Benefits of Buying  
[Toyota] Certified Pre-Owned

If you’re thinking of buying a pre-owned car then you have to
seriously consider the benefits of a certified pre-owned Toyota.

Many buyers of pre-owned vehicles are still unaware of the serious benefits that come along with buying a vehicle that’s been certified by the manufacturer.

In this iDriveSoCal Podcast, we sit down with West Coast Toyota’s Pre-Owned Vehicle Manager, Sean Salezadeh, to learn the specific differences and benefits Certified Pre-Owned Toyota’s offer.

Click play below to hear how the extra cost that comes along with buying a pre-owned vehicle that’s been certified often actually pays for itself!

Sean Salezadeh talks with someone off camera while working at his desk at West Coast Toyota Long Beach as part of iDriveSoCal Podcast Banner 167 Benefits of Buying Toyota Certified Pre-Owned

***Transcription***

Recorded @ West Coast Toyota in Long Beach, CA

Certified Pre-Owned @ West Coast Toyota

Sean Salezadeh: The best thing about a certified pre-owned is the valuation. Somebody else has already taken the depreciation. It comes with a one year, 12,000 [warranty] from the time you purchase the vehicle.

You get a seven-year, 100,000 [warranty] from the time the original owner first registered the vehicle on your powertrain. Most vehicles have incentivized rates, that you do save money on the financing as well.

Two men working in the office of a car dealership smiling.

West Coast Toyota Management – all smiles @ work!

Tom Smith: Welcome to iDriveSoCal, the podcast all about mobility from the automotive capital of the United States. Southern California. Tom Smith here. I am at our partners in Long Beach, West Coast Toyota Long Beach. Joining me, is Sean Salezadeh.

Sean is the pre-owned manager here at West Coat Toyota Long Beach. The topic that we’re going to be covering today is something that’s fascinated me for a number of years, cause it’s been around for about 20-ish years, the concept. That is certified pre-owned vehicles.

Sean Salezadeh: Right.

Tom Smith: The benefits of certified pre-owned are many. When you drill down, it’s really a compelling offer.

“It comes with a one year, 12,000 [warranty] from the time you purchase the vehicle.”

I mean, do I buy? Do I lease? Possibly, do I go pre-owned? If you go pre-owned, the certified pre-owned option is really significant for a number of reasons.

Sean, why don’t you give me a big picture view, high-level view of certified pre-owned. We’ll drill down on some of those specifics.

Benefits of Toyota Certified Pre-Owned

Sean Salezadeh: Well, the best thing about a certified pre-owned is the valuation. Somebody else has already taken the depreciation on most pre-owned cars. The added benefit is that you’re getting a quality pre-owned vehicle inspected by a Toyota dealership, with Toyota certified technicians, 160 point inspection plus, they give you, we give you a full set of keys, as the car came, everything as the car came brand new.

Tom Smith: The full set of keys… It’s significant though, right?

Sean Salezadeh: It’s significant. This day and age, yes.

Tom Smith: Yeah, yeah. Keys these days aren’t keys what they used to be, right?

Tom and Sean laugh at something off camera while sitting at the iDriveSoCal Podcast booth

Having fun talking Toyota Certified Pre-Owned @ West Coast Toyota

Sean Salezadeh: Exactly.

Tom Smith: They’re the little radio frequency mini computer chips that open our shut, lock our doors, open the trunk and everything else, panic button.

Sean Salezadeh: …and can cost 400 plus dollars.

Tom Smith: Yeah, just for those little keys.

Sean Salezadeh: Yeah.

Tom Smith: Those little keys. First you said depreciation. Now, the depreciation we’re talking about is when you drive a car off of a lot…

Sean Salezadeh: Correct.

Tom Smith: It immediately begins depreciating.

“You get a seven-year, 100,000 [warranty] from the time the original owner first registered the vehicle on your powertrain.”

Sean Salezadeh: It’s the largest is the first year.

Tom Smith: The first year. Okay. That percentage is different based on every car, right?

Sean Salezadeh: Correct.

Tom Smith: Not only is it different, but it’s also, I mean, there’s a whole market for that, right?

Sean Salezadeh: Yes.

Tom Smith: You have various companies that just, on behalf of banks and finance companies, estimate what a car is going to be worth in three years, five years, et cetera.

Sean Salezadeh: Exactly.

Depreciation Avoidance & Higher Inspection Standards

Tom Smith: Depending on the mileage, depending on the condition, everything else. That’s a whole nother world.

Depreciation, so a new car depreciates the second you roll it off the lot, or the second it… I’ve also heard this referred to as, the second it has your name on the title, right?

Sean Salezadeh: Pretty much. As soon as it gets registered and you drive and put a mile on the vehicle it depreciates.

Tom Smith: Okay. In the world of pre-owned, you’re not taking… That first buyer is taking the biggest hit of depreciation.

And then, the nice thing is about any pre-owned is obviously not having to deal with that depreciation, not absorbing that yourself.

With certified pre-owned, it’s kind of that middle road between a pre-owned vehicle and a new vehicle. The manufacturer is giving its blessing based on the… What did you say it was? The inspection?

Sean Salezadeh: 160-point inspection.

4Runner West Coast Toyota Long Beach

4Runner West Coast Toyota Long Beach

Tom Smith: 160-point inspection. That is a vehicle that I’m not paying the new price.

I’m not absorbing the depreciation, but I’m still getting it thoroughly inspected, and quite literally and figuratively now, certified by the manufacturer.

The certification, it comes with an extra warranty, it comes with parts that are OEM parts only. It’s just a higher level of… The bar is raised so to speak.

“…there is a tighter restriction on what will pass and what won’t pass on certified cars.”

Sean Salezadeh: Correct.

Tom Smith: Now, tell me a little, a bit about the warranty that comes with Toyota certified pre-owned vehicles.

Sean Salezadeh: It comes with a one year, 12,000 from the time you purchase the vehicle.

Tom Smith: Okay.

Certified Pre-Owned Manufacturer Warranty

Sean Salezadeh: If the vehicle has already some remainder of the manufacturer, three years, 36, it adds to the addition of that… And also, you get a seven-year 100,000-mile power train…

Tom Smith: Okay.

Sean Salezadeh: …which that starts from when the vehicle was first registered.

Tom Smith: Let’s give an example of the warranty. I’m buying a certified pre-owned vehicle. It’s got 20,000 miles on it. It’s two years old. Give me an example, or if you would prefer to erase my example and give me a different example.

Sean Salezadeh: For example, let’s say, yeah, let’s say you have a two-year-old vehicle with 24,000 miles. It’s a little bit easier to calculate.

Tom Smith: A two-year-old vehicle at 24,000 miles?

Sean Salezadeh: Correct.

Tom Smith: Okay.

Sean Salezadeh: Your typical full comprehensive is three year, 36,000, right?

Tom Smith: Okay.

Sean Salezadeh: If the car was not certified, you would get a one year, 12,000 remainder of the warranty.

Tom Smith: Okay. Just what’s leftover of the manufactures warranty.

A Toyota 4Runner and a Toyota Highlander parked in the showroom of West Coast Toyota

West Coast Toyota Long Beach Showroom

Sean Salezadeh: Correct. No seven year, 100,000.

Tom Smith: I’m buying certified pre-owned.

Sean Salezadeh: If you buy certified pre-owned, you do get the remainder, which is the one year, 12,000, same vehicle. You get an additional year to that.

You get two years, 24,000,  a seven-year, 100,000 from the time the original owner first registered the vehicle on your power train.

Tom Smith: Now, what does that mean, the power train? What is that gonna cover?

Sean Salezadeh: Engine transmission. Major…

“You’re getting value and peace of mind across the board.”

Tom Smith: Major engine and transmission.

Sean Salezadeh: Yep. Drive axles too.

Tom Smith: And axles as well?

Sean Salezadeh: Yeah.

Tom Smith: Okay.

Sean Salezadeh: Power train.

Peace of Mind

Tom Smith: That’s what it covers. What kind of extra expense. Give me an example of… What should we give an example of, say a Camry or Corolla or something like that.

Sean Salezadeh: Basically, other than the certification costs that we incur obviously, there is a tighter restriction on what will pass and what won’t pass on certified cars. The limits are generally about three millimeters on tires, but a, certified has to be five millimeters or better.

Tom Smith: Tires have to have less, significantly wear.

Sean Salezadeh: Less wear and the brakes, and the brake pads …

Tom Smith: Okay.

Sean Salezadeh: …and everything. For example, we’ve taken a car that the brake pads are four millimeters. It’s not certified it’ll be fine, but if it’s certified, it won’t pass. You have to replace and put new brakes.

Tom Smith: That can you’re gonna have a vehicle with brand new brakes.

Sean Salezadeh: Brand new brakes. Correct.

Tom Smith: You’re getting… Big picture, you’re getting peace of mind across the board. You’re getting value and peace of mind across the board. What am I paying for? That’s what I was getting to. If we’re gonna take an example of a… Well, you tell me what we should make an example of. A Corolla, a Tacoma, a Camry.

Sean Salezadeh: We’ll do a Corolla.

Sean Salezadeh explains the benefits of Toyota certified pre-owned.

Toyota Certified Pre-Owned delivers many benefits.

Tom Smith: Okay.

Sean Salezadeh: It’s easy.

Tom Smith: Okay. Let’s say a Corolla with … A two-year-old Corolla with 24,000 miles …

Sean Salezadeh: Okay.

“…incentivized rates, that you do save money on the financing as well.”

Tom Smith: …that’s certified pre-owned, and that’s not certified pre-owned.

Sean Salezadeh: Okay. Are we talking about selling price?

Tom Smith: Yeah, yeah. What am I gonna pay for?

The Extra Cost Pays for Itself

Sean Salezadeh: What’s the market. Generally the market on a pre-owned to a non-pre-owned, I mean this is kind of, a guesstimate, cause it does fluctuate at times.

Tom Smith: Right. It depends on the specific vehicle, depends on the equipment that the vehicle has. There’s a lot of factors. Just generally speaking…

Sean Salezadeh: It’s about $800 dollars, about $800 dollars more value for a certified pre-owned.

Tom Smith: About $800 dollars…

Sean Salezadeh: Yeah.

“Generally, the certified pre-owned, versus non-certified, about seven to $800 on a Corolla.”

Tom Smith: That’s about $800 dollars more than I have to pay to buy a certified pre-owned Corolla, two-year-old Corolla from you.

Sean Salezadeh: Average. Correct.

Tom Smith: Okay.

Sean Salezadeh: Yeah. For example, if it’s a non-certified, then the market would be 15,000, like 14,991, whatever. The certified pre-owned would be about 15,900.

Tom Smith: About 15,900?

Sean Salezadeh: Yeah. 15,900.

Tom Smith: Sean’s waving to a happy West Coast Toyota customer.

Sean Salezadeh: That’s right. They just purchased a Camry.

Tom Smith: Let’s just leave it. All right. Awesome. They purchased a certified pre-owned Camry, right?

Sean Salezadeh: Correct.

Tom Smith: Awesome. Perfect. There’s…

Kenny & Sean Working on Certified Pre-Owned

Kenny Jumps, GM, & Sean Salezadeh work on Certified Pre-Owned vehicles @ West Coast Toyota

Sean Salezadeh: …the bell.

Tom Smith: There’s the bell. All right. As they drive off in their certified pre-owned Camry. The price difference is gonna be around $800 bucks on that example that we’re giving.

Sean Salezadeh: Example. Sometimes, it could go over a thousand dollars, depends.

Sometimes on Camry’s could be more, steeper, like it’d be more… What we do is, we look at the markets and what’s available. Obviously, supply and demand dictate how it goes up and down.

Tom Smith: Right.

Why Buying Certified Pre-Owned Makes Sense

Sean Salezadeh: Generally, the certified pre-owned, versus non-certified, about seven to $800 on a Corolla.

Tom Smith: The value is definitely there for the extra seven or $800 dollars. You factor that into a payment and maybe you pay cash, but most people finance the car.

They’re financing it for 36, 48, 60 months. Over the course of that time, that $800 dollars-ish that you’re paying or a thousand dollars, whatever it is, it’s very…

Sean Salezadeh: Insignificant.

Tom Smith: Yeah. It’s very small when you’re looking at the difference in payment.

Sean Salezadeh: That could be just a set of brakes and the extra key would be right there.

Tom Smith: Right, right. The other factor is certified pre-owned, you open up some preferential financing as well.

Sean Salezadeh: Yes, yes.

Tom Smith: Right?

Sean Salezadeh: Most vehicles have incentivized rates, that you do save money on the financing as well.

Tom Smith: That extra, few extra bucks that I might be spending in the payment, to get the certified pre-owned Corolla or Camry or whatever it is, because I can get preferred rates in financing, I might be washing it out right there.

Sean Salezadeh: Exactly.

Tom Smith: Right?

Sean Salezadeh: Yes.

Tom Smith: I love it. I love it. Certified pre-owned, I’m a big fan of personally. You guys, what’s the percentage of vehicles? Do you…

West Coast Toyota Long Beach Showroom

West Coast Toyota Long Beach Showroom

Sean Salezadeh: To keep in stock?

Tom Smith: Percentage of vehicles that you guys typically sell certified pre-owned against just pre-owned.

Sean Salezadeh: It depends on the inventory levels.

Tom Smith: Okay.

Sean Salezadeh: Sometimes a lot of the cars won’t pass.

Not Always Easy to Find

Tom Smith: Okay.

Sean Salezadeh: We have to send ’em to the auction.  They’re hard to acquire if you’re getting trade-ins that have these really tight restrictions or just simply for cost factors, you can’t get ’em to certify. Generally, it’s about 60/40. We are looking to be at 80% of certified vehicles because it just seems to be customers are happier.

Tom Smith: Yeah.

Showroom West Coast Toyota Long Beach

Showroom West Coast Toyota Long Beach

Sean Salezadeh: With the statistics that Toyota put out, over 60% of them tend to come back and purchase another vehicle from us. Generally, they come back and buy a new car.

Tom Smith: Okay.

Sean Salezadeh: I’m not too happy about that.

Tom Smith: Being the pre-owned guy?

Want Sean to find you a specific Certified Toyota?
Contact Sean Directly @ West Coast Toyota
SeanS [at] WestCoastToyotaLB [dot] com
562-733-5164

Sean Salezadeh: Yeah.

Tom Smith: That’s funny. No matter what you do, buy pre-owned, certified pre-owned, or buy new, or lease, you gotta make sure you’re coming here to West Coast Toyota.

Well, that’s good stuff. Thank you, Sean, so much. Again, Sean Salezadeh.

Sean Salezadeh: Yes.

Tom Smith: I got it. All right. The pre-owned and certified pre-owned manager here at West Coast Toyota in Long Beach. Thank you so much for joining me.

Sean Salezadeh: Thank you.

Tom Smith: Is there anything else that you’d like to touch on before we wrap this one up?

Sean Salezadeh: No, that’s it. We pretty much talked about everything.

Certified Pre-Owned @ West Coast Toyota

Tom Smith: Okay.

Sean Salezadeh: Yeah.

Tom Smith: How about this? Would you like to drop your contact info for anybody to reach out to you with any questions specifically?

Tom interviews Sean @ West Coast Toyota Long Beach

Sean Salezadeh explains the benefits of buying Certified Pre-Owned @ West Coast Toyota

Sean Salezadeh: Sure. My email is SeanS [at] WestCoastToyotaLB [dot] com. You can send me an email. It’s very easy to get a hold of me. No waiting at all. I’ll respond right away.

Tom Smith: Sean is spelled S-E-A-N. S for Salehzadeh.

SeanS [at] WestCoatToyotaLB for Long Beach [dot] com. Do you wanna drop your number as well? We’ll post Sean’s number in the actual post. We’ll go with the email for the podcast and we’ll include the number in the post because Sean’s an email guy. He’ll respond right away.

Additional questions?
Contact Sean Directly @ West Coast Toyota
SeanS [at] WestCoastToyotaLB [dot] com
562-733-5164

West Coast Toyota License Plate

The Plate

Sean Salezadeh: I don’t have it memorized.

Tom Smith: I don’t have my number memorized. I know, you don’t call yourself, right?

Sean Salezadeh: Yeah, exactly.

Tom Smith: I don’t know what my home number is.

Sean Salezadeh: Yeah.

Tom Smith: All right. Anyway, Sean, thank you so much.

Thanks for being a great partner of iDriveSoCal. We love you guys here at West Coast Toyota in Long Beach. For iDriveSoCal, I am Tom Smith. Until next time, thank you so much for tuning in.

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