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Certified Pre-owneds: dealer vs. manufacturer? good deal vs. bad?

Discussion in 'Dealers & Pricing' started by BluetoothEdsel, Jan 24, 2014.

  1. BluetoothEdsel

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    (Sorry for partial cross-posting of similar question in Dealers & Pricing forum - thought some here might know):

    After lengthy consideration, think I'd finally like to buy a Prius! Am interested in a 2012-ish CPO, but have read several people mention that some Certified Pre-owned Prii are really only certified by the dealer, not Toyota. Definitely want one that's manufacturer certified so I can get repairs at any Toyota dealer. But how exactly do you tell the difference? If a car is listed on Certified Used Toyota Cars, Trucks, SUVs & Hybrids does that mean it's definitely manufacturer certified? I've come across a few cases where a dealer was showing a car that was on toyotacertified.com but then denied the car had the 12-month comprehensive warranty mentioned on Used Toyota Warranty | Extended Warranty for Used Toyotas So I'm not sure what's up with that.

    Also am interested in any thoughts regarding the value of CPO's vs. perhaps one of the last 2013 new closeouts, or how concerned should I be about whether a 2012 has 20,000 miles vs. 40,000, etc. I'm only racking up about 9000 miles/year for now so the miles themselves don't bother me as much as potential wear and tear issues, especially on former lease vehicles.

    Thanks for any input!

    Hmm, found this info: Program Comparison So the CPO warranty has a $50/deductible per visit. I'm guessing the new car warranty doesn't have a deductible? Not that I'd expect the deductibles to add up to big bucks, but it doesn't exactly inspire confidence in the reliability of the CPO's...
     
  2. JimN

    JimN Let the games begin!

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    The new car warranty does not have a deductible. The used car also carries the balance of the new car warranty. In my opinion, CPO is just a device to get someone to pay more for a used car.

    20000 miles per year is high mileage but it doesn't make the car a bad car. We all drive used cars and I have 86000+ miles on my 4 year old. There's nothing wrong with her & she's not for sale.

    It all comes down to to the cars' packages and what you want, don't want, and can live with. Gas prices are low so you should be able to get both cars at a discount. Read through Car Buying Guide for New and Used Vehicles | CarBuyingTips.com and happy hunting.
     
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  3. frodoz737

    frodoz737 Top Wrench

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    "Gas prices are low"....what?

    Get a 2013 New close out. Respects, but I never "recommend" anyone buy used.
     
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  4. BluetoothEdsel

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    Thanks! Any thoughts on a very low mileage 2013 CPO? First purchased last fall, owned about 2 months, driven less than 2000 miles. Possible repo. Would therefore have almost the entire new car warranty, plus an extra couple years of powertrain CPO warranty. (7yrs./100,000 miles from date of purchase.)
    Selling for almost as much as a new 2013 closeout would; salesman so far insists he can't go lower. On the other hand, would save me a probable day-long trip out of town to pick up a 2013 closeout in the trim level I want (slim pickings here now.)

    Too sketchy? Or OK given the new-car-plus-some warranty? Could someone screw up a Prius in that short a time beyond ways that would be obvious?
     
  5. frodoz737

    frodoz737 Top Wrench

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    Well if it is a repo as you suspect, they "screwed up" making payments. There are quality used cars available and many of us have purchased them in the past, because they were quality. There are also financial reasons for buying used such as income and credit, but if one can afford a low miles CPO they can and probably should buy new and avoid the trappings of unknown user habits and maintenance which can be easily disguised prior to sale. I will not say never buy used, I just will not recommend it.
     
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  6. JimN

    JimN Let the games begin!

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    Gasbuddy.com reports the 15 lowest prices for regular gas in NJ range from $2.99 to $3.05 and the NJ average price is down 10 cents from last year.

    When gas prices are "high" there are no Prius leftovers.

    What's a day's worth of time & the extra warranty worth to you? How much less & what are 2000 miles worth to you? The IRS says a business mile is worth $0.56 (IR-2013-95, Dec. 6, 2013).

    You'll know you are getting the lowest price on the car when you tell the salesman you are buying the other & he says "goodbye".

    Generally, I agree with frodoz737. My Grandfather never bought a new car. My friend Joe never bought a new car. They were happy with their choices. There's a chance that new car sitting on the lot is a lemon. I would like to know why someone sold their "new" car? Did they die? Were they unhappy with it and traded up? Look at some of the regular posters here who traded a "new" Prius for a PiP or a Leaf or a Volt. Nothing wrong with the car, they just weren't happy with it.

    Just my opinion: You have to make the used car worth my while to consider it. What's 2000 miles when the car has 100,000 or 150,000 or 200,000? The discount has to be at least $1120. How much mileage are you going to put on two cars to pick up the new one?

    When I buy a car I expect to receive ALL the parts and that means two fobs. If ANY part is missing, no deal.

    The warranty extension on the powertrain doesn't impress me. You did verify that Toyota is writing the warranty, right? The used car was originally purchased & titled in CA, right? If not, no deal. I'm not giving up the CARB warranty.

    Does the used car have exactly what you want? Is something missing? Is something extra? Are you comparing a used Three-Solar with a new Two? If you are going up a level or a package with the used car, then I'd buy the used.

    Best wishes on whatever you decide.
     
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  7. BluetoothEdsel

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    Thanks all! JimN, I know South Jersey and its enviable gas prices well. Every time I visit I wish I could bring a few tankfuls back to SD along with my Tastykakes, but pretty sure TSA would frown on it...

    Yeah all the CPO's are originally from Cali - good point about CARB warranty. All candidates are Prius III package: the 2012 CPO (42K miles) has the solar roof; nothing else I'm comparing does. Latest news today is that dealers locally are starting to offer me some deals on 2014's - looks like some combination of Toyota rebate plus end-of-month sales push. So that may end up making more sense than trying to chase down the rapidly disappearing 2013's from other cities.

    Looks like after TTL there's probably about $3000 or less difference between 2012 with miles and solar vs. 2014. Have bought mainly used Toyotas in the past as they seemed a good value for reliable cars. Got pre-purchase inspections by my own mechanic each time and just dealt with any problems as they came - which weren't generally costly or breakdown-inducing, at least until the cars got old. I'm buying Prius largely for its reliability, and started out with the attitude that I'd save money buying used again, figuring, "What could go wrong on a Prius? It's barely got any mechanical wear parts! CPO warranty covers powertrain for years, and the HV battery warranty runs til Armegeddon!" But now starting to realize that what *could* break could be expensive to fix in a Prius, and could be the kind of stuff that would fall under comprehensive warranty, rather than powertrain. Especially since comprehensive warranty on the CPO's is shorter than on the new cars, that does start to shift the equation toward new cars, or at least used cars where you have a good idea how they've been treated. Being a cheapskate who probably won't rack up a ton of miles I hate to part with an extra $3000 just for "new car smell," but perhaps it's worthwhile in this case.