This is what I don't get about this line of thinking - I think we all can agree that there is a cost to having a car sitting on your lot unsold, so the savings of not having to possibly safety the car twice seems like a false economy to me. For a car like the one we're talking about, you're going to have to spend the money on repair/refurbishment anyway (unless it goes to auction). If you spend the money upfront, you get the benefit of a more marketable/attractive car - it becomes easier to sell, no?
Not defending the practice but it seems pretty common these days even from dealers with good ratings.
-Many used car "dealers" do not have in-house mechanics that can certify the vehicle so paying over and over for the safety every 30 days is a cost issue. Obviously not the case for all.
-Someone may want to swing an as-is deal and certify themselves.
-They may sell it to another dealer to clear the inventory.
-Buyer may notice other non-safety items and want those fixed, they don't want to send it to outside mechanic twice.
-TVM if inventory does not move, cash flow.
-OMVIC rules regarding as-is and certified in advertisements may make it easier to do it this way (no idea, just seeing a pattern)?
-Of course shifty reasons and maybe other less shifty ones I do not know about. It is common these days, one can always exclude dealers that do it this way, my guess is that will reduce the pool of vehicles dramatically at certain price points. I find it is more common for smaller used car dealers but I have had large dealers do the same thing.
Even if the car was all fixed up and ready, PPI will still hopefully find both safety and non-safety items. PPI has saved me and my friends multiple times. Cars that test drove with no noted issues or bad sounds. Blown and leaking headgaskets, emission codes cleared by seller, rotted/failing subframe on a certified car from dealer (my mechanic noted, "at least they could have filled it with bondo and sprayed it with undercoating...just lazy"), bad clutch, major leaks, vacuum leaks, etc.