I must confess, I absolutely LOVE car warranties.  It’s not because I love warranties themselves, it’s because I hate, despise, (any other negative word here), paying for car repairs.  After I spend $15-$40 thousand dollars on a car, I don’t want to pay for anything except gas and maintenance.  Did I mention that I loath paying for car repairs?

So what does a Certified Preowned car (CPO) do for people that like warranties?  CPO refers to cars that are offered for sale with the support of the vehicle’s original manufacturer, with warranties that extend beyond the initial warranty.

The original manufacturer (Ford, Toyota, BMW, for example) uses their network to first inspect the car, and then certify the car and extend the original warranty if it’s in great condition.  I’m highlighting original manufacturer because used cars sold with warranties not from the original manufacturer (a.k.a. “third party”) are not truly CPO cars because there is no extension of the original warranty.  This matters because third party warranties vary extensively and require a lot of research and work to fully understand.

Here’s a four page article about understanding third party warranties.  Reading this article is only the first step.  You have to actually do what the author says if you want to avoid getting cheated into buying an overpriced and insufficient warranty.  My suggestion is only work with dealers that can extend original warranties.

There are other good things that come with CPO cars too.  You will often become eligible for other benefits that come with new cars purchases such as shuttle service, loaner cars, and emergency assistance.  Here is a nice site from Edmunds that explains what CPO means for different manufacturers.

The verdict for me, and probably for you, is Big Benefit rather than Big Bellyache.  Original car warranty extensions, detailed car inspections, and extra services are all things that people like in used cars.

I bought a Honda Civic about nine months ago and it’s great.  However, I have to admit that I really wanted a hybrid car but there weren’t enough used hybrids for sale to get a good discount at the time.  In fact, many used hybrid cars were selling for more than their original purchase price!  Times have changed, and currently used hybrids are much more affordable - at least temporarily.

Gas is at about half of it’s all time high.  However, most Americans intuitively believe that gas prices are going to rise again.  When the economy emerges from its turtle shell and the U.S. stimulus package starts funding new growth and jobs, gas prices are bound to rise - thereby increasing the demand and prices for hybrids.  For now we can bask in the glow of low hybrid car prices.  To prove the low price point, I put together a table today (Feb. 9, 2009), using Carsala’s price quoting tool, for two of three most popular hybrid cars.  Don’t believe the results?  You can and should check the discounts for yourself on Carsala’s web site.

The “Discount Off Blue Book” column was generated by using Carsala’s price quoting tool and for cars in the model years 2006-2008 with no more than 30,000 miles.  The “Estimated Price” column was generated by applying the discount to cars with only 25,000 miles.  Can you believe the average price for a 2007 Honda Civic Hybrid with only 25,000 miles is $16,100?  Remember, these prices are for cars that should be in excellent condition, still have warranties, and have been inspected by a professional.

It’s possible that the Toyota Prius and the Honda Civic Hybrid aren’t right for you.  There are a lot of options to choose from - some better than others.  Here’s a partial list in alphabetical order.  Not all of these cars will be available in the used car market if they are new to the car market or are made in limited quantities.

• Chevrolet Tahoe Hybrid
• Ford Escape Hybrid
• Lexus RX 400h
• Honda Accord Hybrid
• Nissan Altima Hybrid
• Mercury Mariner Hybrid
• Saturn Aura Hybrid
• Saturn Vue Hybrid
• Toyota Camry Hybrid
• Toyota Highlander Hybrid

So if you’re looking to buy a hybrid, now’s a great time.  Looks like I may be getting a hybrid after all…

Many cars have really, really, awful names.  These names fail to inspire us or even cause us to consider buying the cars they name.  Names such as the Volkswagen Routan, Pontiac Parisienne, and Renault Le Car all fail miserably to make me even wonder what those cars look like.  In some special instances, car names can actually do damage to the car company and these cars have made it to the top of my list: The Top 5 Worst Car Names - Period.

Name: Perodua Kancil

Never heard of this car?  I’m not surprised.  I discovered this car during my travels to Malaysia many years ago.  When translated, Kancil is supposed to mean “mouse deer.”  My Malaysia friend translated it to me as “gazelle.”  The problem as you may have picked up is that the name is dangerously close to “cancel,” and in a country where most people speak some English, this is what the car is commonly called.  Don’t feel like driving a car that is already “canceled?”  Neither do many people in Malaysia although it is still produced today.

Name: Nissan Armada

Oh, the ill fated Spanish Grande y Felicísima Armada, or “Great and Most Fortunate Navy.”  If Nissan had only been more fortunate in naming this SUV.  The problem with the name Armada is that it may be best known for the Spanish Armada’s defeat at the hands of England.  Starting with the Battle of Gravelines, the Armada went on to lose about 50 ships and 5,000 men.  Based on the Nissan Armada’s sales and poor reliability history, I reckon another Armada is about to be lost.

Name: Chevy Nova

Poor little Chevy Nova.  The name was supposed to inspire images of a great shining star.  Instead, the name caused this car to be the butt of many, many jokes and false rumors.  In Spanish, Nova can be separated into “no va” which literally means “no go.”  People still claim that the Nova sold poorly in Spanish speaking countries because of the poor name choice.  In reality, it didn’t sell poorly, but I’m betting it would have sold a lot better with a better name.

Name: Oldsmobile

Ransom E. Olds, (yes, his first name was Ransom) was the founder of Olds Motor Works.  In 1897 he named the business after himself.  I know the company’s naming happened more than a century ago, but it’s hard to believe that calling an automobile “old” was ever a good idea, and in 2004 Oldsmobile stopped producing cars.  Although the word Ransom itself has all sorts of criminal and illegal undertones, there’s something intriguing about the name and I’m wondering if it would have been better to change the company name to Ransom rather than shut the whole operation down.

Name: Ford Explorer, Expedition, Excursion, E????

When my wife and I named our two daughters, we spent a lot of time thinking about all the ways a fifth grader could change a first name into an insult.  Apparently nobody at Ford thinks this is a valuable exercise when naming a series of SUVs.  In about 2001, I distinctly remember getting emails and hearing a lot of jokes around the office about the next great Ford SUV - the Expenditure.  I’m sure somebody at Ford got a big bonus and a promotion for naming these cars, but when everybody is making fun of Ford SUVs for being an expenditure, that can’t be good for business.

Do you think I missed a truly terrible car name?  Write a comment and share the name!