss of manufacturer and dealer incentives may increase the cost of the car beyond what’s practical.

Whichever category you fit in, the above chart will help you understand what other buyers are choosing for their new car exterior colors. The next DuPont Automotive Color Popularity Report is due late in 2010.

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As an Automotive Journalist, L. James Johnson contributes articles to the High Gear Media Automotive websites, where this article was first published: http://www.allcaradvice.com/blog/1045177_choosing-the-right-color-for-your-new-car.

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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com. You can also download his FREE report, The 8 Biggest Mistakes Used Car Buyers Make & How to Avoid Them!

Selling Car on Craigslist – How To

One of the biggest mistakes sellers make when posting ads on Craigslist is not including enough information.

I posted thousands of ad on Craigslist as an Internet Manager for a major car dealer in the San Francisco Bay Area. I finally learned to include a simple template at the bottom of the ad to make sure I didn’t forget crucial data. I always copied it after a complete, normal ad and didn’t worry about duplicating information. I’ve copied that template below.

The second mistake most sellers make is not pricing their vehicle correctly. Price it too high and no one calls, too low and you leave money on the table.  That’s why car dealers use a pricing strategy versus picking a price and sticking with it. I explain how to price your car by developing your own pricing strategy in my new book, HELP! I Gotta Sell My Car NOW!

In HELP! NOW! I also provide other car dealer Best Practices that can benefit private sellers. These include how to safely test drive, how to negotiate like a pro, and how to complete the paperwork.

I also teach you how to write a compelling and personalized ad for your car that will help you sell it quickly and profitably. Also, which pictures to take, and even how to do a video walk around, something that I used as a secret weapon when I was actively selling cars as an Internet Manager. This is simple to learn and will help set your ad apart from the many dealers and private sellers posting on Craigslist.

You can download FREE chapters of HELP! NOW! to see if you want the entire book? Look on the right hand column of this page.

Buying a car?

Download my FREE report, The 8 Biggest Mistakes Used Car Buyers Make and How to Avoid Them! Learn from my experience as an Internet Manager – don’t make mistakes that can cost you hundreds, even thousands of dollars. Get this PDF report for free. Look on the right side of this page.

A note about the Craigslist Ad template

If the following items don’t apply (or you don’t have the information), then simply delete them from the template before posting it to Craigslist:

Gas Mileage – 

Vehicle History Report Available – Yes

Video Walk Around Available – Yes (ask me to send you a link)

Pictures – More available, just ask.

Clear Title? – Yes

Craigslist vehicle information Ad template

Copy the info below AFTER the content of your actual ad. It’s fine if information is duplicated. BTW, it’s better not to have a space between each line, but this is a wordpress site and extra space may be included in the template you receive:

Here are the vehicle details:

Year –

Make – 

Model – 

VIN – 

Miles – 

Body Style – 

Engine – 

Transmission – 

Drivetrain – 

Exterior Color – 

Interior Color – 

Gas Mileage – 

Vehicle History Report Available – Yes

Video Walk Around Available – Yes (ask me to send you a link)

Pictures – More available, just ask.

Clear Title? – Yes

Price – 

Contact –

What a completed Craigslist Ad template may look like

Here are the vehicle details:

Year – 2008

Make – Nissan

Model – Rogue S

VIN – JN8AS58T48W0136B

Miles – 16,441

Body Style – SUV

Engine – 2.5L, 4 cyl

Transmission – CVT – Automatic

Drivetrain – FWD

Exterior Color – Silver

Interior Color – Black

Gas Mileage – 22 mpg/city, 27 mpg/hwy

CARFAX Report Available – Yes

Video Walk Around Available – Yes (ask me to send you a link)

Clear Title? – Yes

Pictures – More available, just ask.

Price – $16,950.00

Contact – Call Phyllis at 510-648-0000 or click on the email link.

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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com. You can also download his FREE report, The 8 Biggest Mistakes Used Car Buyers Make & How to Avoid Them!

HistoryReports

Anyone who buys a used car and doesn’t check its vehicle history report is asking for trouble.

As an Internet Sales Manager I used both major vehicle history reports: CARFAX and AutoCheck®. Both serve a purpose, but in this economic downturn it’s important to save money. That being the case, the best buy is the one that is better known in the auto industry, yet less known by private sellers: AutoCheck®. This is one situation where my position as an industry insider comes in handy.

On Dec 28, 2009 I found these prices online following a price increase by both companies:

• Single Reports
  • AutoCheck® $24.99
  • CARFAX $34.99

• Multiple Reports
  • AutoCheck® $39.99 – Unlimited
  • CARFAX $44.99 – Maximum of 5 reports

If you choose the single report package you can save 40% by buying your vehicle history report from AutoCheck®. (34.99 – 24.99 = 10 divided by 24.99 x 100 = 40%)

Other Benefits of AutoCheck

Speed is Crucial

As an Internet Sales Manager for a major dealership, we once took in a trade that came up with a clean report when we initially ran the vehicle history. However, a month later when I went to sell the car we ran a new vehicle history report that indicated an accident.

The dealership I worked for had a policy of NOT selling used vehicles that had been in an accident – period!

The result was that I lost a sale, the dealership lost a customer, and the customer was put through a process he was justifiably disappointed over, all because the speed at which the accident appeared on this vehicle history was not as fast as it could have been. A quicker turn around could have saved us all a lot of grief.

This is an example of buyer beware. No vehicle history report will catch every incident and this is another reason to have your own mechanic check out used cars prior to purchase. Want more examples? Below are two investigative journalism reports on the negative aspects of some vehicle history reports:

Shorter U.S. TV station report

Longer Canadian TV report

Speed is crucial, and it’s another reason for purchasing AutoCheck® because they deliver accident information faster. And you get twice as many number of accidents in your report when compared to CARFAX.

And just like CARFAX you get:

• available information on accidents, odometer rollback, lemon vehicles.
• a list of the number of previous owners.
• a buy back program is available.

But unlike CARFAX, AutoCheck® has another benefit, which is something I haven’t used so I can’t recommend it one way or the other:

• An AutoCheck® Score, which allows you to tell how a vehicle measures up against others of the same make and model at a glance.

Remember that no vehicle history report is perfect and getting any pre-owned vehicle inspected by your mechanic is always a good idea. Of the two, the better buy is AutoCheck®

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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.

The links I provide are often affiliate links that I receive a commission from if you click thru and purchase a product. I appreciate the support as this allows me the resources and time to develop my website (www.BayAreaCarGuy.com) and funds the development of my next book. See my video explanation at http://bayareacarguy.com/sell-car-online-thanks-for-the-click/.

The 8 Biggest Mistakes Used Car Buyers Make

Buying a used car can be one of the most stressful life experiences you’ll have.  I should know. When I was an Manager for a a major car dealer in the San Francisco Bay Area, I saw my customers make the same mistakes over and over.

I have just released my new 18-page, easy-to-read eBook:

The 8 Biggest Mistakes Used Car Buyers
and How to Avoid Them!

To get your FREE copy simply add your information below and click Submit.

Pass It On

I’ve written the copyright for The 8  Biggest Mistakes in a way that allows you to freely distribute it among family, friends, and others who can use some help reducing their stress level when buying a used car.

You can pretty much do whatever you want with this report as long as you don’t change the text or ask for anything in return. But remember, the idea is to help as many others as possible, so pass it on!

Sign Up & Download

Enter your info below for The 8 Biggest Mistakes FREE DOWNLOAD!

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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.

Cadillac Conversations Book Review

My thanks to Bruce Nunnally for his extensive review of my new book, HELP! I Gotta Sell My Car NOW! You can read his full review here.

Bruce has an interesting website – CaddyInfo.com – it’s everything Cadillac. I love the way Bruce himself describes it:

All Cadillac models, all years, all the time.

And he’s right: CaddyInfo has a huge amount of information on Cadillacs. Bruce even sells his own eBook entitled, Cadillac CTS Press Book for the avid enthusiast.

I must say that it’s nice to see automotive experts from their own areas of expertise give a public nod of approval for HELP! NOW! in the manner that Bruce Nunnally did in his recent book review.

Thanks again Bruce!

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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.

HELP! NOW! Free Sample Chapters

If you don’t want to buy my new book just yet (HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online!), download the sample chapters:

HELP! NOW! Sample Chapters (…click ADD TO CART… it really is FREE!)

HELP! I Gotta Sell My Car NOW!

HELP! NOW! is the only step-by-step guide for selling your car online that is available today. It not only walk you through HOW to create an effective online ad, but you learn industry BEST PRACTICES so you:

• price your car so you don’t leave money on the table
• what sites to choose, and how to market your car for FREE
• which photos do you take and how do you shoot them
• handling inquiries and test drives
• how to negotiate like a pro
• handling the paperwork and counting the money

Get FREE Sample Chapters by clicking above (it really is FREE).

Learn more about HELP! NOW!, and even buy it, by clicking  here.

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L. James Johnson’s new book, HELP! I Gotta Sell My Car NOW! New Rules for Selling Your Vehicle Online! is available for download at BayAreaCarGuy.com.