Compare Honda Certified Used Cars (CPOs)
I love selling certified Honda used cars!
Until recently I was the Internet Sales Manager for a major Honda dealership in the San Francisco/Bay area. I sold many, many certified Hondas to customers, friends, and friends of friends. These folks relied on my recommendations to find the right used vehicle for their needs, comfort, and budget. They trusted my judgment. And were so pleased with their experience that they sent their friends to me.
Selling a Certified Honda was a no brainer: there’s virtually no risk for my customers. Our mechanics not only put the vehicles through an extensive inspection – fixing any deficiencies they found – but Honda extended the warranty significantly.
NOW – I’m the Internet Sales Manager at Michael Stead’s Hilltop Ford. I continue to sell pre-owned Hondas and I continue to love the Honda Certified program. However, only an official Honda dealer can certified a Honda. “Too bad for me and my customers,” I thought.
BUT, to provide our customers with that “virtually no risk” experience when purchasing a Honda - Hilltop Ford has instituted a program that duplicates most of the Honda program AND provides better protection. We call this added level of protection our PremiumCare Extended Service package.
What does this mean to you? It means that we DOUBLE the warranty!
|
Original Warranty |
Honda Certified Program |
Our PremiumCare Package |
|
|
Clean History (no accidents!) |
– |
ü |
ü |
|
Six year old Maximum |
– |
ü |
depends on vehicle |
|
Less than 80,000 miles |
– |
ü |
depends on vehicle |
|
Inspection performed |
– |
150-point |
169-point |
|
Tire & brakes replaced if under 50% |
– |
ü |
ü |
|
Roadside Assistance |
– |
Cost is Extra |
ü |
|
Protection – Powertrain |
5-yrs / 60,000 |
7-yrs / 100,000 |
7-yrs / 100,000 |
|
Protection – Non-Powertrain |
3-yrs / 36,000 |
Adds 1-yr / 12,000 |
7-yrs / 100,000 |
What is the POWERTRAIN? The powertrain is the engine and transmission – considered to the two of the most expensive parts of the vehicle to fix if serious problems arise.
What is the NON-POWERTRAIN? Everything on your vehicle other than the engine and transmission. The non-powertrain warranty is often called the “bumper-to-bumper” warranty.
Why is the NON-POWERTRAIN WARRANTY so important? Each year more vehicles depend on computerized components. This can include maintenance monitoring programs, navigation systems, and electronic stability assist programs. These provide great convenience, safety, and access to technology. When problems arise, it can be expensive to diagnose the problem, or to even swap out computerized components. That’s why having the non-powertrain warranty extended to 7-years/100,000 miles is so important: to make sure that, for example, computer or electrical problems will most likely be covered.
PRICING: Have you noticed that virtually all manufacturer’s certified vehicles cost more than non-certified ones? This is because the dealer pays the manufacturer a fee when a vehicle is certified. The vehicle also must meet certain requirements, and go through an extensive inspection process with any deficiencies repaired. This added cost is going to be passed along to you, which is why certified vehicles are generally more expensive. It makes sense: A certified vehicle has added costs, but also has added value. These are passed along to the consumer with a higher selling price.
PURCHASING OPTIONS: At Hilltop Ford we offer two purchase options with most pre-owned Hondas. You can buy a Honda with only the remaining manufacturer’s warranty, if any. Or, buy your Honda with our PremiumCare Extended Service package. Let’s see how these two options compare when applied to a specific Honda Accord that we currently have in stock. (Details and pictures of the vehicle at http://hilltop-ford-lincoln-mercury.ebizautos.com/detail-2008-honda-accord_ex_sedan_4d-3786487.html.)
2008 Honda Accord EX-L sedan
-
Stock #16646
- VIN: JHMCP26868C015791
- Color: Black exterior, tan leather interior
- Miles: 18,646
PRICING OPTION #1: $22,995 + tax and license fees – only includes remaining manufacturer’s warranty (see chart above).
PRICING OPTION #2: $23,995 + tax and license fees - includes PremiumCare Extended Service package – extends protection to 7-years/100,000 miles.
COMPARE: Check our prices against other Honda Accords that have made it onto your short list. Compare these two prices to other vehicles you’ve found in your area – both Honda Certified and not.
HOW TO DECIDE: Consider differences in:
- Features (does it have leather? Navigation?)
- Condition
- Mileage
- Certified or not
- Warranty coverage
- Price
If you find the equivalent of our PremiumCareExtended Service package at other dealerships you’ll see that it usually costs significantly more – to the tune of thousands of dollars. In designing this package – including the cost of the car + the PremiumCare 7-year/100,000 miles protection – I hope to save you money while providing more value in ongoing protection compared to anyone else in the marketplace.
And in writing this and future articles, I am attempting to hand you tools so you can make the best decision for you and your family. OTHER TOOLS: Check out my FREE report, The 8 Biggest Mistakes That Used CarBuyers Make and How To Avoid Them! This FREE download is available on the right side of my home page at www.BayAreaCarGuy.com.
And for goodness sakes, try to make your car buying experience f-u-n!
L. James Johnson
james@BayAreaCarGuy.com – Personal website: http://www.bayareacarguy.com
Check out my article The 8 Biggest Mistakes That Used Car Buyers Make and How To Avoid Them! It’s a free download at www.BayAreaCarGuy.com
See my video on the top-right of my home page: How Can I Sell Used Cars To My Friends and They Won’t Hate Me Afterwards?
