Is certified used car worth extra cost? #car #finance #deals


#used car worth
#

This is a definitely-maybe sort of answer, but it really depends. When you pay extra to buy a certified preowned vehicle, what that extra upfront cash really buys is peace of mind.

Preowned is simply a politically correct way of saying used. Consumers may feel a little better about a used vehicle because it’s not really used, but preowned Semantics, however, provides little assurance that a preowned vehicle is going to perform any better than a used one. The words “certified preowned” attempt to provide that assurance.

There are basically two types of certification: factory-certified and dealer-certified. Usually dealer certification doesn’t add much, if any, additional cost to the sale price. The dealer inspects a preset number of areas of the vehicle, fixing any problems found, and then usually provides a limited warranty on that vehicle for a specified period (typically no more than 90 days), during which time that same dealer will make repairs under the terms of the limited warranty. Without the factory overseeing the diligence and execution of the inspection or repairs, it is still up to the consumer to make sure the vehicle is sound. This will usually entail a trip to a trusted mechanic in addition to the dealer’s certification. All the consumer really receives with a typical dealer certification is a short-term limited warranty. Longer protection will require paying for an aftermarket extended warranty — another can of worms entirely.


Is certified used car worth extra cost? #used #car #sale


#used car worth
#

This is a definitely-maybe sort of answer, but it really depends. When you pay extra to buy a certified preowned vehicle, what that extra upfront cash really buys is peace of mind.

Preowned is simply a politically correct way of saying used. Consumers may feel a little better about a used vehicle because it’s not really used, but preowned Semantics, however, provides little assurance that a preowned vehicle is going to perform any better than a used one. The words “certified preowned” attempt to provide that assurance.

There are basically two types of certification: factory-certified and dealer-certified. Usually dealer certification doesn’t add much, if any, additional cost to the sale price. The dealer inspects a preset number of areas of the vehicle, fixing any problems found, and then usually provides a limited warranty on that vehicle for a specified period (typically no more than 90 days), during which time that same dealer will make repairs under the terms of the limited warranty. Without the factory overseeing the diligence and execution of the inspection or repairs, it is still up to the consumer to make sure the vehicle is sound. This will usually entail a trip to a trusted mechanic in addition to the dealer’s certification. All the consumer really receives with a typical dealer certification is a short-term limited warranty. Longer protection will require paying for an aftermarket extended warranty — another can of worms entirely.


Are certified pre-owned cars worth the extra money? (Page 1 of 3) #sell #car #online


#used car worth
#

Are certified pre-owned cars worth the extra money?

At least that’s what the auto industry would like American car customers to think. But what does certified pre-owned really mean? And what are the advantages and disadvantages of buying one?

Certified pre-owned, or CPO, is a term coined by the automotive industry to describe late-model, low-mileage used cars that have passed some sort of inspection and are backed by a factory warranty or service contract. Certified pre-owned cars are generally in better shape than the average used car and have a history of regular maintenance and accident-free operation that can be verified independently through a vehicle-tracking service such as Carfax.

Where certified pre-owned cars come from

Most of the autos with the certified pre-owned label are cars that were leased new instead of sold, and thus have been cared for by customers trying to avoid extra charges for wear and tear at the conclusion of their leases. Certified pre-owned programs started as a way for automakers to sell low-mileage off-lease cars during the leasing boom of the 1990s. Since then, sales of certified pre-owned autos have sky-rocketed, thanks to the perceived combination of new-car dependability and used-car price.

But the most important definition of certified pre-owned for consumers is the one written by the manufacturers themselves. Most certified pre-owned programs offer some combination of a warranty, an inspection and the option to return the car if it doesn’t live up to expectations. However, the specifics of what consumers get for the extra cash they spend on a certified pre-owned car varies a great deal. Lexus, an early pioneer of CPO programs, adds a three-year/100,000-total-vehicle-mile limited warranty to its CPO cars. Chrysler, while offering an inspection and a return policy, offers only a three-month/3,000 mile limited warranty and an 80,000-total-vehicle-mile powertrain-only warranty on its certified pre-owned cars.

Extension of the factory warranty is one of the key elements of a CPO program says Paul Taylor, chief economist at the National Automobile Dealers Association. Customers should make sure they get an extension of the factory warranty, which entitles them to the same service that new-car owners enjoy.

So why do manufacturers and dealers go to the trouble of testing and warranting CPO cars? The answer is simple: money.

Buying certified pre-owned can tack on anywhere from $500 to a couple of thousand dollars to the price of a used car, says Cliff Weathers, deputy automotive editor at Consumer Reports.

Traditionally, manufacturers made little to no money off the lucrative trade in used cars. This changed with the advent of CPOs. Manufacturers, along with dealers, now get a cut from the sale of each used car with the certified pre-owned tag, and this extra profit comes out of the pockets of CPO buyers.

Are certified pre-owned cars worth it?

Is the certified pre-owned label worth this extra money? It depends on what you’re looking for. If your first priority is price, avoid certified pre-owned vehicles altogether.

CPO cars are not for bargain shoppers, says Phil Reed, consumer advice editor for Edmunds.com and author of Edmunds.com’s Strategies for Smart Car Buyers.


Extra Payment Loan Calculator #advace #auto


#auto loan calc
#

Loan Calculator w/Extra Payments

  1. If you want to calculate how much a mortgage payment will be on a $200,000 mortgage at 4.25% interest for 360 months, you would enter:
  • 200,000 for Principal Value
  • 360 for Months
  • 4.25 for Interest Rate (Compounded Monthly)
  • Press the Payment button, and you’ll see that your payment would be $983.88. You will pay about $154,196.69 in interest over the life of this loan. Make sure that the month and year of your first payment is reflected in the first payment due field (in this case -June 2015).
  • Now, let’s say you would like to make extra monthly principal payments of $116.12 (to round the payment to $1100) for the next 10 years starting in June of 2015. You’ll enter:

    • Monthly for how often extra principal payments will be made.
  • 116.12 for the extra payment amount
  • Select June and 2015 as the first extra payment date
  • Select June and 2025 as the date to which the payment will be made. (May will be the last extra payment.)
  • Press the View Amortization Schedule button, and you’ll see that your mortgage will be paid in 322 months (instead of 360 months) and you’ll pay about $130,279.28 in interest (instead of $154,196.69).
  • In this next example, let’s say you took out a 30 year (360 months), $200,000 mortgage in May of 1996 (first payment due June 1996) at 7.5% interest. Your required payments are $1398.43, yet you have been making monthly payments of $1500 (which you intend to continue) with the excess going to principal. Recently, you have received an inheritance and have decided to apply an additional $25,000 to your mortgage principal in Jan 2014. When will the mortgage be paid in full?
    • 200,000 for the Principal Value
  • Leave the Months field blank
  • 7.5 for Interest Rate (Compounded Monthly)
  • 1500 for Payment
  • Select May 1996 for when the first payment was due.
  • Press the Months button, and you’ll see that you’ll pay $1500 for 287.58 months before your mortgage will be paid in full. You’ll pay about $231,365.95 in interest over the life of this loan.
  • Next.


    Extra Payment Calculator #auto #bluebook


    #auto payment calculator
    #

    Accelerated Extra Payment Calculator

    Extra Principal Payment Help

    The accelerated payment calculator will calculate the effect of making extra principal payments. A very small extra principal payment made along with a regular payment can save the borrower a large amount of interest over the life of a loan, particularly, if those payments are started when the loan is relatively new.

    For example, assume that you have taken out a loan for $130,000, for 360 monthly periods with an annual interest rate of 7 3/4%. If, with the 49th payment, you start to pay an extra $225, you will save $75,901.42 in interest payments and the loan will be paid off in 234 payments instead of the original 360 payments.

    It is very easy to quickly calculate many different scenarios. Note that the higher the interest rate, the greater the savings for any extra payment amount. Also, for a normal amortizing loan, the interest savings will be greater the sooner the extra payments start. That is, you will save a lot more in interest if you pay an extra $50 a month for the last 20 years than if you pay an extra $100 a month for the last 10 years.

    As with many of our other calculators, this calculator will also solve for an unknown input. For example, if you want the calculator to calculate the regular monthly payment, enter ‘0’ (zero) for the Periodic Payment and a non-zero values for Amount of Loan , Total Months , and Annual Interest Rate .

    If you do not enter a ‘0’ value, the calculator will use your inputs. This allows you to use any payment amount that you need.


    Early Loan Payoff Calculator to Calculate Extra Payment Savings #certified #used #cars


    #auto loan payoff calculator
    #

    Introduction

    What the calculator does.

    This early loan payoff calculator will help you to quickly calculate the time and interest savings (the “pay off”) you will reap by adding extra payments to your existing monthly payment.

    The calculator also includes an optional amortization schedule based on the new monthly payment amount, which also has a printer friendly report that you can print out and use to track your loan balance.

    If you want some incentive for adding payoff amounts to your existing loan payments, picture yourself having the choice between handing an amount of cash over to an already-wealthy creditor, versus providing a genuine need for a loved one.

    Your family needs your money a lot more than your creditors do, so I urge to stop helping creditors to become richer at the expense of your family’s financial well-being. Take a stand for your family — instead of for your creditors — by working hard to pay off your loans ahead of schedule. That way you can use the interest savings for more meaningful purposes than just helping the rich get richer.

    With that I invite you to use the Early Loan Payoff Calculator to see just how much money you can divert from a creditor back into your own pocket.


    Are certified pre-owned cars worth the extra money? (Page 1 of 3) #cars #for #sale #by #owner


    #used car worth
    #

    Are certified pre-owned cars worth the extra money?

    At least that’s what the auto industry would like American car customers to think. But what does certified pre-owned really mean? And what are the advantages and disadvantages of buying one?

    Certified pre-owned, or CPO, is a term coined by the automotive industry to describe late-model, low-mileage used cars that have passed some sort of inspection and are backed by a factory warranty or service contract. Certified pre-owned cars are generally in better shape than the average used car and have a history of regular maintenance and accident-free operation that can be verified independently through a vehicle-tracking service such as Carfax.

    Where certified pre-owned cars come from

    Most of the autos with the certified pre-owned label are cars that were leased new instead of sold, and thus have been cared for by customers trying to avoid extra charges for wear and tear at the conclusion of their leases. Certified pre-owned programs started as a way for automakers to sell low-mileage off-lease cars during the leasing boom of the 1990s. Since then, sales of certified pre-owned autos have sky-rocketed, thanks to the perceived combination of new-car dependability and used-car price.

    But the most important definition of certified pre-owned for consumers is the one written by the manufacturers themselves. Most certified pre-owned programs offer some combination of a warranty, an inspection and the option to return the car if it doesn’t live up to expectations. However, the specifics of what consumers get for the extra cash they spend on a certified pre-owned car varies a great deal. Lexus, an early pioneer of CPO programs, adds a three-year/100,000-total-vehicle-mile limited warranty to its CPO cars. Chrysler, while offering an inspection and a return policy, offers only a three-month/3,000 mile limited warranty and an 80,000-total-vehicle-mile powertrain-only warranty on its certified pre-owned cars.

    Extension of the factory warranty is one of the key elements of a CPO program says Paul Taylor, chief economist at the National Automobile Dealers Association. Customers should make sure they get an extension of the factory warranty, which entitles them to the same service that new-car owners enjoy.

    So why do manufacturers and dealers go to the trouble of testing and warranting CPO cars? The answer is simple: money.

    Buying certified pre-owned can tack on anywhere from $500 to a couple of thousand dollars to the price of a used car, says Cliff Weathers, deputy automotive editor at Consumer Reports.

    Traditionally, manufacturers made little to no money off the lucrative trade in used cars. This changed with the advent of CPOs. Manufacturers, along with dealers, now get a cut from the sale of each used car with the certified pre-owned tag, and this extra profit comes out of the pockets of CPO buyers.

    Are certified pre-owned cars worth it?

    Is the certified pre-owned label worth this extra money? It depends on what you’re looking for. If your first priority is price, avoid certified pre-owned vehicles altogether.

    CPO cars are not for bargain shoppers, says Phil Reed, consumer advice editor for Edmunds.com and author of Edmunds.com’s Strategies for Smart Car Buyers.