Certified Used Cars

of Consumer Guide, the Auto Editors. "Certified Used Cars." 27 December 2006. HowStuffWorks.com. <http://consumerguideauto.howstuffworks.com/industry-insider-certified-used-cars-cga.htm> 24 July 2008.

Certified Used Cars

by the Auto Editors of Consumer Guide

How much are you willing to pay for peace of mind? $500, $1,000, $1,500? Manufacturer studies say that consumers will pay an additional $900 for a used vehicle just because there is a "Certified" stamp on it. But what does that certification mean? For starters, it means you pay hundreds or thousands more for a used car in return for peace of mind.

Certified used-car programs began popping up in the early 1990s, were started by luxury nameplates like Lexus and Mercedes-Benz, and fueled by the amount of vehicles coming out of leases during this time. Experts estimate that over 2.5 million lease vehicles are returned to manufacturers each year. Instead of turning these vehicles over to auto auctions or used-car lots, manufacturers developed a program that would cater to wannabe luxury new-car buyers on a budget.

Certified used-car sales make up 41 percent of all used-car sales. One reason for certified used car popularity is that these programs allow consumers to enter a market segment that they normally couldn't afford to enter, which many view is worth the added cost of certification.

Consumer Benefits

One major draw for consumers is the guarantee of a like-new car at a close to used-car price. Most factory-certification programs include 100-point inspection/reconditioning, warranty coverage, and some amount of roadside assistance. A few, such as GM and Acura, even have a return/exchange policy.

For many consumers, the peace of mind provided by purchasing a certified used vehicle is well worth the premium price. This is exactly what the dealer and manufacturer want you to think. In reality, dealers and manufacturers have come up with and back these certified plans because they add to their profit margins.

By certifying a used car or truck, a dealer can jack up the sales price compared to a non-certified vehicle. The cost of certification to the dealer and manufacturer is probably 1/3 to 1/4 of what they are actually charging. Most dealers will certify and purchase warranties on only the cream of the used vehicle crop, and spend from $300-$500 when they do so.

Many dealers will tout the fact that the inspected vehicles are repaired, returned to manufacturer spec, or "upgraded" in the certification process. The fact of the matter is that during the inspection, if a vehicle is found to have a major problem, it is simply removed from the certification process and sold "as is" or wholesaled to an auction house.

Vehicle manufacturers support certified used cars because they push up the value of used vehicles. This means that leases of new cars can be lower, helping increase new-car sales.

By increasing the resale transaction price of a used vehicle, the manufacturer reaps an additional benefit: higher residual values on like-model new vehicles. Which, in turn, increases the lease value of a like-model new car--adding to the manufacturer's profit. This is the reason so many manufacturers get into the certified game with advertising and incentives to dealers.

Factory vs. Dealer Certification

Dealers also offer their own brands of certification, but this is generally a way to further cash-in on the precedent set by manufacturers. If you do decide to go for a certified used car, we recommend you avoid dealer-certification programs. They are a bit of a gamble compared to the option of a factory-certified vehicle--and often not worth the money. Also, be sure to ask for a copy of the inspection/repair list for the particular certified car you're looking at.

Ways to Find a Better Deal

To many consumers, buying "certified" means less hassle in the car-buying process because it allows them to purchase a like-new used car for significantly less than they'd expect to pay for a current model, without forfeiting the security of a factory warranty. But some serious shoppers find non-certified used cars more affordable, and are willing to get the car inspected and purchase warranty coverage independently to take advantage of better prices.

GM Certified Lot
Dealers will often devote entire lots to certified programs. Keep in mind that the dealer is paying $300-$500 for the certification process but charging upwards of $1500.

Ultimately, you can save money by purchasing a used car from an independent owner or dealer rather than from a private or franchised dealer selling certification. We suggest you have any vehicle inspected (certified or not) by a trusted mechanic in lieu of paying for the manufacturer's stamp of approval. If you are concerned about repairs, consider purchasing separate warranty coverage. There are many online automotive warranty providers. Most offer free online quotes, and we urge you to compare quotes and coverages.

Whether you choose a certified used car or not, avoid buying a lemon by getting a Vehicle History Report (VHR) through one of the various online services. Consumer Guide's Vehicle History Report will tell you the title history, report recorded mileage, notify you of major repairs or accidents, and in many cases, list recalls and chronic repair problems. All you need to know is the Vehicle Identification Number (VIN).

The Bottom Line

Dealers and manufacturers market these certified plans because they add to their profits. Are there benefits to the consumer? Sure, but savvy consumers can check the title, purchase an extended warranty, and have a mechanic kick the tires for hundreds or thousands of dollars less than a dealer is charging for the "certified" stamp of approval. For most used-car shoppers, doing a little homework and avoiding the "certified" model can often save upwards of a $1000.

Available Manufacturer CPO Programs

Below is a table of available, manufacturer-backed CPO programs. The details listed summarize each program, so buyers should carefully read the specific details of each contract. Vehicle Qualification is the program requirements for vehicle eligibility. Limited Warranty Terms details period of manufacturer-backed CPO warranty. Return Policy lists availability of exchange or refund if the buyer is not satisfied.

Acura 800-382-2238
Vehicle Qualification Vehicles must be less than 6 years old, have less than 80,000 miles, and pass a 150-point inspection.	Limited Warranty Terms Vehicles keep the balance of the original 7-year/100,000-mile powertrain warranty, as well as come with a 12-month/12,000-mile limited warranty, 24-hour roadside assistance, and Acura's Concierge Service. No deductible.	Return Policy 3-Day exchange policy.
Audi 800-FOR-AUDI
Vehicle Qualification Vehicles must be less than 5 years old, have less than 60,000 miles, and pass a 300-point inspection.	Limited Warranty Terms Vehicles keep the balance of the original 12-year limited corrosion warranty regardless of mileage, the balance of no-charge scheduled maintenance, and up to 6-year/100,000-mile additional limited warranty, and roadside assistance for the duration of the warranty. $50 deductible.	Return Policy No.
BMW 800-332-4BMW
Vehicle Qualification Vehicles must have more than 6,000 but less than 60,000 miles and pass a comprehensive inspection. A complete service history is also guaranteed.	Limited Warranty Terms Vehicles keep the balance of their existing warranty plus a 2-year/50,000-mile limited warranty. They also come with 24-hour roadside assistance. $50 deductible.	Return Policy No.
Buick 888-999-7880
Vehicle Qualification Vehicles must be model year 2003 or newer, have less than 60,000 miles, and pass a 117-point inspection.	Limited Warranty Terms Vehicles get a 3-month/3,000-mile limited warranty plus balance of 5-year/100,000-mile powertrain warranty. They also come with 24-hour roadside assistance.	Return Policy 3-Day, 150-mile satisfaction guarantee.
Cadillac 800-333-4CAD
Vehicle Qualification Vehicles must be less than 5 model years old and have less than 50,000 miles, as well as pass a 117-point inspection.	Limited Warranty Terms Vehicles keep the balance of the 6-year/100,000-mile limited warranty and corrosion warranty, and come with 24-hour roadside assistance. No deductible.	Return Policy No.
Chevrolet 888-999-7880
Vehicle Qualification Vehicles must be model year 2003 or newer, have less than 60,000 miles, and pass a 117-point inspection.	Limited Warranty Terms Vehicles get a 3-month/3,000-mile limited warranty plus balance of 5-year/100,000-mile powertrain warranty. They also come with 24-hour roadside assistance.	Return Policy 3-Day, 150-mile satisfaction guarantee.
Chrysler 800-745-STAR
Vehicle Qualification Vehicles must be less than 5 model years old and have less than 65,000 miles, as well as pass a 125-point inspection.	Limited Warranty Terms Vehicles keep the balance of the 8-year/80,000-mile limited warranty plus a 3-month/3,000-mile Maximum Care Limited Warranty, 24-hour roadside assistance with towing, and a rental car allowance. $100 deductible.	Return Policy No.
Dodge 800-745-STAR
Vehicle Qualification Vehicles must be less than 5 model years old and have less than 65,000 miles, as well as pass a 125-point inspection.	Limited Warranty Terms Vehicles keep the balance of the 8-year/80,000-mile limited warranty plus a 3-month/3,000-mile Maximum Care Limited Warranty, 24-hour roadside assistance with towing, and a rental car allowance. $100 deductible.	Return Policy No.
Ford 800-392-3673
Vehicle Qualification Vehicles must be less than 6 model years old and have less than 80,000 miles, as well as pass a 169-point inspection.	Limited Warranty Terms Vehicles keep the balance of the 6-year/100,000-mile powertrain limited warranty. They also get a 3-month/3,000-mile comprehensive limited warranty, 24-hour roadside assistance and rental car allowance.	Return Policy No.
GMC 888-999-7880
Vehicle Qualification Vehicles must be model year 2003 or newer, have less than 60,000 miles, and pass a 117-point inspection.	Limited Warranty Terms Vehicles get a 3-month/3,000-mile limited warranty plus the balance of 5-year/100,000-mile powertrain warranty. They also come with 24-hour roadside assistance.	Return Policy 3-Day, 150-mile satisfaction guarantee.
Honda 800-999-1009
Vehicle Qualification Vehicles must be less than 6 model years old, have less than 80,000 miles, and pass a 150-point inspection.	Limited Warranty Terms The vehicle gets a 1-year/12,000-mile warranty (non-powertrain) and the balance of the original 7-year/100,000-mile powertrain warranty. No deductible.	Return Policy No.
Hyundai 800-633-5151
Vehicle Qualification Vehicles can be up to 5 model years old, have less than 48,000 miles, and pass a 150-point inspection.	Limited Warranty Terms Vehicles keep the balance of the original 10-year/100,000-mile powertrain warranty as well as the balance of the 5-year/60,000-mile basic warranty. They also get roadside assistance, towing and rental car coverage. $50 deductible.	Return Policy No.
Infiniti 800-662-6200
Vehicle Qualification Vehicles must be less than 4 years old, have less than 60,000 miles, and pass a 142-point inspection.	Limited Warranty Terms Vehicles keep the balance of their original powertrain warranty up to 6 years/100,000 miles as well as get an additional 12-month/12,000-mile basic warranty, 24-hour roadside assistance and trip interruption benefits. $50 deductible per claim.	Return Policy No.
Jaguar 800-4-JAGUAR
Vehicle Qualification Vehicles must be model years 2003-2008, have less than 60,000 miles, and pass a 140-point inspection.	Limited Warranty Terms Vehicles get an additional 2-years/50,000-mile limited warranty from the date the original warranty expires. It includes roadside assistance. No deductible.	Return Policy No.
Jeep 800-745-STAR
Vehicle Qualification Vehicles must be less than 5 years old and have less than 65,000 miles, as well as pass a 125-point inspection.	Limited Warranty Terms Vehicles keep the balance of the 8-year/80,000-mile limited warranty plus a 3 month/3,000-mile Maximum Care Limited Warranty, 24-hour roadside assistance with towing, and a rental car allowance. $100 deductible.	Return Policy No.
Land Rover 800-FIND-4WD
Vehicle Qualification Vehicles must be less than 5 model years old or newer (including the current model year), have less than 60,000 miles, and pass a 140-point inspection.	Limited Warranty Terms Land Rover Certified vehicles come with a 6-year/75,000-mile limited warranty from the vehicle's original date of service and zero miles. 24-hour roadside assistance is included, as is rental-car reimbursement. $100 deductible.	Return Policy No.
Lincoln 800-392-3673
Vehicle Qualification Vehicles must be less than 6 years old and have less than 80,000 miles, as well as pass a 169-point inspection.	Limited Warranty Terms Vehicles keep the balance of the 6-year/100,000-mile limited warranty. Complimentary roadside assistance, emergency travel expenses and rental car/shuttle expense reimbursement.	Return Policy No.
Lexus 800-255-3987
Vehicle Qualification Vehicles must be less than 6 model years old, have less than 70,000 miles, and pass a 161-point inspection.	Limited Warranty Terms Limited warranty is good for up to three years from used-car purchase date, up to 100,000 miles. It includes roadside assistance, a trip interruption loaner car, and a complimentary oil change after 90 days. No deductible.	Return Policy No.
Mazda 800-222-5500
Vehicle Qualification Vehicles must be less than 5 years old, have less than 62,000 miles, and pass a 100-point inspection.	Limited Warranty Terms Vehicles keep the balance of original warranty plus get an additional 4-year/50,000-mile limited warranty, as well as 24-hour roadside assistance for 1 year. No deductible.	Return Policy No.
Mercedes-Benz 800-367-6372
Vehicle Qualification Vehicles must be less than 6 years old, have less than 75,000 miles, have a clean vehicle history report, and pass a 155-point inspection.	Limited Warranty Terms Vehicles keep balance of original 4-year/50,000-mile limited warranty and get additional coverage after it expires for another 12 months, up to 100,000 miles, as well as lifetime roadside assistance and trip interruption benefits. No deductible.	Return Policy 7-Day, 500-mile exchange policy.
Mercury 800-392-3673
Vehicle Qualification Vehicles must be model year 2003 or newer and have less than 80,000 miles, as well as pass a 169-point inspection.	Limited Warranty Terms Vehicles keep the balance of the 6-year/100,000-mile powertrain limited warranty. They also get a 3-month/3,000-mile comprehensive limited warranty and 24-hour roadside assistance. $100 deductible.	Return Policy No.
Nissan 800-647-7261
Vehicle Qualification Vehicles must be less than 5 years old, have less than 60,000 miles, and pass a 142-point inspection.	Limited Warranty Terms Vehicles get a 7-year/100,000-mile warranty as well as 24-hour roadside assistance and rental-car reimbursement and trip interruption coverage. $50 deductible.	Return Policy No.
Pontiac 888-999-7880
Vehicle Qualification Vehicles must be model year 2003 or newer, have less than 60,000 miles, and pass a 117-point inspection.	Limited Warranty Terms Vehicles get a 3-month/3,000-mile limited warranty plus balance of 5-year/100,000-mile powertrain warranty. They also come with 24-hour roadside assistance.	Return Policy 3-Day, 150-mile satisfaction guarantee.
Porsche 800-767-7243
Vehicle Qualification Vehicles must be no older than 8 years, have less than 100,000 miles, and pass a 100-point inspection. Carrera GT models are excluded.	Limited Warranty Terms Vehicles get the balance of the 6-year/100,000-mile warranty, as well as roadside assistance. No deductible.	Return Policy No.
Saab 800-772-2872
Vehicle Qualification Vehicles must be less than 4 years old, have less than 60,000 miles, and pass a 117-point inspection.	Limited Warranty Terms Vehicles get the balance of the original 4-year/50,000-mile warranty and the balance of the original 6-year/unlimited-mileage corrosion warranty up to 72 months/100,000 miles, as well as 24-hour roadside assistance. No deductible.	Return Policy No.
Saturn 800-553-6000
Vehicle Qualification Vehicles must be older than two years, have more than 24,000 miles, and pass a 117-point inspection.	Limited Warranty Terms Vehicles are eligible for a 5-year/100,000-mile limited powertrain warranty and get a 3-month/3,000-mile bumper-to-bumper manufacturer's extension, 24-hour roadside assistance for the life of the limited powertrain warranty. No deductible.	Return Policy No.
Scion 866-70-SCION
Vehicle Qualification Vehicles must be less than 6 model years and have less than 85,000 miles, a clean vehicle history report, and pass a 160-point inspection.	Limited Warranty Terms Vehicles get a 3-year/30,000-mile warranty, 7-year/100,000-mile powertrain warranty, and the remainder of the 7-year/100,000-mile roadside assistance plan, plus a 3-month/3,000-mile comprehensive warranty. No deductible.	Return Policy No.
Suzuki 800-934-0934
Vehicle Qualification Vehicles must have a clean vehicle history report and pass a 144-point inspection.	Limited Warranty Terms Vehicles get a 1-year/12,000-mile warranty and 1-year/12,000-mile roadside assistance plan. No deductible.	Return Policy No.
Toyota 800-GO-TOYOTA
Vehicle Qualification Vehicles must be less than 7 years old, have less than 85,000 miles, and pass a 160-point inspection.	Limited Warranty Terms Vehicles keep the balance of the original 7-year/100,000-mile powertrain warranty and roadside assistance and also get a 3-month/3,000-mile comprehensive warranty. No deductible.	Return Policy No.
Volkswagen 800-822-8987
Vehicle Qualification Vehicles must be less than 5 years old, have less than 75,000 miles, and pass a 112-point inspection.	Limited Warranty Terms Vehicles get the balance of the original warranty, plus an additional 2 years/24,000 miles of coverage and 2 years of roadside assistance. No deductible.	Return Policy No.
Volvo 800-458-1552
Vehicle Qualification Only model years 2003-2008 with less than 80,000 miles are eligible. Vehicles must pass a 130-point inspection.	Limited Warranty Terms Vehicles get the balance of the new car warranty and are eligible for a warranty for up to 6 years/100,000 miles and 24-hour roadside assistance. No deductible.	Return Policy No.