by "SteveLehto" (stevelehto)
Published 02/02/2017 at 09:00
by "SteveLehto" (stevelehto)
Published 02/02/2017 at 09:00
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STARS: 6
Many people think that a CPO car is like buying a new car at a discount. I always say it is more like buying a used car at a premium. AND, things just got a little worse, based on a new ruling from the FTC.
Consumers complained to the Federal Trade Commission about some dealers selling Certified Pre-Owned cars which needed repairs. It makes sense: How could the car be certified to have no major problems and to have been thoroughly checked out when it has a major problem that has not been fixed?
What kind of problems? Try problems subject to recall. That is, CPO cars which had open recalls were still being sold as “Certified.” Which goes a long way toward making my point about how useful that CPO designation is.
The FTC decided to allow the practice to continue, so long as the seller informs the buyer that the car might be subject to recall and then gives the consumer information on how to find out. Does this seem convoluted to you? It does to me. And I discuss it in this week’s podcast. Here is the audio:
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And the video:
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Pic at top: Wolfy, the Sheltie who is really a cat trapped in a dog’s body.
Follow me on Twitter: @stevelehto
Hear my podcast on iTunes: Lehto’s Law
Steve Lehto has been practicing law for 25 years, almost exclusively in consumer protection and Michigan lemon law. He wrote The Lemon Law Bible and Preston Tucker and His Battle to Build the Car of Tomorrow.
This website may supply general information about the law but it is for informational purposes only. This does not create an attorney-client relationship and is not meant to constitute legal advice, so the good news is we’re not billing you by the hour for reading this. The bad news is that you shouldn’t act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour.
"PotbellyJoe and 42 others" (potbellyjoe)
02/02/2017 at 09:12, STARS: 1
As with all used cars, the value is in the vehicle and the person selling it. If they are unscrupulous, caveat emptor.
The value I saw in CPO (I bought one and sold many) was the extra warranty and in more than a few cases, lowered interest rate programs for them.
Still, there are no Used Car Factories and every car has a history. You, or a mechanic you can trust, should check any car over before purchase.
Wisdom is knowing when to call in an expert.
"DipodomysDeserti" (dipodomysdeserti)
02/02/2017 at 09:13, STARS: 1
My wife’s current car is a CPO BMW. I figured I’d pay an extra grand or two to ensure against engine or transmission failure, knowing that the CPO didn’t cover everything. Turns out I bought the most reliable modern BMW ever made, and am now near 70k miles with no issues. Oh well.
My Jeep was a CPO, but I told the salesman I wasn’t paying an extra for that as I know Chrysler sucks at approving warranty repair. I figured I test the waters as my valve covers started weeping at 45k miles. They told me they only repair oil leaks under warranty if they’re dripping on the floor. I just threw and EGR code, and am not even going to bother bringing it in.
"JQJ213- Now With An Extra Cylinder!" (jqj213)
02/02/2017 at 09:39, STARS: 1
I feel a lot of it depends on the manufacturer.
I couldn’t believe all the Fords and Hyundai CPOs I looked at that were rental cars or in accidents (or both)
Then you look at the more premium manufacturers like Volvo that only certify one owner dealer maintained cars and back them with a better than new 7 year 100k warranty, roadside assistance, rental cars, and trip reimbursement, and even lower interest rates.
"MasterMario - Keeper of the V8s" (mastermario)
02/02/2017 at 09:44, STARS: 4
Definitely read that as “Ceritified Pre-owned Cats” at first because of the lead image.
"jimz" (jimz)
02/02/2017 at 09:48, STARS: 4
I envision these “175 point inspections” to be along the lines of:
Engine: __ Present __ Missing
Wheels: __1 __2 __3 __4
Stem Lube: (heh heh, “stem lube.” Even I didn’t fall for that one. Though winter is coming.)
"SteveLehto" (stevelehto)
02/02/2017 at 09:51, STARS: 2
I picture the committe of people (none of whom know cars very well) at the marketing dept of the MFR, sitting around a table making a list of things that will sound good.
“The dealers aren’t going to actually check any of these things so we can make the list as long and detailed as we like!”
"Urambo Tauro" (urambotauro)
02/02/2017 at 10:28, STARS: 1
It took me *this* long to realize that the decimal point in your show’s “season.episode” format was a legal reference. Nice one.