Buying a used car has become a complex ordeal. Franchised and independent dealers, rental companies, leasing companies, car superstores, and online sellers compete to bring in customers by promising the best prices, better warranties, and certified pre-owned (CPO) vehicles. In most cases, CPO vehicles have been subject to a rigorous, multi-point inspection and can be expected to operate almost as good as new. Certified pre-owned can mean different things to different dealers, but a manufacturer CPO usually has higher standards than most independent used car lots.
New changes in the Federal Trade Commissions (FTC) used car rules could mean that a CPO vehicle may not always be safe. Last months changes will make it easier to label vehicles as “Certified Pre-Owned,” even if it is under recall and has not been fixed. These changes came as a result of the Takata airbag defect and its unprecedented 60 million airbags recalled. The lack of replacement parts has dealers first replacing airbags most likely to cause harm, while others may have to wait years before they can get repairs done. Given the situation, the Federal Trade Commission said dealers may advertise used vehicles as certified even if their airbags were under recall, as long as the problem has been disclosed to the buyer. Continue reading