The New Rules Of Car Buying Rule 4

Written by Terry J. Schultz    Monday, 09 February 2009

BUT YOU CAN STILL PROFIT FROM THEIR GLORY DAYS Leasing had none of these troubles a few years back. Now the contracts on the thousands of cars, trucks and SUVs leased in 2006 and 2007 are up, and two- and three-year-old models are returning to packed dealer lots, giving you yet another chance to score a deal. Because cars lose most of their value in the first or second year, these gently used vehicles are among the best values you can find. For the price of a new Toyota Camry, for example, you can drive a 2007 Volvo S40. Typically, the dealer will inspect a formerly leased car, tune it up, slap on an extra warranty and market it as certified pre-owned (CPO). Every major brand now has such a program, and CPO sales are up 30% since 2002, according to Autodata. "It lets you know that you don't have to be concerned about buying a lemon," says Lenny Sims of NADAguides.com, a car information website. That peace of mind isn't free: On average you'll pay about $1,000 more for a CPO than for a plain-vanilla used car, and $2,500 more for high-end models, according to IntelliChoice.com's Bell. Before you pay this premium, make sure it's a manufacturer CPO program, not one run by the dealer. And check how much longer the warranty extends beyond the original factory one. You want another few years, not a few months. Finally, push to lower the price enough to cover this added cost. In today's beaten-up car market, you have the power to negotiate on everything.

Last Updated ( Monday, 09 February 2009 )