• Honda’s Approved Pre-Owned program is proving successful in Canada.
Since the COVID-19 pandemic, we've seen used vehicle prices climb significantly in the market. One effect of that is those buyers on a budget have had to turn to older pre-owned vehicles. And of course, that brings issues of increased mileage, wear and tear and potentially more repairs.
Typically, dealers offer warranties on newer used vehicles they sell, often under the banner of "certified pre-owned" programs. These extend the vehicle's coverage beyond its original warranty, sometimes pushing the protection period to six or seven years. That can vary from one manufacturer to another.
Honda's approach
Honda has had a certified pre-owned vehicle program for years. It can be applied to any used vehicle less than 5 years old or with under 150,000 km. That can extend the total protection on a Honda vehicle to 7 years or 160,000 km.
However, until very recently, buyers of vehicles older than five years had no access to a new warranty.
The new Approved Pre-Owned program covers all used Honda or Acura vehicles between 6 and 10 years old, with no mileage limit.
Vehicles eligible under the program have been inspected and verified by Honda technicians to ensure its proper functioning. The protection period extends for 6 months or 12,000 km from the purchase date.
An 8-year-old Honda Civic with 250,000 km on the odometer, and which passes the dealer's inspection, can thus be offered through the new program.
A success story
The new program launched in February and has been popular with consumers. Canada-wide, Hond dealers sold over 1,000 approved vehicles in the first three months after implementation. It's estimated that sales could reach 7,500 units this year.
This is a great idea to offer peace of mind to consumers who are forced to turn to older models due to budget constraints.
Of course, we strongly encourage you to monitor the prices of models offered with this program and compare them to similar products offered by private sellers. You can always buy a vehicle from a private individual and take it to a mechanic for inspection to see if you're getting a good deal.
It will be interesting to see if other automakers follow suit with similar initiatives.