“Certified”
Used Cars Come Under Fire
Wave of Lawsuits Claim Widely Offered Guarantees
Fail to Disclose Past Problems
The
Wall Street Journal
July 12, 2005
By Kim-Mai Cutler
“Certified”
used car programs are coming under increasing attack from consumer advocates
and lawmakers amid allegations that buyers are sometimes being overcharged
for vehicles that aren’t significantly different from regular used
cars.
Used car programs like these—which typically promise warranty coverage
as well as rigorous inspection programs—gained popularity in the 1990s
as auto makers looked for ways to resell the thousands of leased vehicles
coming back to them. By certifying that their vehicles had been checked
and refurbished, dealers were able to get higher prices. Consumers received
reassurance that they weren’t buying a lemon….
However, a wave of lawsuits is raising questions about used-car certification
practices, which can vary significantly among brands and dealerships….
Consumer advocates say that inspections of the vehicles aren’t always
thorough. “Car dealers take advantage of that fear and exploit it
to make more money and they still end up selling people a bad car,”
said Rosemary Shahan, president of Consumers for Auto Reliability and Safety….
The bill being considered in California would not only make it illegal in
that state to sell any car that has prior frame damage, but it would also
prohibit certification of a vehicle if the odometer had been tampered with,
among other factors. It’s part of a broader “Car Buyer’s
Bill of Rights” that would give consumers the option to pay for a
two-day grace period to return a car they’re unsatisfied with.