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Sensible Car Buying in a Down Economy

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.




Loan APR

Monthly Payment

Annual Loan Expense

Annual Savings

New 2008 Honda Civic EX


Bumper to Bumper 3/36,000 & Powertrain 5/60,000





Certified Pre-Owned: 2006 Honda Civic EX


Bumper to Bumper 4/48,000 & Powertrain 7/100,000