Today's News by Jack Nerad for Driving Today

Oldies Really Are Goodies

Tuesday, August 10, 2010

Many of us will own several cars in our lifetime, and you may have noticed yours is spending more time on the road and less time in the shop.

That’s just one representation proving automakers’ claims that repairs covered under new car warranties have decreased significantly in the last couple of years. In some cases, repairs have declined as much as 40 percent. There's no question that the quality of all vehicles in the marketplace is significantly better than it was 20 to 25 years ago. Both imported and domestic vehicles are being made a lot better. In turn, some manufacturers are making longer-term warranties available on used vehicles.

Nearly all carmakers today offer extended warranties for their "certified pre-owned" cars and trucks. To "certify" a used vehicle in a manufacturer-sponsored program, a dealer must perform a comprehensive multi-point inspection laid out by the manufacturer. In addition, the vehicle must meet age and mileage requirements. If the vehicle meets all the required criteria, the dealer will then "certify" the vehicle, and its warranty will be extended.

This creates a third option for consumers between the new and used cars traditionally found on retail lots. With better warranties and incentives like roadside assistance coverage, the right used car can be a high-value substitute for a new car.

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