"Certified" used vehicle sales are soaring

Automotive News reports that sales of certified used vehicles hit a new high in 2011. It's a growing part of the industry. Many automotive companies now offer certified programs, which typically include a detailed inspection, additional warranty and other benefits. In the U.S., certified sales increased 6% in 2011 at a time when new-vehicles sales were sluggish for many manufacturers. Several certified programs posted double-digit growth. Hyundai's certified sales more than doubled, likely prompted by recent improvements to its program. Hyundai now offers finance rates on used cars once reserved for new cars only. The savings can add up to thousands of dollars based on Hyundai's rates compared to typical bank or credit-union rates. At the same time, more people are turning to certified pre-owned based on the condition of these cars. As vehicle quality improves among most brands, used cars are lasting longer. At first, I was a little skeptical of most certified programs. Dealers incur costs to participate in the program and there didn't seem to be much benefit other than the "certified" label. But I have changed my mind. In Hyundai's case at least, there are key benefits to customers that are worth the cost of the program. This segment of the market will continue to expand.