Certified Pre-owned versus New
When it comes to purchasing a vehicle, many people prefer to buy used as opposed to new. The greatest depreciation occurs in a car’s first two years. By buying a used car, you’re allowing the original owner to incur the largest depreciation hit.
Before a vehicle can receive the “Certified” distinction, the manufacturer conducts what is known as a “100 point” inspection to determine if the vehicle is worthy of the title. Because of this, many certified pre-owned vehicles feature the same or similar dealership and manufacturer benefits that new autos receive — in addition to a lower annual expense. Let’s take a look at the overall benefits and total cost involved in purchasing a “Certified Pre-Owned” vehicle as opposed to a new one.
|
Vehicle |
Price |
Warranty |
Loan APR |
Monthly Payment |
Annual Loan Expense |
Annual Savings |
|
New 2008 Honda Civic EX |
$19,510 |
Bumper to Bumper 3/36,000 & Powertrain 5/60,000 |
4.99% |
$368.09 |
$4,417.08 |
|
|
Certified Pre-Owned: 2006 Honda Civic EX |
$16,991 |
Bumper to Bumper 4/48,000 & Powertrain 7/100,000 |
4.99% |
$320.56 |
$3,846.72 |
$570.36 |
|
Source: http://automobiles.honda.com/ |
||||||