Categories of Pre-Owned Vehicles Explained

Most brand dealerships offer both new and pre-owned vehicles. There are some that only have used vehicles for sale, but they typically not dedicated to one manufacturer. Glen’s Used Cars, for example, is not the save as a trusted Chevrolet car dealer offering pre-owned cars and trucks. The terms used and pre-owned were interchangeable a decade ago, but that is not the case today.

Pre-Owned

The term by itself is quite similar to a regular used car. It most likely was used as a trade-in toward the purchase of a newer car or truck. The dealership will make sure it is safe to operate, but no extensive work will be completed on that vehicle. These are usually sold “as is” and have no warranties.

Certified Pre-Owned

This category of vehicles will have a slightly higher price tag than pre-owned but is well worth the difference. Higher levels of reliability and performance can be expected from these cars and trucks. In order to become “Certified” the vehicle history has been researched to indicate any accidents or major damage. It has been inspected thoroughly by experienced mechanics.

Inspection points will vary from manufacturer to manufacturer but will have between one-hundred and one-hundred and fifty detailed inspection points. A report of inspection results will accompany the vehicle. These vehicles, like a Chevrolet Silverado truck, for example, will also be under an extended warranty.

Factory Pre-Owned

The factory pre-owned vehicle will be one that has under fifty-thousand miles on it and comes directly from the factory. These are formerly leased vehicles, rental cars, or company vehicles that are still under the original warranty. The term is reserved for vehicles in excellent condition.

A GM Executive uses a CHEVROLET SILVERADO 1500 for one or two years, for example, and then decides to experience a luxury sedan. It is important for executives to become familiar with the entire line of vehicles offered by that manufacturer. That Silverado will be available at a significant discount off the full retail price as a factory pre-owned truck.

The Increase is Pre-Owned Purchases

More and more buyers are leaving the dealership in certified and factory pre-owned vehicles. The reason is that new models are often much more expensive. The economy is still uncertain so people are cautious when making large purchases. This also explains the increase in people leasing vehicles.

Purchasing pre-owned can save buyers money, but be careful when selecting a vehicle. Certified pre-owned offers lower pricing and is still reliable and under warranty. A regular pre-owned vehicle may not last as long or perform as well.