The Pre-Owned Automobile Dealers Alliance (POADA) of Cary, North Carolina, has launched a new certified pre-owned program called CarMark that is in 41 states as of July 28, 2010 with approval being sought in the other nine states. It's a certified pre-owned program for used car dealers not associated with an automotive manufacturer. As always, learn the fine details before buying a CarMark certified vehicle.
According to its website, "POADA is a national alliance of dealers and service providers specializing in servicing the pre-owned marketplace - late-model, pre-owned vehicles ranging from current to four model years old that have less than 100,000 odometer miles at time of resale. The used vehicle industry is enormous, but POADA focuses like a laser beam on that segment with the greatest vitality, the highest profit and the most appeal to franchise dealers, former franchise dealers and late-model independent dealers."
Here are the details of the program, as provided by CarMark:
- CarMark Certified is a 72-month/ 100,000-mile in-service date powertrain warranty for vehicles with some of the original manufacturer warranty remaining.
- Qualified vehicles are current-model plus four years and have less than 60,000 odometer miles.
- A separate powertrain warranty is available for vehicles outside these guidelines that have less than 80,000 odometer miles.
- Both powertrain warranties can be upgraded by the customer with EasyCare vehicle service contract products, providing additional profit potential to the dealer.
- CarMark Certified includes a 116-point quality inspection, rental car reimbursement, towing benefit, trip interruption benefit, tire and wheel protection, and roadside assistance.
- More information on CarMark Certified may be obtained by calling (800) 628-4635 or e-mailing info@carmarkcertified.com.
- Each CarMark certified vehicle comes with a free CarFax report. This is a good benefit, but remember it is only the first step in the inspection process.
The CarMark website does not outline what the 116-point inspection plan is. Demand to see it before buying a certified used car from a CarMark dealer. The independent mechanic you hire to inspect the used car will use this inspection checkpoint to make sure the work was done. (This step should be taken on any certified pre-owned vehicle for sale - not just CarMark vehicles.)
This is a powertrain warranty, as outlined above, "for vehicles with some of the original manufacturer warranty remaining." So, it's not that extensive of a warranty program. It only covers 12,000 miles because most manufacturers go to 60,000. Some do only go to 50,000 miles. Research that point before purchasing the car to see how much of a value there is.
Beware the upsell to the more expensive EasyCare vehicle service contract that POADA admits provides additional profit potential to the dealer. Most dealers, if not all, are going to try to upsell you from the basic certified pre-owned vehicle to the service contract.
Keep in mind that only a new car dealer can sell one of their company's used cars as certified by that manufacturer. For example, a Honda dealer can sell certified used Hondas, but it can't sell certified used Toyotas that are certified by Toyota. With CarMark, though, they can now sell certified used Toyotas, but they're only certified by CarMark. They are not certified by Toyota.
The big difference between manufacturer certification and CarMark is who backs it. CarMark is backed by APCO/EasyCare and not a manufacturer. You will have to file claims when you want work done. Most new car dealers are going to handle the paperwork for you. It's typically a seamless process.
There's some excellent advice from an author I trust at Kiplingers.com on extended warranties (which is what the CarMark program is). According to the article by Jessica Anderson, EasyCare does get an A+ rating from the Better Business Bureau. Read Jessica's article so you know the pros and cons of programs not run by manufacturers.
Another concern would be that POADA is a for-profit business and not an association. Also, it requires its members to adhere to a Code of Ethics, but that ethics code is not available to consumers on its website.
