Now that leasing seems to be going through a slow phase-out, shoppers looking for a good deal on a newish vehicle may take a harder gander at certified pre-owned models. GM realizes this and has responded by ambushing customers increasing the warranty coverage on the CPO models for all of its brands, minus Cadillac which has its own program. The new warranty stands at 12-months or 12,000 miles and begins when the CPO purchase is made -- an increase of up to nine-months over the previous guarantee. Being a "bumper-to-bumper" warranty, everything excluding wear items like tires and brakes are covered for manufacturing defects. The powertrain warranty remains: five years or 100,000 miles from when it was sold as new. GM hopes that this increased coverage has a corresponding effect on its CPO sales. What's more, the automaker also believes that this action will have a desirable effect on its vehicle's residual values.
Some folks out there simply refuse to buy a new automobile off the showroom floor. They cannot bring themselves to fork over the funds for an item that depreciates in value so quickly after pulling away from the dealer's lot. The world of certified used cars arose for these frugal minded individuals. Certified used cars offer sufficient warranty coverage, enough miles on the odometers to assure that they are not lemons and little to none of the instant investment nose dive. Now Lamborghini is joining the ranks of manufacturers offering pre-owned vehicles through its dealership network so wealthy super tight wads can feel a little bit better about splurging for a Lambo. This will also make it easier for those who have to be seen in the latest and greatest to trade up from old to new models.
The program begins in July and extends to all Gallardo and Murcielago models through a network of 31 authorized dealers. To be certified, however, the vehicle must meet a list of criteria. The car must have seen less than 22,000 miles with all maintenance fully documented. It also must pass a 150-point inspection performed by the dealer. Any non-OEM equipment (wings, stereos, Gumball 3000 decals) will not be accepted as they do not meet the required standards.
Way back in February, General Motors announced it would be listing all of it Certified Pre-Owned vehicles on eBay Motors, and it took until now to actually make that happen. To go along with GM, Chrysler and Lexus have also joined up, with eBay Motors making a special section of its website specifically for CPO vehicles. The new site, which can be found here, went live yesterday and is sponsored exclusively by Lexus. It's also provided at no cost to any dealer looking for another outlet to advertise its inventory.
A quick check of the new hub shows that both eBay's classic auction-style listings and regular classified ads are listed together. The site's search functionality allows users to find vehicles located near their zip code, meaning it should prove awfully easy to find that brand-spanking-used Chrysler Sebring you've been foaming at the mouth for.
Lamborghini is in the process of developing its own certified pre-owned program that should launch by the end of the year. According to Stephan Winkelmann, CEO of Lamborghini, the program will be rolled out worldwide, beginning with dealers in the U.S. and Europe. Details about how a used Lambo will be inspected or certified haven't been released yet, but sales will only be allowed through authorized Lamborghini dealers. Ferrari has been dealing in certified pre-owned vehicles since 2003, and just announced a program that would include a 190-point certification process of seven models going all the way back to 1998.
Ford is confident enough in the improved quality of its vehicles that the automaker is increasing the warranty on its Certified Pre-Owned (CPO) Vehicles. Under the old warranty terms, the powertrain was covered for six years or 75,000 miles; starting last week the powertrain coverage was upped to six years or 100,000 miles. Ford has also seen fit to add a three-month or 3,000-mile comprehensive warranty along with 24-hour roadside assistance to their CPO cars. In reality, this new extended warranty coverage brings Ford level with other manufacturer's powertrain CPO warranties, placing them smack-dab between rival GM's five year or 100,000 mile warranty and Honda and Toyota's seven year or 100,000 mile coverage. Chrysler's CPO coverage extends for eight years but only up to 80,000 miles. All of these brands also match Ford's new comprehensive coverage. As Ford's higher-level brand, Lincolns will get a six-year/100,000 comprehensive limited warranty.
