Many people think that a CPO car is like buying a new car at a discount. I always say it is more like buying a used car at a premium. AND, things just got a little worse, based on a new ruling from the FTC.
Consumers complained to the Federal Trade Commission about some dealers selling Certified Pre-Owned cars which needed repairs. It makes sense: How could the car be certified to have no major problems and to have been thoroughly checked out when it has a major problem that has not been fixed?
What kind of problems? Try problems subject to recall. That is, CPO cars which had open recalls were still being sold as “Certified.” Which goes a long way toward making my point about how useful that CPO designation is.
The FTC decided to allow the practice to continue, so long as the seller informs the buyer that the car might be subject to recall and then gives the consumer information on how to find out. Does this seem convoluted to you? It does to me. And I discuss it in this week’s podcast. Here is the audio:
And the video:
Pic at top: Wolfy, the Sheltie who is really a cat trapped in a dog’s body.
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Steve Lehto has been practicing law for 25 years, almost exclusively in consumer protection and Michigan lemon law. He wrote The Lemon Law Bible and Preston Tucker and His Battle to Build the Car of Tomorrow.
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