Why would a dealer NOT certify a used car? | FerrariChat

Why would a dealer NOT certify a used car?

Discussion in 'General Automotive Discussion' started by energy88, Nov 13, 2016.

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  1. energy88

    energy88 Two Time F1 World Champ
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    Jan 21, 2012
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    West of Fredericksburg, VA
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    John
    Aside from an obvious CarFax accident history or a ratty appearance that can't be detailed away, why would a dealer elect to not certify a clean example of their brand of car? Might one factor be that a car has no record of the manufacturers maintenance schedule being followed? Or internal maintenance history data show some mysterious problem (electrical gremlins) on a particular car? I realize that certifying a car can add $1,000 to $3,000+ to the selling price of a car and that might limit the number of prospective buyers versus an uncertified example. Are local dealers open to certifying a car if asked by a buyer, or are there other factors in the decision such as corporate approval? Comments appreciated.
     
  2. arizonaitalian

    arizonaitalian F1 World Champ
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    Oct 29, 2010
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    Wyoming
    You will have to call a dealer and ask, that will get you a quick accurate answer vs. us speculating. (I could speculate that they believe it will take too much money to get it to standards based on what the inspection covers/requires).

    I do know the inspection is (even at retail value) $1000 or less ballpark.

    I also know they often "certify" cars (meaning they perform the inspection and it passes) but don't add the expensive warranty unless the buyer wants to pay for it (sometimes referred to as "certified eligible").
     
  3. El Wayne

    El Wayne F1 World Champ
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    Aug 1, 2002
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    L. Wayne Ausbrooks
    1. The various manufacturers each have different standards that cars must meet in order to qualify for their CPO programs. Items that will disqualify a car under all of these programs include:

    - Vehicle mileage is outside program parameters
    - Vehicle age is outside program parameters
    - Branded title
    - Frame damage

    Prior accidents do not automatically disqualify a vehicle under most CPO programs. As long as the vehicle suffered no frame damage, has been properly repaired, and the accident did not result in a branded title, prior accident history alone almost never means disqualification.

    2. Certification is not free to the dealer. In some cases, a dealer may simply decide that any value certification may add in the mind of the customer does not outweigh the additional cost. For example, the dealer may have an extremely low-mileage vehicle that is practically new, with almost all of the original manufacturer's new vehicle warranty remaining. Customers who view this vehicle as "practically new" may not see the value in paying a higher price for certification. And even if the manufacturer's new vehicle warranty is not as long as the CPO warranty, the dealer stands a good chance of picking up additional profit on the non-certified vehicle when his F&I manager sells the customer an extended service contract to make up the difference.

    3. The dealer may wish to advertise a vehicle at the lowest possible price. When prospective buyers are perusing advertisements for similar vehicles, the ability to list a vehicle at a price that is $2,000 lower than competitors may make the difference between getting phone calls and getting nothing.
     
  4. Scott85

    Scott85 Formula 3

    Dec 16, 2000
    1,240
    Dayton , OH
    Another reason , depending on MFR, if more then 3 panels have been worked on(accident, repainted, excluding bumpers), it will disqualify it. Another example, for Toyota, if there are too many dents in zone A (hood, roof, trunk, above the body line) that will disqualify it. For a certification, the car usually has to be close to perfect.
     
  5. WJGESQ

    WJGESQ Formula 3

    Dec 30, 2004
    1,477
    Probably a variety of reasons. Most of which are listed above.
     
  6. redhammer

    redhammer Karting
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    May 9, 2011
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    Exactly what he said.
    We bought a year old Mercedes SUV from a Mercedes dealer, I asked why is not certified they said because of low mileage would make sense just added expense. Soon after we bought it I found out quite a few panels were repainted, lesson learned.
     

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