Quote History Quoted:
.It's cost prohibitive to certify a piece of crap. Reconditioning adds up fast. When I was the GM of a Lincoln-Mercury dealer a decade or so ago, I only certified 2-3 year old used cars with 30,000 or less miles, simply because it cost me less to do it that way. As a manager, I hated having to do CPO. I made less money per unit overall, and had to answer to the factory. CPO is to a degree a benefit for the consumer, and a loss to the dealer.
When the finance gal offers you the extension to the extended CPO warranty, ONLY take it if it is factory backed - do NOT go 3rd party.
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A lot of truth here.
We offer GMPP on CPO units however the certified warranty is 3 months/5000km which ever comes first.
That CPO does qualify the vehicle for extended warranty up to an additional 60,000 miles (typical) with a $100 deductible.
We rarely certify a used vehicle that is already out of the comprehensive warranty because of age and mileage, when we do we are at the mercy of the shop.
The shop makes drug money off the UCD when we give the go-ahead on certifying, they call EVERYTHING to be fixed or replaced and guess who has to pay for it ?
The customer that is purchasing that CPO vehicle, that's who.
However, a vehicle that is still under warranty gets fixed anyway and costs us around $300 for the inspection, the manufacturer foots the bill if repairs are needed..
Sold a used Jeep Patriot a few months ago that had quite low miles on it, we certified it.
Customer called me this morning. Transmission puked its guts all over the highway.
He was very happy to hear that the extended warranty that he got a deal on was going to cover the new tranny less his $100 deductible.
Even though it was a Jeep, GMPP is the only manufacturer that covers other brands with their CPO extended warranty.
Kind of cool actually.